On 8 August 2019, Ukraine deposited its instrument of
ratification of the Multilateral Convention to Implement Tax Treaty
Related Measures to Prevent Base Erosion and Profit Shifting (MLI).
This means that the MLI will enter into force in Ukraine on 1
December 2019. However, its entry into effect depends on particular
MLI provisions, as well as on the MLI’s entry into force for
Ukraine’s counterparties under particular double taxation
agreements (DTA).
The MLI was designed to modify DTAs in force and Ukraine has
selected to apply it to its 76 DTAs. In particular, the MLI
introduces a number of changes and some new concepts into the DTA
system of Ukraine. Among them there are the principal purpose test,
broadening the permanent establishment definition,
anti-fragmentation rules, modified mutual assistance procedure
rules as well as modified rules for the capital gains taxation.
