Ukraine's Cabinet of Ministers has asked the Verkhovna Rada to ratify amendments to the convention with Cyprus on avoiding double taxation and preventing tax evasion.

The proposal is outlined in cabinet resolution No. 243 of March 30 posted on its website.

According to the explanation to the resolution, the protocol amending the convention between Ukraine and Cyprus was signed on December 11, 2015. Taxpayers who seek to apply 5% tax on dividends are to hold at least 20% of shares in a company and invest no less than EUR 100,000 in its charter capital. The 10% tax rate will apply in other cases. The tax rate for dividends will be increased from 2% to 5%.

The protocol envisages amendments to taxation of income from selling shares in companies which cost exceeds 50% of the cost of entire property of these companies.

Ukraine and Cyprus agreed that the protocol will take effect no earlier than January 1, 2019.