Ukraine Clarifies Continued Application of PE Provisions under Tax Treaty between Japan and the Soviet Union

Ukraine's State Fiscal Service (SFS) recently published a guidance letter clarifying whether a Japanese resident's supervisory activities carried out at a Ukrainian building site constitutes a permanent establishment (PE). According to the letter, such activities would constitute a PE for a non-resident under Article 14.1.193 of the Tax Code if the activities continue for a period exceeding 6 months. However, where there is a tax treaty between Ukraine and the jurisdiction of the non-resident…