OREANDA-NEWS. November 09, 2012. It has been made first step to eliminate perhaps the oldest "offshore leak" of capital from Ukraine. The Cabinet approved the draft of the Convention between the Government of Ukraine and the Government of the Republic of Cyprus for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.

Foreign Minister Konstantyn Gryshchenko is authorized to sign the documents.

As you know, currently in this sphere of legal regulation operates agreement that Ukraine inherited: between the Government of the USSR and the Government of the Republic of Cyprus for the avoidance of double taxation on income and property. Since independence was not signed bilateral agreements between Ukraine and the Republic of Cyprus on the issue. It is very difficult and slow moving talks and the problem was tying up.

Convention will substantially change the situation and should be in the way of an offshore source. The document is intended to provide a reliable safeguard what about tax evasion and avoidance of double taxation. It also assumes that the signing of a mutual concept will reduce tax barriers to foreign investment and trade.