The Ukraine State Fiscal Service recently issued a guidance letter concerning the tax treatment of deemed dividends for non-arm's length payments by a Ukraine resident to a French resident company. In general, where payments in controlled transactions exceed the arm's length amount under the transfer pricing rules, the excess amount is deemed as (equated to) a dividend payment, which would be subject to 15% tax under domestic rules. However, the terms of an applicable tax treaty must also be considered. In the case of deemed dividends paid to a French resident, Article 10 (Dividends) of the 1997 France-Ukraine tax treaty...