Australia and Ukraine have begun negotiations on a tax treaty that might make it simpler to put money into the war-torn nation as soon as the Russian invasion ends.
Ukraine’s ambassador to Australia Vasyl Myroshnychenko has met with prime Treasury officers in current weeks to push a deal that might finish “double taxation” on one supply of revenue.
Currently, Ukrainians working or doing business in Australia are taxed in each international locations and vice versa. If a tax treaty is just not organised, those that want to put money into the war-torn nation are discouraged from doing so because of the increased tax charge.
Speaking at a Business NSW occasion in Sydney on Friday, Mr Myroshnychenko confirmed that talks had began because of his advocacy.
“Originally, the government was not very keen to start the negotiations as they didn‘t have the negotiating capacity, but I’m happy that they have now decided to launch and commence the negotiations with the Ukrainian finance ministry,” he mentioned.
“Usually, this kind of negotiations take about a year or so, then they have to ratify with both parliaments, but we need to have this double taxation agreement of the avoidance of double taxation to make sure that we can stimulate investments.”
The ambassador has urged the Australian authorities for months to pursue tax reforms to help Ukraine in rebuilding after the Russian battle is over.
Australia has arrange tax treaties that take care of double taxation with greater than 40 international locations, together with Russia.
Treasury rejected a request in November 2022 from Ukrainian business officers to start out negotiations, citing an absence of capability.
“Our tax treaty negotiation capacity is unfortunately fully deployed. Scope does not exist to add Ukraine to the program at this stage,” a senior Treasury official mentioned, The Australian reported in June.
“However, your views on the merits of adding Ukraine to the program will be used by the government to help inform its consideration of Australia’s future tax treaty program when it is next considered.”
Mr Myroshnychenko mentioned a tax treaty was an “opportunity” to assist rebuild Ukraine, however it was additionally an opportunity for Ukrainians to put money into Australia.
“I think you will see some of the Ukrainian investments coming as well and as much as we are looking for certainly investments in Ukraine, but also this tax agreement is very important for the trading services,” he mentioned.
NCA NewsWire has reached out to Treasury for remark.
Source: www.perthnow.com.au
