— Treasury Nominee Commits to Address “Barriers to U.S.-Armenia Economic Relations”; State Department Official Testifies that Tax Treaty is “Under Active Consideration”
WASHINGTON, DC – David Kautter, the incoming Assistant Secretary of the Treasury for Tax Policy, expressed willingness, during his Senate confirmation process, to engage with Congressional stakeholders and professional Treasury Department staff regarding a U.S.-Armenia Double Tax Treaty, an economic accord, backed by the Armenian National Committee of America (ANCA), aimed at removing barriers to the growth of bilateral trade and investment.
Kautter’s comments were reinforced earlier today by Acting Assistant Secretary of State John Heffern, who, in response to questions posed by Rep. Brad Sherman (D-CA) during a Congressional hearing, testified that a U.S.-Armenia Double Tax Treaty is “under active consideration” by the Department of State.
Video from today’s hearing:
Kautter’s nomination, which was unanimously approved by the Senate Finance Committee on July 18th, has been sent to the full Senate. During his confirmation timeframe, he was asked about a U.S.-Armenia Tax Treaty by Senator Bob Menendez (D-NJ), who sits on the Finance Committee, and Representative Brad Sherman, a member of the House Foreign Affairs Committee, who is widely recognized as a top Capitol Hill expert on international tax policy. Responding to Congressional inquiries, Kautter committed, if confirmed, to study how to “adequately address any impediments to U.S.-Armenia economic relations.” In response to separate questions, he specifically expressed his willingness to examine the “pros and cons of a Tax Treaty with Armenia,” and, more broadly, to “learn more about the barriers to U.S.-Armenia economic relations.”
Heffern, who served as Ambassador to Armenia from 2011 to 2014, is widely credited for the pivotal role he played in supporting Armenia’s aid to trade transition, including through a variety of bilateral initiatives, including the U.S.-Armenia Trade and Investment Framework Agreement finalized in May of 2015.
“We are gratified to see that both our Treasury and State departments are increasingly open to negotiating a U.S.-Armenia Double Tax Treaty, a long overdue bilateral accord that will, once ratified, remove a major barrier to the further growth of the U.S.-Armenia economic relationship,” said ANCA Executive Director Aram Hamparian. “We look forward to continuing our work with stakeholders in Washington and Yerevan to pursue mutually-beneficial, job-creating initiatives across IT, healthcare, tourism, finance, education, and other sector-specific drivers of economic growth.”
The current treaty governing double taxation issues between the United States and Armenia is the 1973 U.S.-U.S.S.R. Tax Treaty, an outdated forty year-old accord. The lack of a double tax treaty between the two countries creates legal uncertainty that deters potential U.S. investors, diverts investment flows and disadvantages American businesses seeking to invest in the Republic of Armenia.
Photo: Incoming Assistant Secretary of the Treasury for Tax Policy David Kautter and Acting Assistant Secretary of State John Heffern discuss U.S.-Armenia Double Tax Treaty
Ամերիկայի Եւ Հայաստանի Միջեւ Տնտեսական Գործակցութիւնը Սերտացնելու Նպատակով Քննարկումներ Քոնկրեսի Մէջ
(ԱՍՊԱՐԷԶ) ՈՒԱՇԻՆԿԹԸՆ.- Ամերիկայի Հայ Դատի յանձնախումբը կը տեղեկացնէ, թէ Յուլիս 25ին, Քոնկրեսին մէջ քանի մը առիթներով քննարկութեան նիւթ դարձած է Միացեալ Նահանգներու եւ Հայաստանի միջեւ տնտեսական գործակցութիւնը սերտացնելու կարեւորութիւնը։
Արդարեւ, Միացեալ Նահանգներու գանձարանի տուրքերուն հարցերով փոխնախարար նշանակուած Տէյվիտ Քոթըր, Ծերակոյտին մէջ իր վկայութեան ընթացքին ընդունած է, որ Ամերիկայի եւ Հայաստանի միջեւ կրկնակի տուրքերէ խուսափելու համաձայնագիր մը պէտք է մշակուի՝ զարկ տալու համար երկկողմանի առեւտրական յարաբերութիւններուն։
Ան այս հաստատումը կատարած էր՝ պատասխանելով ծերակուտական Ռապըրթ Մենենտեզի հարցումին։
