The DTA between Ukraine and the Russian Federation terminates starting 2023

Ukraine notified Russia of its decision to terminate the double taxation treaty by an official letter dated June 20, 2022. This means that the agreement ceases to be valid from the new year 2023.

Thus, starting from the new year, the general tax rate of 15% will be applied to all income of residents of the Russian Federation received from sources in Ukraine. Also, there will be no benefits for passive income: dividends, royalties, interest. Residents of Ukraine who do business in the Russian Federation will have to pay taxes in two countries.