The 1997 France-Ukraine tax treaty: withholding taxes and key rules

The convention signed in Paris on January 31, 1997, caps withholding tax at 5% or 15% on dividends, 2% or 10% on interest, and 10% on royalties, with exceptions where only the beneficiary's country levies the tax. It covers both income tax and wealth tax. This page presents the articles included in the consolidated text published by the French tax authorities and explains what it does not cover.

A text from 1997, the effects of MLI since 2020

The convention entered into force on November 1, 1999, and applies in France to withholding taxes taxable from January 1, 2000 (Article 30). It superseded the Franco-Soviet convention of October 4, 1985, between France and Ukraine. The Multilateral Convention (MLI) amends it: the MLC has been in force for Ukraine since December 1, 2019, and its effects in France began on January 1, 2020, for taxes withheld at source and on June 1, 2020, for other taxes. At the beginning of the consolidated text, a clause denies a benefit of the convention if one of the main objectives of a tax arrangement was to obtain it.

Status. The agreement is listed in the BOFiP's list of agreements in force as of January 1, 2026 (BOI-ANNX-000306, version of April 29, 2026), without any suspension notice, and remains published in consolidated form on impots.gouv.fr. The BOFiP (BOI-INT-CVB-UKR, version of September 12, 2012) and the administration's webpage publishing the consolidated text make no mention of suspension or termination.

Ukraine: Maximum Detentions and Key Rules

Interests. Paragraph 3 of Article 11 provides for an exemption at source for interest paid or received by a State, its central bank or its local authorities, and for claims or loans "guaranteed, insured or assisted by a Contracting State".

Royalties. For trademarks and designs or models, the tax reserved for the beneficiary only applies after twelve months following entry into force; during this period, the ceiling is 5 % (article 12 § 3 b).

Residences, buildings and capital gains

For an individual resident in both States, Article 4, paragraph 2, lists the following criteria in order: permanent home, center of vital interests, habitual residence, nationality, and then the agreement of the competent authorities. Income from real estate is taxable where the property is located (Article 6). For capital gains, Article 13 provides:

• buildings: the current situation; ;
• securities of companies of which more than 50% of the value comes from real estate located in the other State, at any time during the 365 days preceding the transfer: that other State; ;
• the other gains: the sole State of residence of the transferor.

Salaries, pensions, wealth

The 183-day rule applies to any period of twelve consecutive months, not the calendar year. The employer must not be a resident of the other State, and the remuneration must not be borne by a permanent establishment or fixed base there. For pensions, Article 18 reserves taxation to the State of residence for pensions and annuities linked to previous employment; for social security pensions paid to a resident of the other State, Article 18, paragraph 2, refers to the "French minimum pension." Wealth follows Article 22: real estate in the State where it is located, other assets in the State of residence; unlisted shares or rights whose value derives "for the most part" from real estate located in a State are also taxable in that State (Article 22 does not set a specific threshold). The text refers to the wealth tax; its application to the IFI (French real estate wealth tax) is not addressed here.

Avoiding double taxation

Article 23 provides, on the French side, for a tax credit against French tax, up to the amount of the corresponding French tax; the breakdown between its paragraphs is not detailed here. Ukraine grants a credit for French tax, up to the amount of the corresponding Ukrainian tax. The mutual agreement procedure (Article 25) may be initiated within three years of the first notification.

What this page does not cover

Ukrainian taxes, the IFI (French wealth tax), inheritances and gifts, the exact allocation of Article 23 credits and permanent establishment are not detailed.

What changes depending on your situation

• Your residence as defined in Article 4, and that of the company making the payment.
• The nature of the income and the level of ownership.
• The number of days spent in each state over twelve consecutive months.
• Ukrainian law, to be validated with a local professional.