Interlegal consulting upon risks of cooperation with non-residents in the process of rendering services at the Ukrainian sea ports

A Client applied to Interlegal for legal advice upon cooperation with foreign companies.

Its operating scheme involves Ukrainian companies cooperating with foreign ones – in particular, with Maltese company.

The Client’s vital issues concerned taxation of the company’s operation in Malta and tax on dividends received by Ukrainian residents. Maltese legislation provides an option to return part of the paid tax on income (6/7 from 35%) to the company shareholders.

Interlegal lawyers provided a complex legal advice upon the following issues:

1. options to minimize tax effects under payment of dividends in favor of Maltese company shareholders;

2. risk mitigation upon recognizing foreign company representative offices in Ukraine;

3. risks of detecting foreign companies acting as CFC for Ukrainian residents.