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 in connection with business activities in Ukraine and subject to withholding at the standard 15% rate. However, the terms of an applicable tax treaty must also be considered. As provided in paragraph 1 of Article 21...