ArmenPress News Agency , Armenia Monday Congressmen call on U.S. Secretary of Treasury to renegotiate the existing, outdated Double Tax Treaty with Armenia YEREVAN, JANUARY 29, ARMENPRESS.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their Congressional colleagues to request that Secretary of the Treasury Steven Mnuchin renegotiate the existing, outdated Double Tax Treaty with Armenia, an obsolete Cold War-era accord, recognized today by the U.S. but not Armenia, that was negotiated with the now defunct USSR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.