FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department today announced that a new income tax treaty and protocol with Ukraine entered into force on June 5, 2000. The treaty, to which the U.S. Senate gave advice and consent to ratification in 1995, replaces the existing tax treaty between the United States and Ukraine, which was signed in 1973 with the former Soviet Union and remains in force for many of the former Soviet Republics.

On June 5, the United States and Ukraine exchanged instruments of ratification, the final step required to bring the treaty into force. The treaty applies, with respect to taxes withheld at source, in respect of amounts paid or credited on or after August 1, 2000 and, with regard to other taxes, in respect of taxable years beginning on or after January 1, 2001.