ArmInfo. The Government of Armenia plans to address the issue of excluding double taxation between Armenia and the US in March 2018 - during the next meeting of the intergovernmental commission. The RA Minister of Finance Vardan Aramyan told journalists on February 11 on the margins of the seminar on "Awareness of mass media representatives".
Vardan Aramyan reminded that the issue is permanently on the agenda of bilateral relations. Recently, the processes in this direction became more active - for the last time during the meeting of the head of the Ministry of Finance of Armenia and the US Ambassador to Armenia. Nevertheless, the solution of the question is still marking time. "We cite our arguments, they are our own, perhaps, on the other hand, we need to approach the solution of this problem," the minister said.
In any case, as the Armenian Ministry of Finance confidently states, the absence of an agreement on the exclusion of double taxation hinders the adoption of positive decisions by economic entities. Such an example has already been fixed, Aramyan said. In particular, the company "Contour global" entered the Armenian market through the Luxembourg company. "It's quite logical that Armenia and Luxembourg have an agreement on the exclusion of double taxation, which, in turn, inspires confidence about what the principles of international taxation should be." If I were at the site of this company, I would have made such a decision myself, - Vardan Aramyan said.
At the same time, as he pointed out, the existence of a new treaty is extremely important if there is a desire to expand bilateral economic ties - trade or investment. Nevertheless, the minister found it difficult to name the terms of the agreement. To date, the head of the Armenian Ministry of Finance is satisfied that his American colleague Stephen Mnuchin responded positively to the initiative, expressing his readiness to discuss the issue. "I think this is a step forward," concluded Vardan Aramyan.
February 7, ArmInfo reported that the US Department of Treasury expressed its readiness to discuss the revision of the Treaty on Avoidance double taxation with Armenia. Earlier, Congressmen Brad Sherman and David Valadou initiated the collection of signatures in the US Congress under an appeal to the head of the Treasury to resume negotiations on the revision of the existing double taxation order between the United States and Armenia. US Treasury Secretary Stephen Mnuchin, "reacting to the growing interest of congressmen regarding the revision of the existing document," noted that the Treasury Department will allocate the appropriate human resources for studying the Treaty on Avoiding Double Taxation with Armenia.
It should be noted that for several years the Armenian lobby of the United States, together with the members of the Armenian support group in the Congress, is trying to achieve the abolition of the double taxation system between Yerevan and Washington. Negotiations started on this account ceased without giving concrete results. The issue of exclusion of double taxation between Armenia and the US has been discussed for over 20 years - since 1994, the Armenian government has raised this issue. In 2000, during the Armenian-American intergovernmental meeting, the issue of the need to conclude a treaty was raised. Since then, although preparatory work is under way to conclude a treaty, in fact, the talks themselves have not started.
Earlier, Armenian Minister of Finance Vardan Aramyan, responding to the question of ArmInfo, recalled that in June 2017, Armenia joined the 15th Action "Organization for the Development of Economic Cooperation in the framework of the program to prevent the destruction of the tax base and the transfer of profit" (BEPS), along with 68 countries around the world, which makes it possible to interpret treaties against double taxation in a uniform way. Becoming a party to the agreement, the country establishes clear rules of the game in the tax field, and raises the reliability of the country from the point of view of the investor.
Armenia has similar agreements with 47 countries, the last agreement was recently signed with Israel. The purpose of these agreements is to eliminate double taxation in foreign trade between two states, avoid tax discrimination with respect to economic entities of the parties, exclude double taxation on property and income, and create a predictable and stable tax environment for business.