The Verkhovna Rada approved Bill No. 0382 on the ratification of the Convention between the Government of Ukraine and the Government of Australia for the elimination of double taxation with respect to taxes on income, and the Protocol to it, the press service of the Office of the Verkhovna Rada said.
“Entry into force of these international treaties will ensure the application of rules on the taxation of income agreed by Ukraine and Australia and will promote the further development of bilateral economic cooperation and trade ties,” the statement said.
Ratification is aimed at developing economic relations between Ukraine and Australia, strengthening cooperation and reducing tax barriers to foreign investment and trade. Income received by residents of Ukraine and Australia may be subject to taxation simultaneously in both countries.
The Convention sets out methods for eliminating double taxation and provides for the exchange of tax information between the competent authorities of Ukraine and Australia. It also establishes a mutual agreement procedure that allows residents to challenge actions of one of the contracting states.
Ratification aims to prevent tax evasion and avoidance, including improper access to benefits provided for in the Convention. The statement did not specify the date on which the treaties will enter into force.
