Ukraine and Australia sign convention to eliminate double taxation

According to the Ministry of Finance of Ukraine, the document was signed by Ukrainian Finance Minister Sergii Marchenko and the Treasurer of Australia Jim Chalmers.

The convention establishes clear and equitable rules to ensure that income earned by residents of both countries is not taxed twice. For businesses and individuals, this means protection against double taxation, greater transparency, and more favorable conditions for trade and investment.

“Ukraine continues to work on enhancing the transparency and stability of its tax environment. The Convention establishes clear rules for Ukrainian and Australian companies operating in both markets. It reduces the tax burden, removes barriers to investment, and promotes the development of bilateral trade,” Marchenko emphasized.

The agreement outlines how taxing rights over certain types of income will be allocated between the two countries. Dividends will be taxed at a rate of 5% if the receiving company owns at least 10% of the paying company’s capital. Interest will be taxed at 5% for financial institutions and 10% in other cases. Royalties will be taxed at a rate of 10%.

The convention also includes provisions aligned with modern OECD standards, including measures to prevent tax abuse, facilitate exchange of tax information, and resolve disputes between the two governments.

As previously reported by Ukrinform, a new financial instrument to support Ukraine — the Reparations Loan, which involves the use of frozen Russian assets — is expected to become a key source of funding for Ukraine in 2026–2027.

Photo credit: Ministry of Finance