Cabinet initiates dissolving of double taxation convention with Cyprus - premier

15:45, 17.12.2014 1 min read

The Cabinet of Ministers of Ukraine is to approve a bill to dissolve a convention made with Cyprus on the avoidance of double taxation, Ukrainian Prime Minister Arseniy Yatseniuk said.

"I would like to begin with the first bill, which will be approved by the government today – this is a bill on the denunciation of a convention between Ukraine’s government and the Republic of Cyprus," he said, before the opening of the cabinet's sitting on Wednesday.

Yatseniuk said that when this convention was signed in 2012, it was meant to protect the wealthiest part of the population, since it included a 0% tax rate on the sale of property.

"Since the property was sold via offshore companies, tax was paid neither in Ukraine, nor in Cyprus. That's why the government is addressing parliament to back the denunciation of this document," he said.

Besides this, Yatseniuk said that Ukrainian government urgently wants to begin negotiations with Cyprus over the signing of a new agreement.