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Ukraine Clarifies Withholding on Contractual Fines/Penalties Under Tax Treaty with Switzerland

|Treaty Development|Ukraine-Switzerland
Ukraine-Switzerland

The Ukraine State Fiscal Service recently issued a guidance letter concerning the tax treatment of fines and penalties paid by a Ukraine resident to a Swiss resident company for failing to fulfill or improper performance of a contractual obligation. The letter notes that under the Ukraine Tax Code, such fines and penalties are treated as Ukraine source income of the non-resident as other income…

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