On 8 November 2012, Cyprus and Ukraine signed an income tax treaty, in Nicosia. Once in force and effective, the new treaty will replace the Cyprus - Former USSR Income and Capital Tax Treaty (1982), in relations between Cyprus and the Ukraine. In contrast to the current income and capital tax treaty, the  treaty provides for the following withholding tax rates: -   a withholding tax on dividends of 5%; -   a withholding tax on royalties of 5%/10% depending on the nature of royalties; and -   a withholding tax on interest of 2%.