Ukrainian Finance Minister Oleksandr Danyliuk and British Minister of State for Foreign and Commonwealth Affairs Alan Duncan have signed a protocol on amending the agreement between the governments of Ukraine and the United Kingdom on avoiding double taxation, the Ukrainian Finance Ministry has reported.

According to the protocol, the signing of the protocol helps avoid tax evasion and simultaneously reduce the pressure on law-abiding taxpayers, as well as to ensure the exchange of tax information.

The protocol foresees the taxation of dividends at a rate of 5% if the actual owner of dividends is a company with a minimum of 20% of the capital of the company that pays dividends. For other cases, the rate was raised from 10% to 15%. Also, according to the document, the parties agreed to increase the rate of interest taxation from 0% to 5% and royalty taxation from 0% to 5%, the ministry said.