The Ukraine State Fiscal Service recently published guidance letter 1053/6/99-99-15-02-02-15/IPK, which clarifies the tax treatment of reinvested dividends. The letter provides that in cases where dividend distributions are used to increase authorized share capital, advance tax on dividend payments (18%) is still due, which is imposed on the payer (advance tax can normally offset corporate tax). Where dividends are paid to a non-resident shareholder, withholding tax also applies, regardless …