Ukraine stimulates investments abroad

The President of Ukraine Victor Yanukovich signed the Law № 5083-VI of 5^th July 2012 that amends the Tax Code of Ukraine. This Law entered into force on 12^th August 2012 (some provisions will enter into force from 1^st January 2013).

One of the most meaningful changes is a change of a tax rate of income tax on dividends of individuals from foreign sources. If earlier this rate was 15% or 17%, the Law introduces 5% rate.

Moreover, the sum of this tax can be reduced by the sum of foreign tax paid during transfer of dividends if the double taxation avoidance agreement exists (for instance, UK, Austria, Switzerland).

Expert’s opinion

The realities of the Ukrainian way of business conducting differ from the Russian one.

While there are problems with sterilization of monetary stock, received from export of carbohydrates and the main money flow is directed from the RF abroad, in Ukraine the problem is reverse – money is needed for elections. And the basic direction of money stream with the use of “schemes” – funds inflow.

The Government of Ukraine made a right decision and turned out of shadow the  considerable amount of money that are imported from abroad. Moreover, the Ukrainian businessmen will benefit from simple investing abroad.