17:21 12.11.2012

Klymenko calls new tax agreement with Cyprus a 'beacon' for business

1 min read
Klymenko calls new tax agreement with Cyprus a 'beacon' for business

Head of the State Tax Service (STS) of Ukraine Oleksandr Klymenko has praised the signing of the convention on the avoidance of double taxation and income tax evasion between Ukraine and Cyprus.

"I believe that this document is an unambiguous achievement for our state," he said at a press conference in Kyiv on Monday.

Klymenko said that such arrangements should serve as a "beacon" for business in terms of Ukraine's investment attractiveness.

He also noted that during the negotiations, Ukraine had managed to get "much better terms with the Cyprus side than our neighbors."

As reported, the current agreement with Cyprus on the avoidance of double taxation provides no tax on royalties and dividends, which is actively used by Ukrainian businessmen, while formalizing the ownership of Ukrainian assets through Cypriot companies.

According to the State Statistics Service, the residents of Cyprus are the largest investors in Ukraine: $14.52 billion as of July 1, 2012, or 27.7% of total foreign direct investment in the country. They are followed by German companies: $7.4 billion, or 14.1%.

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