Ukraine Clarifies Beneficial Treaty Rate Where Shareholding Percentage Changes from When Payment Decision is Made and When Dividends Are Paid

The Ukraine State Fiscal Service recently issued a guidance letter concerning the applicable withholding tax rate on dividends in a case where a beneficial owner sold its shares after the dividend payment decision was made, but before the dividends were actually paid. The case involved a UK shareholder that held 20% of the shares in a Ukraine closed corporate investment fund.

The letter notes that under domestic law, dividends paid by the fund would be subject to 15% withholding tax, but und…