Interlegal Lawyers Consulted a Client on Tax Issues
7 July, 2021
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A Client approached Interlegal seeking consultation on tax matters.
The task for the lawyers was to provide clarifications on the tax consequences for a Ukrainian tax resident receiving dividends from a company registered in Hungary.
Given the actual implementation of BEPS rules into Ukraine’s national legislation, Clients have become more diligent in fulfilling their obligations under the Ukrainian Tax Code.
In response to the Client’s request, the Interlegal team explained all the intricacies of tax legislation and prepared a written consultation on the following issues:
- Technical steps and necessary documents for dividend payments from a Hungarian company.
- Dividend tax rates in Hungary and the tax obligations in Ukraine for the Client regarding the received dividends.
- Liability for non-compliance with tax obligations in Ukraine and the risks of such violations being detected.
Such consultations are valuable for Clients as they help navigate the complexities of international taxation— when income sourced from one country is received by a resident of another country.
The consultation enabled the Client to protect themselves from overpayment of taxes in one country and mitigate risks of penalties for incorrect calculation of tax obligations on dividend income in Ukraine.
