This decision will create a favorable investment climate

The Verkhovna Rada has ratified the Intergovernmental Convention for the Elimination of Double Taxation with Japan, which was signed in February 2024, according to the document card on the Verkhovna Rada website.

The new convention establishes the procedure for distributing the rights to tax income received by residents of one state in another, in particular, restricts the right of the country that is the source of income to

– taxation of dividends (5%);

– interest (10% and 5%);

– royalties (5%).

In addition, the convention establishes arrangements for the exchange of tax information between the relevant authorities of Ukraine and Japan and prescribes mechanisms by which companies can challenge accrued taxes if they do not comply with the terms of the agreement.

“The signing of this agreement opens up new opportunities for our countries, contributes to the creation of favorable conditions for investment and the strengthening of economic relations between Ukraine and Japan,” said Finance Minister Sergii Marchenko.

Source: https://investory.news