Article 29. ENTRY INTO FORCE

This Article provides the rules for bringing the Convention into force and giving effect to its provisions. Paragraph 1 provides for the ratification of the Convention by both Contracting States and the prompt exchange of instruments of ratification at Kiev.

Paragraph 2 provides that the Convention will enter into force on the date on which instruments of ratification are exchanged. The Convention will have effect with respect to taxes withheld at source on dividends, interest and royalties for amounts paid or credited on or after the first day of the second month following the month in which the Convention enters into force. For example, if the Convention were to enter into force on July 10, 1994, the withholding rates on dividends, interest and royalties would be reduced (or eliminated) for amounts paid on or after August 1, 1995. For all other income taxes, the Convention will have effect for any taxable period beginning on or after January 1 of the year following entry into force.

The 1973 Convention will cease to have effect when the provisions of this Convention take effect in accordance with paragraph 2.

Paragraph 4 provides that a person entitled to the benefits of the 1973 Convention may elect to continue to apply that Convention for the first taxable year in which this Convention would otherwise have effect. This is a taxpayer-by-taxpayer election, i.e., a taxpayer may not elect the 1973 Convention for one purpose and the Convention for another purpose.