Interest income of non-residents on deposits with the Bank is subject to non-resident income tax at the rate of 15%, unless otherwise provided by the Treaties for the avoidance of double taxation between Ukraine and investor’s country of residence (hereinafter - Treaties).
The Bank, as a tax agent, has the right to apply tax exemption or reduced tax rate provided by the Treaties if a non-resident is (1) the beneficial owner of income and (2) the resident of a country which a Treaty is concluded with.
To benefit from an income tax exemption or tax reduction a non-resident shall submit to the Bank:
If the above documents are not provided, a non-resident income tax at the rate of 15% will be withheld at the time of effecting interest payment.
Income of non-residents under transactions with Ukrainian Government Bonds, Municipal Bonds and other bonds under the state or municipal guarantee are not subject to non-resident income tax except for income of residents of countries from the list approved by the Cabinet of Ministers of Ukraine from sale or other disposal of such bonds.
If a non-resident is registered in a country included in the list approved by the Cabinet of Ministers of Ukraine, non-resident income tax on profit from sale or other disposal of Ukrainian Government Bonds, Municipal Bonds or other bonds under the state or municipal guarantee will be withheld in the amount of 15% at the time of effecting such payment. Such profit is defined as positive difference between the proceeds from the sale and the documented costs of purchase. If a non-resident does not provide to the Bank documents confirming the costs of purchase, the whole amount payable to a non-resident from the sale or other disposal will be the base for calculation of non-resident income tax.
International Business Team