Ukraine and Cyprus have agreed to review bilateral agreements on taxation to prevent the withdrawal of capital to offshore zones, Finance Minister Natalie Jaresko wrote on Facebook.

"After very lengthy negotiations, we've finally taken an important step in the fight against capital withdrawal to offshore zones: we have with the government of Cyprus to revise the rates within the convention concerning double taxation avoidance with the country. These conditions of taxation correspond to the recommendations of the tax OECD (the Organization for Economic Cooperation and Development)," she wrote.

As reported, the draft guidelines of the budget policy of Ukraine for 2016 (the budget resolution), submitted by the Cabinet to the parliament, state that one of the priorities in tax policy is preventing income and capital tax evasion via negotiations with foreign countries on international treaties on double taxation avoidance, as well as amending the existing treaties, in particular those with Cyprus, Switzerland, Luxembourg, and the Netherlands.