Ukraine, Switzerland sign protocol on avoidance of double taxation

Ukrainian Finance Minister Oksana Markarova and newly appointed Swiss President Ueli Maurer signed the document in the presence of Ukrainian President Petro Poroshenko as part of the World Economic Forum in Davos on Thursday, January 24, the press service of the head of state reported.

"The conclusion of this protocol is aimed at avoiding double taxation of income of individuals and legal entities in the territories of both countries. This will be achieved by the distribution of the right to tax certain types of income between Ukraine and Switzerland depending on their place of origin and by taking into account in tax obligations of the taxpayer of one state the amounts of taxes paid in the territory of another state," the statement said.

It notes that the the provisions of the draft Protocol are in line with the requirements of the OECD Model Tax Convention and the latest OECD standards – the Action Plan on Base Erosion and Profit Shifting (BEPS).