Աւելի կանուխ, արտաքին գործոց նախարարի օգնականի պաշտօնակատար Ճան Հեֆըրն, պատասխանելով քոնկրեսական Պրետ Շըրմընի մէկ հարցումին՝ յայտնած էր, թէ նման համաձայնագիր մը արդէն իսկ կը քննարկուի արտաքին գործոց նախարարութեան կողմէ։
Հեֆըրն, որ Հայաստանի մօտ Միացեալ Նահանգներու դեսպան եղած է նախապէս, նաեւ ընդունած էր, որ մեծ ներուժ կայ երկու երկիրներու տնտեսական յարաբերութեանց մէջ, եւ աւելցուցած, թէ մարդասիրական օգնութիւն տրամադրելու փոխարէն՝ Միացեալ Նահանգները կը փափաքի Հայաստանի հետ առեւտրական յարաբերութիւնները զարգացնել: Ան նաեւ նշած էր, որ 2015ի Մայիսին կնքուած հայ-ամերիկեան առեւտուրի եւ ներդրումներու պայմանագիրը արդէն իսկ կը նպաստէ երկու պետութիւններուն միջեւ տնտեսական յարաբերութիւններու զարգացման:
Armenia’s Minister of Finance Highlights Advantages of U.S.-Armenia Double Tax Treaty
ANCA’s Aram Hamparian: ‘Minister Aramyan’s Remarks Today Speak to the Heart of This Matter’
(ARMENIAN WEEKLY)—On July 27, Armenia’s Minister of Finance Vardan Aramyan addressed the recently proposed plan to revise the Double Tax Treaty between the United States and Armenia, highlighting the advantages of the deal as a major stimulus for businesses.
Speaking to reporters after the cabinet meeting, Aramyan noted that the issue has always been on the Armenian Government’s agenda.
“Armenia has quite recently signed an agreement with Israel [to abolish] double taxation. That signals a very important moment for us. We had so far signed agreements ruling out double taxation with 46 countries. So Israel is now the 47th,” Aramyan said, according to Yerevan-based Tert.am.
Aramyan said he expects the agreement to inspire businesses with confidence by clarifying certain controversial points, but did not point to specific timeframes for signing the deal with the U.S.
“I think we have more work to do with our U.S. partners, as the issue has been under consideration for 20 years if my memory doesn’t fail me,” Aramyan added.
The Minister also noted that an effective interstate legislation regulating the procedures now is an earlier agreement signed between the U.S. and former Soviet republics. “We don’t think that it is actual any longer given that the Organization for Economic Cooperation and Development recently elaborated general frameworks as part of the conventions ruling out double taxation. We are confident that the [document] in effect is not in line with its provisions, as Armenia is not a legal successor of the USSR. Our counter-argument is our strong belief that the absence of any agreement ruling out double taxation may prevent entrepreneurs from making decisions independently to attract mutual investments, i.e. – to Armenia, and from Armenia to the U.S. Any entrepreneur needs to have the confidence that the taxation policies are quite understandable and stable,” he added.
“Minister Aramyan’s remarks today speak to the heart of this matter,” said Armenian National Committee of America (ANCA) Executive Director Aram Hamparian in his comments to the Armenian Weekly. “A new U.S.-Armenia Double Tax Treaty will make Armenia more attractive to American investors, removing unnecessary barriers to the growth of bilateral economic relations,” added Aram Hamparian.
Hamparian went on to say that the ANCA welcomes Aramyan’s leadership and, more broadly, the growing momentum among stakeholders in Washington and Yerevan for a modern Double Tax Treaty and “other forward-leaning initiatives to unleash the potential of U.S.-Armenia commerce.”
David Kautter, the incoming U.S. Assistant Secretary of the Treasury for Tax Policy, expressed willingness, during his Senate confirmation process, to engage with Congressional stakeholders and professional Treasury Department staff regarding a U.S.-Armenia Double Tax Treaty, an economic accord backed by the ANCA, aimed at removing barriers to the growth of bilateral trade and investment.
Kautter’s comments were reinforced on July 26 by Acting Assistant Secretary of State John Heffern, who, in response to questions posed by Rep. Brad Sherman (D-Calif.) during a Congressional hearing, testified that a U.S.-Armenia Double Tax Treaty is “under active consideration” by the Department of State.