Congressman again urged US Treasury Secretary to review the obsolete Treaty on Avoiding Double Taxation with Armenia
The senior member of the Committee on Financial Services of the House of Representatives of the US Congress, Brad Sherman again called on the Minister of Finance Steven Mnuchin to refresh the obsolete Treaty on Avoiding Double Taxation with Armenia.
As reported by the Armenian National Committee of America (ANCA) on July 12, speaking at a committee hearing, the US congressman noted the importance of revising the "outdated Soviet-era treaty" that would eliminate the threat of double taxation, jeopardize the key barrier to investment and promote the growth of a transparent and sustainable bilateral economic cooperation with Armenia. "The Armenian government follows the path of democracy and transparency, and we welcome it," Brad Sherman said.
ANCA Executive Director Aram Hamparyan noted that the new agreement is an absolute necessity, which, in addition to strengthening the friendship of the peoples of Armenia and the United States, will make Armenia more attractive for an investment of business from the United States.
On February 7, 2018, the Department of the US Treasury (the Ministry of Finance) announced its readiness to discuss the issue of revising the Treaty on Avoiding Double Taxation with Armenia. Earlier, Congressmen Brad Sherman and David Valadao initiated the collection of signatures in the US Congress under the appeal to the head of the Treasury to resume negotiations on the revision of the existing double taxation order between the United States and Armenia. The authors of the letter also emphasize that the double taxation order was introduced between the US and the Soviet Union in 1973 and now has lost its relevance, this order should not affect the former Soviet republics, in particular, Armenia. It should be noted that for several years the Armenian lobby of the United States, together with the members of the Armenian support group in the Congress, is trying to achieve the abolition of the double taxation system between Yerevan and Washington. Negotiations started on this account ceased without giving concrete results. The issue of exclusion of double taxation between Armenia and the US has been discussed for over 20 years - since 1994, the Armenian government has raised this issue. In 2000, during the Armenian-American intergovernmental meeting, the issue of the need to conclude a treaty was raised. Since then, although preparatory work is underway to conclude a treaty, in fact, the talks themselves have not started. The double taxation treaty in the US will establish a clear legal basis for investors and individuals who carry out business in both jurisdictions, preventing double taxation and contributing to the expansion of economic relations. The US has agreements to avoid double taxation with many small countries, including Estonia, Jamaica, Latvia, Lithuania, Malta, and Slovenia. Armenia has agreements on avoidance of double taxation with a number of advanced countries, including Austria, Belgium, Canada, China, France, Italy, the Netherlands, Poland, Russia and the United Kingdom (in general, with 47 countries).