The Cabinet of Ministers of Ukraine, at a meeting on December 17, approved a draft law on dissolving a convention between the Ukrainian government and the government of Cyprus on avoiding double taxation and preventing income tax evasion as a protocol in signing the convention.

According to a post on the official website of the Finance Ministry of Ukraine, law No. 412-VII of July 4, 2013 ratified the said convention.

Compared to conventions signed by Ukraine with other countries, the Ukrainian-Cypriot convention contains articles which foresee beneficial taxation for certain types of income.

"According to the document, interest rates are taxed at 2% [Article 11], while in other conventions – 5-10%," the ministry said.