By Alex Cooper
US Congressman David Valadao has urged Treasury Secretary Steven Mnuchin to renegotiate the US tax treaty with Armenia with a view to ending double taxation currently imposed on businesses in both countries.
In a letter submitted to Mnuchin on February 6, 2018, Valadao said 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 US-Armenian relations and recently passed tax reform legislation cannot be understated.”
The letter states: “The current tax treaty between the US 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.”
Valadao explained: “American and Armenian businesses have close ties and it’s time to end the double taxation currently imposed on businesses in both nations. By renegotiating our tax treaty with Armenia, we can continue to strengthen our relationship with a close ally while encouraging trade and investment in our great nations.”
Armenian National Committee of America (ANCA) Government Affairs Director Raffi Karakashian welcomed the move, noting that an “updated US-Armenia tax treaty will – by ending the threat of double taxation – break down a key barrier to the growth of bilateral trade and investment.”
Valadao represents the 21st Congressional District, which includes Kings County and portions of Fresno, Tulare, and Kern Counties. The letter was signed by an additional thirty Members of Congress.
The author is with TP News