• 1. Freight tax

Freight tax

Withholding tax:  6% of the gross freight earnings (voyage charter  [inward and outward], time charter and bareboat hire) derived from international transport activities of non-residential shipowners and/or operators provided that the freight is payable in Ukraine.

Exemption agreements

Residents of the following countries may benefit from double taxation agreements which reduce or waive the withholding tax.

Country Reduction Date of entry
into force
Date of effect
Algeria   01/07/2004 01/01/2005
Armenia   19/11/1996 01/01/1997
Austria   20/05/1999 01/01/2000
Azerbaijan 100% 03/07/2000 01/01/2001
Belarus   30/01/1995 01/01/1996
Belgium   25/02/1999 01/01/2000
Brazil 1a, 1b, 2, 3 100% 26/04/2006 01/01/2007
Bulgaria   03/10/1997 01/01/1998
Canada 100% 22/08/1996 01/01/1997
China 5 100% 18/10/1996 01/01/2007
Croatia 100% 01/06/1999 01/01/2000
Cuba   20/11/2003 01/01/2004
Cyprus 2, 6 100% 26/08/1983  
Cyprus 3, 4
100%  07/08/2013 01/01/2014
Czech Republic   20/04/1999  01/01/2000
Denmark 100% 21/08/1996 01/01/1997
Egypt   27/02/2002 01/01/2003
Estonia 3 100% 24/12/1996 01/01/1997
Finland   14/02/1998 01/01/1999
France   01/11/1999  01/01/2000
Georgia   01/04/1999 01/01/2000
Germany   04/10/1996 01/01/1997
Greece 100% 26/09/2003 01/01/2004
Hungary   24/06/1996 01/01/1997
Iceland 3 100% 09/10/2008 01/01/2009
India 100% 31/10/2001 01/01/2002
Indonesia 100% 09/11/1998 01/01/1999
Iran 100% 21/07/2001 01/01/2002
Israel 3 100% 20/04/2006 01/01/2007
Italy   25/02/2003 01/01/2004
Japan 6   27/11/1986  
Jordan 100% 23/10/2008 01/01/2009
Kazakhstan   14/04/1997 01/01/1998
Korea, Republic of 3 100% 19/03/2002 01/01/2003
Kuwait   22/02/2004 01/01/2005
Kyrgyzstan   01/05/1999 01/01/2000
Latvia   21/11/1996 01/01/1997
Lebanon 2 100% 06/09/2003 01/01/2004
Libya 1a, 2 100% 31/01/2010 01/01/2011
Lithuania 3 100% 25/12/1997 01/01/1998
Macedonia 100% 23/11/1998 01/01/1999
Malaysia 6   01/07/1988  
 Malta 100% 28/08/2017 01/01/2019
Mexico 100% 06/12/2012 01/01/2013
Moldova   27/05/1996 01/01/1997
Mongolia 3 100% 06/02/2003 01/01/2004
Montenegro 7   29/11/2001 01/01/2002
Morocco 1a, 2 100% 30/03/2009 01/01/2010
The Netherlands   02/11/1996 01/01/1997
Norway 3 100% 18/09/1996 01/01/1997
Pakistan 100% 30/06/2011 01/01/2012
Poland 100% 24/03/1994 01/01/1995
Portugal   11/03/2002 01/01/2003
Romania   17/11/1997 01/01/1998
Russia   03/08/1999 01/01/2000
Saudi Arabia 1a, 2, 3, 4 100% 12/01/2012 01/01/2013
Serbia 7   29/11/2001 01/01/2002
Singapore 100% 18/12/2009 01/01/2010
Slovakia   22/11/1996 01/01/1997
Slovenia   25/04/2007 01/01/2008
South Africa 100% 23/12/2004 01/01/2005
Spain 6   07/08/1986  
Sweden   04/06/1996 01/01/1997
Switzerland   26/02/2002 01/01/2003
Syria   04/05/2004 01/01/2005
Tajikistan   01/06/2003 01/01/2004
Thailand 50% 24/11/2004 10/01/2005
Turkey 100% 29/04/1998 01/01/1999
Turkmenistan 100% 21/10/1999 01/01/2000
United Arab Emirates   09/03/2004 01/01/2005
United Kingdom 3 100% 11/08/1993 01/01/2004
United States 100% 05/06/2000 01/01/2001
Uzbekistan   25/07/1995 01/01/1996
Vietnam 100% 19/11/1996 01/01/1997
Limited treaties (Air and/or sea transportation)
Comprehensive treaty negotiations currently in progress
Signed but not ratified
Czech Republic
  Signed 21/10/2013  
Ireland   Signed 19/04/2013  
Luxembourg   Signed 06/09/1997  
Malaysia
Signed 04/08/2016  
In the process of negotiation or finalised but not signed
Qatar      
Sri Lanka      

Notes

  1. a. Profits from the operation of ships in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

    b. However, if the place of effective management is situated in neither Contracting State, such profits shall be taxable only in the State of which the enterprise is a resident.
  2. If the place of effective management of a shipping enterprise is aboard a ship then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
  3. Profits derived from the international operation of a ship includes profits derived from the rental on a bareboat basis of a ship used in international traffic.
  4. Profits derived from the international operation of a ship includes profits derived from the rental on a full (time or voyage) basis of a ship used in international traffic
  5. This treaty does not apply to residents of Hong Kong SAR, Macao SAR or Taiwan, Province of China
  6. International treaties entered into by the former USSR which remain in force until new treaties are enacted by Ukraine.
  7. Covered under the former Federal Republic of Yugoslavia agreement.

 

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