Brian Hayes, Minister of State at the Department of Finance, is in Kiev today (Friday, 19-April-2013) to sign a Double Taxation Agreement (DTA) between Ireland and Ukraine.
Minister Hayes’ busy itinerary will take in high-level discussions with the Ukrainian Prime Minister, Deputy Prime Minister and the Minister for Finance.
His meeting with Finance Minister Yuriy Kolobov will focus on advancing Ireland-Ukraine economic ties via the Double Taxation Agreement.
"I am looking forward to a productive meeting with Minister Kolobov. Our meeting last year was very constructive and today’s signing (of the DTA) will enhance economic and trade ties between our two countries. It also reflects the on-going Government priority to expand trade and investment ties across the globe to support Ireland’s economic recovery."
"Currently our bilateral trade with Ukraine is about €70 million, this is a figure I hope to see increase on the back of today’s signing. This is the 69th comprehensive double taxation agreement Ireland has signed. These instruments are key to assist Irish companies expand into new markets. All avenues to increase trade opportunities must be explored to support job creation back home."
Strengthening economic and trade relations between countries is central to the Department of Finance’s efforts to expand our tax treaty network. Additional treaties are in the pipeline and the Department will continue to expand Ireland’s tax-treaty base in a number of key jurisdictions.
Discussions with Minister Kolobov will also touch on the IBRC loan recovery efforts to assert the Bank’s legal position before the Ukrainian Court. Minister Hayes stressed...
"The importance to support the ongoing IBRC and diplomatic efforts to recover assets of considerable value. The process to recover these assets for the Irish taxpayer has been long and difficult. I am hopeful we can soon bring this sorry saga to a successful conclusion."
Minister Hayes' discussions with Prime Minister Azarov will include bilateral issues and aspects of Ireland’s Presidency of the European Union.
Note for EDITORS
This DTA represents an important step in boosting trade relations between Ireland and Ukraine.
The purpose of a double taxation agreement is, as its title implies, to avoid double taxation and prevent fiscal evasion. Double taxation arises when the same income or capital gain is taxed by two jurisdictions. This normally occurs where income arises in one country and is paid to a resident of another country.
Double taxation agreements seek to allocate taxing rights to one or other country, or where the income or gain remains taxable in both, to provide that the country of residence of the taxpayer will either exempt the foreign income from tax or will grant credit against its own tax for tax paid on the same income or gain in the other country.
Double taxation agreements normally also reduce or eliminate source taxes on passive income flows such as dividends, interest and royalties which arise in one country and are paid to a resident of the other.
Double taxation agreements also include non-discrimination provisions, which protect nationals of each country from discriminatory tax provisions in the other. They also provide for the exchange of information between the tax authorities of both countries for the purposes of counteracting tax evasion, in relation to the Agreement itself or the national tax laws of the two countries concerning the taxes covered.