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Ukraine Clarifies Withholding on Contractual Fines/Penalties

|Approved Changes|Ukraine
Ukraine

The Ukraine State Fiscal Service recently published guidance letter 1137/6/99-99-15-02-02-15/IPK, which clarifies the tax treatment of fines and penalties paid to a non-resident for failing to fulfill or improper performance of an economic obligation. The letter provides that withholding tax at the standard 15% rate applies on such payments unless an applicable tax treaty provides for a lower …

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