ArmenPress News Agency , Armenia
Monday
Congressmen call on U.S. Secretary of Treasury to renegotiate the
existing, outdated Double Tax Treaty with Armenia
YEREVAN, JANUARY 29, ARMENPRESS. U.S. Representatives David Valadao
(R-CA) and Brad Sherman (D-CA) are collecting signatures on a
bipartisan letter urging their Congressional colleagues to request
that Secretary of the Treasury Steven Mnuchin renegotiate the
existing, outdated Double Tax Treaty with Armenia, an obsolete Cold
War-era accord, recognized today by the U.S. but not Armenia, that was
negotiated with the now defunct USSR more than four decades ago,
ARMENPRESS was informed from the official website of the ANCA.
The Valadao-Sherman letter notes that “The existing Soviet-era treaty
does not reflect the increasing complexity of a globalized world and
the friendship between the American and Armenian peoples,” then calls
upon Secretary Mnuchin to, “prioritize the renegotiation of the double
tax treaty with Armenia.” The letter also underscores that “the
complexities of the international tax structure should not discourage
American and Armenian companies from conducting business with each
other due to double taxation. The need for updated guidelines that
reflect the current state of U.S.-Armenian relations and recently
passed tax reform legislation cannot be understated.”
“We want to thank Representatives Valadao and Sherman for spearheading
Congressional outreach to Secretary Mnuchin in support of an updated,
working U.S.-Armenia Tax Treaty that will – by ending the threat of
double taxation – break down a key barrier to the growth of bilateral
trade and investment,” said ANCA Government Affairs Director Raffi
Karakashian. “We join with them in encouraging their House colleagues
to support the timely negotiation of this mutually-beneficial and long
overdue accord.”
“Dear Secretary Mnuchin,
We are writing you with regards to the current U.S. tax treaty with
the Republic of Armenia. The current tax treaty between the United
States and Armenia is insufficient for the needs of the two countries,
as it was last negotiated with the Union of Soviet Socialist Republics
(USSR) during the Cold War in 1973.
We believe the unrealized benefits of an updated double tax treaty
between Washington and Yerevan necessitate immediate negotiations,
which could be based upon the frameworks of treaties recently ratified
with other nations. In fact, the Armenian Embassy has said it would be
“willing to conclude such an accord on the basis of the latest U.S.
Model Income Tax Convention of 2016.”
The complexities of the international tax structure should not
discourage American and Armenian companies from conducting business
with each other due to double taxation. The need for updated
guidelines that reflect the current state of U.S.-Armenian relations
and recently passed tax reform legislation cannot be understated.
As Members of Congress, we respectfully urge you to prioritize the
renegotiation of the double tax treaty with Armenia. The existing
Soviet-era treaty does not reflect the increasing complexity of a
globalized world and the friendship between the American and Armenian
peoples. Furthermore, it is vital we provide businesses from both
countries the ability and incentive to invest in one another.
Thank you for your service to the United States. We look forward to
your response”, reads the letter of David Valadao and Brad Sherman to
Secretary of the Treasury Steven Mnuchin.
