Wednesday, February 28 2018 12:50
Naira Badalian

ANCA has presented to the head of the US Finance Ministry the advantages of concluding a new Agreement on avoidance of double taxation with Armenia

ANCA has presented to the head of the US Finance Ministry the  advantages of concluding a new Agreement on avoidance of double  taxation with Armenia

ArmInfo. Representatives of  the Armenian National Committee of America (ANCA) with the head of  the US Ministry of Finance discussed prospects of concluding a new  Agreement on avoidance of double taxation with Armenia 

ANCA reports that recently, during a meeting of the International  Affairs Council in Los Angeles, between the US Treasury Secretary  Stephen Mnuchin and ANCA Chairman Raffi Hamparyan, a constructive  exchange of views on the conclusion of a new Agreement on avoidance  of double taxation, on the mutual benefit of Armenia and the United  States .  Noting that the purpose of such agreements to exclude  double taxation on trade and investment, the head of the US Treasury,  said: "We must be sure of the fairness of taxation of other countries  with respect to our companies doing business in these countries, and  vice versa." Member of the ANCA National Council Aida Dimejan  expressed satisfaction with the fact that the Committee's  representatives had an opportunity to share with the head of the US  Ministry of Finance the advantages of concluding a new treaty between  the US and RA on avoiding double taxation. According to her, it is  obvious that Secretary Mnuchin understands the benefits of a fair tax  treatment with American companies doing business in Armenia and vice  versa.  ANCA hopes for concrete progress already following the  results of the "long-awaited meeting", which will be held on March 19  in Washington, DC, as part of the meeting of the Council on the  framework agreement on trade and investment between Armenia and the  United States.  A month earlier, as reported by the ANCA, US Treasury  Secretary Stephen Mnuchin, "reacting to the growing interest of  congressmen regarding the revision of the existing document," said  that the Treasury Department will allocate the appropriate human  resources for studying the Treaty on Avoiding Double Taxation with  Armenia.

 Earlier, congressmen Brad Sherman and David Valadou initiated the  collection of signatures in the US Congress under the appeal to the  head of the Treasury to resume negotiations on the revision of the  existing double taxation regime between the United States and  Armenia, concluded even during the Cold War.  "About 30 congressmen  joined the initiative of Valadao and Sherman .

On February 11, RA Minister of Finance Vardan Aramyan told reporters  that the Armenian government plans to address the issue of excluding  double taxation between Armenia and the US in March 2018 - during the  regular meeting of the intergovernmental commission. Vardan Aramyan  reminded that the issue is permanently on the agenda of bilateral  relations. