U.S., Armenia set to talk Double Tax Treaty at bilateral meeting
PanARMENIAN.Net – The negotiation of a U.S.-Armenia Double Tax Treaty will be on the agenda of the upcoming U.S.-Armenia Economic Task Force meeting, an annual bilateral gathering taking place in Washington, DC on November 19.
The Armenian National Committee of America (ANCA) welcomed the initiative, suggesting that the Administration support American investors and strengthen mutually beneficial U.S.-Armenia economic relations.
“An updated U.S.-Armenia Double Tax Treaty is long overdue and badly needed to establish a clear legal framework for investors and individuals that are conducting business activities in both jurisdictions,” said ANCA Executive Director Aram Hamparian. “Beyond the immediate benefits of preventing double taxation and removing a key barrier to increased investment, such an accord would reinforce the friendship of the American and Armenian peoples, facilitate the expansion of bilateral economic relations, providing Yerevan with greater strategic options and independence in dealing with regional powers.”
Armenia has repeatedly suggested to sign a new agreement to replace a 1973 U.S.-USSR Tax Treaty. This outdated, forty-year-old accord, which Yerevan no longer considers in force, was intended as a limited agreement, even by the standards of the 1970s, between two superpowers.
The lack of a modern treaty, acceptable to all parties, results in a lack of clarity and represents a substantial deterrent for potential U.S. investors, ANCA says. Without an updated Tax Treaty, U.S. businesses will continue to face significant burdens on investment and cross-border services and payments, as well as a lack of transparent information exchange and obstacles to cooperation on tax and related matters.
Prior to the November 19 meeting, the first-ever meeting of the newly created U.S.-Armenia Trade and Investment Framework Agreement Council will take place on November 16 and 17. This inaugural meeting is set to be chaired by the U.S. Trade Representative, Michael Froman, and Armenia’s Minister of Economy Karen Chshmarityan.