The Verkhovna Rada of Ukraine on November 12 ratified the Convention between Ukraine and Australia on the elimination of double taxation of income and prevention of tax evasion. 238 people's deputies voted for the relevant bill No. 0382.

This was reported by the Ministry of Finance of Ukraine.

The document, signed on October 16, 2025 in Washington, establishes taxation rules for income of residents of both states. It aims to prevent situations where the same income is taxed simultaneously in Ukraine and Australia.

The Convention will apply to both enterprises operating in two countries and citizens receiving income from employment, business, investments or pension payments. In particular, the document provides for the possibility of crediting taxes paid in the other state, in accordance with established rules.

Separately, maximum tax rates for certain types of income in the state of their origin are specified:

  • dividends - 5% subject to holding at least 10% of votes in the company paying dividends, or 15% in other cases;
  • interest - 5% for financial institutions and 10% for other recipients;
  • royalties - 10%.

These rates will apply only subject to fulfillment of the conditions provided by the Convention, in particular regarding tax residence and beneficial ownership of income received.

For enterprises, the document also establishes rules for taxation of profits if there is a permanent establishment in another state. For employees, distribution of tax rights is provided depending on the place of work and other circumstances.

The Convention provides for exchange of information between tax authorities of Ukraine and Australia, cooperation in tax collection and dispute resolution mechanisms regarding the application of tax rules.

At the same time, ratification by the Verkhovna Rada does not yet mean that the new rules have come into effect. The Convention will enter into force after Australia completes the necessary domestic procedures and exchange of appropriate notifications through diplomatic channels. The specific date of entry into force has not yet been announced.

According to materials: Ministry of Finance of Ukraine, Verkhovna Rada of Ukraine