On October 30, 2019, the Protocol on Amendments to the Agreement on Double Taxation Avoidance of Ukraine with the Republic of Cyprus was ratified.

In particular, the Protocol to the Agreement between Ukraine and the Republic of Cyprus provides for a reduction in the rate of dividend tax – from 15% to 10% for all cases, except for those where the dividend holder owns at least 20 percent of the capital of the company paying the dividend or investing in the acquisition shares or other rights of the company equivalent to at least 100,000 euros – in this case the rate remained unchanged – 5%.

The protocol also provides for an increase in the interest rate from 2% to 5%, and adds provisions for taxation of the proceeds of the alienation of shares that receive more than 50 percent of their value directly or indirectly from real estate.