Main updated protocol provisions:

Dividends

1. Withholding tax at 5% on gross 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 and has invested the equivalent of at least EUR 100,000 in the acquisition of the shares or other rights of the company.

2. Withholding tax at 10% on gross dividends will apply in all other cases (replacing the previous rate of 15%).

Interest

Withholding tax on gross interest of 5% will apply (replacing the previous rate of 2%).

Capital Gains

Capital Gains derived by a resident of a State from the alienation of shares deriving more than 50% of their value directly or indirectly from immovable property situated in the other State, may be taxed in that other State with certain exceptions. Any other disposal of shares is taxed in the State of the alienator provided that it is subject to tax in that State.

Most Favoured Nation clause

The protocol provides that if, after 2nd July 2015, Ukraine agrees, under a Treaty with another country, to grant an exemption from tax in Ukraine on dividends, interest or royalty payments arising in Ukraine, or to apply lower rates of tax in Ukraine to such payments than those provided by the respective Articles of the Treaty, or to include more favorable provisions in Article 13 “Capital Gains” , then the States have the right to re-negotiate these Articles with a view to applying such exemption or lower rates to this Treaty.