Germany

Agreement between Germany and Ukraine for the avoidance of double taxation dated 3 July 1995 entered into force on 4 October 1996 (ratified by the Law of Ukraine # 449 dated 22 November 1995).

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) 10 % of the gross amount of the dividends in all other cases.

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:

(a) 2 % of the gross amount of the interest paid

(aa) in connection with the sale on credit of any industrial, commercial or scientific equipment,

(bb) in connection with the sale or rendering on credit of any merchandise or service by one enterprise to another enterprise, or

(cc) on any loan of whatever kind granted by a bank or any other financial institution;

(b) 5 % of the gross amount of interest in all other cases.

Paragraph 3. Notwithstanding the provisions of paragraph 2

(a) interest arising in Ukraine and paid in consideration of a loan guaranteed by Hermes-Deckung or paid to the Government of the Federal Republic of Germany, the Deutsche Bundesbank, the Kreditanstalt fЃr Wiederaufbau or the Deutsche Investions- und Entwicklungsgesellschaft shall be exempt from Ukrainian tax;

(b) interest arising in the Federal Republic of Germany and paid to the Government or to the Central Bank of Ukraine shall be exempt from German tax.

Article 12 (Royalties):

Paragraph 2. Royalties may be taxed in the Contracting State in which they arise and in accordance with the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 5 % of the gross amount of the royalties within the meaning of paragraph 4 subparagraph (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 taxed only in the other Contracting State if such resident is the beneficial owner of the royalties and if the royalties are payments within 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

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