Convention between the Netherlands and Ukraine for the avoidance of double taxation dated 24 October 1995 entered into force on 2 November 1996 (ratified by the Law of Ukraine # 332 dated 12 July 1996).
Article 10 (Dividends):
Paragraph 2. Dividends may be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed:
(a) 5% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 20% of the capital of the company paying the dividends;
(b) 15% of the gross amount of the dividends in all other cases.
Paragraph 3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State shall be taxable only in the other Contracting State, in the case the recipient, being the beneficial owner of the dividends, is a company (other than a partnership):
(i) which holds directly at least 50 % of the capital of the company paying the dividends and provided that an investment of at least 300,000 United States dollars or its equivalent in the national currencies of the Contracting States has been made in the capital of the company paying the dividends, or
(ii) whose investment in the capital of the company paying the dividends is guaranteed or insured by the Government of the other Contracting State, the central bank of the other Contracting State or any agency or instrumentality (including a financial institution) owned or controlled by that Government.
Article 11 (Interest):
Paragraph 2. Interest may be taxed in the Contracting State, in which it arises and according to the laws of that State, but if the recipient of the interest is the beneficial owner of the interest the tax so charged shall not exceed:
(a) 2 % of the gross amount of interest, in the case of:
(i) interest arising in a Contracting State and paid on any loans of whatever kind granted by a bank or any other financial institution of the other Contracting State, including investment banks and savings banks, and insurance companies; or
(ii) interest arising in a Contracting State and paid by the purchaser of machinery and equipment to the seller of the machinery and equipment in connection with a sale on credit;
(b) 10 % of the gross amount of the interest in all other cases.
Paragraph 3. Notwithstanding the provisions of paragraph 2 of this Article:
(a) interest arising in a Contracting State and paid in respect of a bond, debenture or other similar obligation of the Government of that State, the central bank of that State, a political subdivision or local authority thereof shall be exempt from tax in that State;
(b) interest arising in a Contracting State and paid in respect of a bond, debt-claim or other similar obligation to the Government of the other Contracting State, the central bank of the other Contracting State, a political subdivision or local authority thereof shall be exempt from tax in the first-mentioned State; and
(c) interest arising in a Contracting State and paid in respect of loans guaranteed or insured by the Government of the other Contracting State, the central bank of the other Contracting State or any agency or instrumentality (including a financial institution) owned or controlled by that Government, shall be exempt from tax in the first-mentioned State.
Article 12 (Royalties):
Paragraph 2. Royalties may be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 10 % of the gross amount of the payments referred to in paragraph 5, subparagraph (a) of this Article.
Paragraph 3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in the other Contracting State if such resident is the beneficial owner of the royalties and if the royalties are payments referred to in paragraph 5, subparagraph (b) of this Article.
Paragraph 5. The term "royalties" as used in this Article means payments of any kind received as a consideration for:
(a) the use of, or the right to use any copyright of literary or artistic work (including cinematograph film and films or tapes for radio or television broadcasting); and
(b) the use of, or the right to use any copyright of scientific work, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.
