The Ukraine Supreme Court recently issued a decision concerning whether the general domestic rule limiting the deduction of royalties paid to non-residents can apply in light of the non-discrimination provisions of the 1994 income and capital tax treaty with the United States. The case involved the payment of royalties by a Ukraine payer to a U.S. resident, which the Ukraine tax authorities sought to limit as a deduction. Ukraine's general domestic rule limits the deduction of royalty payments made to non-residents to 4% of net income for the previous year plus the amount of royalty income of the taxpayer, with...