The Verkhovna Rada of Ukraine ratified the intergovernmental convention on the elimination of double taxation with Japan, which was signed in February 2024. This decision opens up new opportunities for economic cooperation between the two countries.

This is reported by "Economichna Pravda" with reference to the document card on the website of the Verkhovna Rada. The Law "On the Ratification of the Convention between the Government of Ukraine and the Government of Japan on the Elimination of Double Taxation Regarding Income Taxes and the Prevention of Tax Evasion and Avoidance and the Protocol thereto" was adopted by the Parliament of Ukraine.

The convention establishes the procedure for the distribution of the rights to tax incomes received by residents of one state in another. It limits the right of the country where the source of income is located to tax dividends (5%), interest (10% and 5%) and royalties (5%).

The agreement also provides for agreements on the exchange of tax information between the relevant authorities of Ukraine and Japan. This will contribute to the transparency of financial transactions and reduce the risks of tax evasion. In addition, there are prescribed mechanisms by which companies can appeal the assessed taxes if they do not meet 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 investments and the strengthening of economic relations between Ukraine and Japan," said Finance Minister Serhiy Marchenko. This is an important step for the development of bilateral economic ties.

The Convention and its Protocol will contribute to the avoidance of double taxation, the prevention of tax evasion and the mutual reduction of tax barriers to foreign investment and trade. This creates more favorable conditions for businesses and investors of both countries, which should have a positive impact on their economies.

The elimination of double taxation between Ukraine and Japan is an important step in strengthening international economic relations and will contribute to the attraction of investments, the development of trade and the creation of new opportunities for entrepreneurs.