United Arab Emirates

Convention between the United Arab Emirates and Ukraine for the avoidance of double taxation dated 22 January 2003 entered into force on 9 March 2004 (ratified by the Law of Ukraine # 1013 dated 19 June 2003).

Article 10 (Dividends):

Paragraph 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other Contracting State.

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 beneficial owner of the dividends is a company (other than a partnership) which holds at least 10 % of the capital of the company paying dividends the tax so charged shall not exceed 5 % of the gross amount of the dividends.

Paragraph 3. Notwithstanding the provisions of paragraphs 1 and 2, dividends paid by a company which is a resident of a Contracting State shall be taxable only in the other Contracting State if the beneficial owner of the dividends is that other State itself, a political subdivision or local authority or the Central Bank thereof, or (in the case of the United Arab Emirates) Abu Dhabi Investment Authority, or any other such government financial institution as may be agreed from time to time between the Contracting States.

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 is the beneficial owner of the interest the tax so charged shall not exceed 3 % of the gross amount of the interest. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation.

Paragraph 8. Notwithstanding the provisions of paragraph 2 of this Article, interest arising in a Contracting State shall be exempt from tax in that State if it is received and really [held] by:

(a) the Government of the other Contracting State or its political subdivision, or local authority, or the Central Bank thereof;

(b) in the case of the United Arab Emirates -- Abu Dhabi Investment Authority and Abu Dhabi Fund for Economic Development;

(c) any other governmental financial institution, as may be agreed upon from time to time between the Contracting States.

Paragraph 9. Notwithstanding the provisions of Article 7 of this Agreement and paragraph 2 of this Article, interest arising in a Contracting State paid to and [held] by a resident of the other Contracting State shall be exempt from tax in the first-mentioned State if it was paid in respect of loan made, guaranteed or insured, or in respect of any other debt-claim or credit guaranteed or insured on behalf of the other Contracting State by its authorized organ.

Paragraph 10. If the Government of a Contracting State participates in a loan indirectly through an agent or otherwise, the provisions of paragraph 9 shall apply proportionally to the participation of that Government in such loan. The participation shall be evidenced by a certificate to this effect by the competent authority of the Contracting 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 then the tax so charged shall not exceed 10 % of the gross amount of royalties in the meaning of paragraph 4, sub-paragraph (a) of this Article.

Paragraph 3. Notwithstanding the provisions of paragraph 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 the royalties are the payments in the meaning of paragraph 4, subparagraph (b) of this Article.

Paragraph 4. The term "royalties" as used in this Article means payments of any kind received as a consideration:

(a) for the use of, or the right to use, any copyright of literary or artistic work (including cinematograph films, and films or tapes for radio or television broadcasting); and

for the use of, or the right to use, any copyright of scientific work, patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.