(a)There is no separate tax on capital gain. Gains are treated as ordinary taxable income.
(b) May be reduced under an applicable double tax treaty.
(c)The corporate income tax law does not explicitly provide for a branch remittance tax. There is an uncertainty regarding application of standard 15% withholding tax on remittance or branch profits. Professional advice should be sought in each specific case.
The Ukrainian tax system is evolving rapidly and tax laws are revised frequently, sometimes several times in a month. Tax law is often poorly worded, which results in ambiguous interpretation and increases the risk of disagreements between the taxpayers ...
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The Ukrainian tax system is evolving rapidly and tax laws are revised frequently, sometimes several times in a month. Tax law is often poorly worded, which results in ambiguous interpretation and increases the risk of disagreements between the taxpayers and tax authorities. Commentators believe that the complexity of the tax system is a problem for taxpayers and also think that the government see taxpayers as a source of cash. According to the constitution, taxes may only be established by laws enacted by parliament. Parliament exercises this prerogative frequently. It is common for more than 20 amendments to be made to the tax laws each year. If the government needs money they can introduce laws retroactively and the judicial system has not been restructured since the Orange Revolution. The State Tax Administration does not technically have the discretion to amend the law, but in practice the tax authority often issues tax clarifications that are not always consistent with the law.
Ukraine has a broad network of tax treaties and rates are reduced to as low as 0% under some treaties for dividends, interest and royalties. Taxpayers do not require confirmation from the tax authorities before claiming relief under a treaty. However, the withholding agent must hold a certificate of residence from the treaty country for the person to whom income is paid.
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