Ukraine's Verkhovna Rada has ratified a protocol amending the Convention between the governments of Ukraine, the United Kingdom and Northern Ireland on Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income and estate value increment.

An Interfax-Ukraine correspondent has reported that 323 MPs backed at second reading the bill during the session on Wednesday.

Deputy Finance Minister Pavlo Khodakovsky said that amendments to the 1993 Convention between countries are necessary to harmonize its provisions with the corresponding Convention of the Organisation for Economic Co-operation and Development.

"The provisions of the protocol provide for the taxation of dividends at a rate of 5% if the actual owner of the dividend is a company that owns at least 20% of the company that pays dividends and raises the rate from 10% to 15% in other cases. The tax rate for interest increased from 0% to 5%, the rate for royalty – from 0% to 5%," Khodakovsky said.

In addition, the document expands the possibilities of the parties regarding the exchange of tax information, the deputy minister said.