OREANDA-NEWS. November 16, 2012. A Convention signed between the Government of Ukraine and the Government of the Republic of Cyprus, for the avoidance of double taxation and prevention of tax evasion with respect to taxes on income and property, will increase government revenue. This was stated by the First vice Prime Minister of Ukraine Valeriy Khoroshkovskyi during the briefing, which was held in the Cabinet of Ministers of Ukraine.

According to the First vice Prime Minister of Ukraine, signed Convention will contribute to the improvement of the legal framework of trade-economic and investment cooperation between Ukraine and Cyprus.

Valeriy Khoroshkovskyi stressed that the Convention will replace the current agreement, which was signed in 1982 between the governments of Cyprus and the former Soviet Union. "Under the new Convention enters general rate of 15% for dividends (5% if the recipient owns at least 20% of the capital invested, or not less than 100 thousand euros to the company that such dividends are paid), 2% - for the interest rate and the total 10 % for royalties (5% for royalties, patents, trademarks). Prior to that, all of these items were rate of 0%, "- he said.

"The signing of the Convention is an important event, but not sufficient. The next step after its ratification should be the adoption of legislation on transfer pricing. This is a priority for the Government and the Parliament", Valeriy Khoroshkovskyi said.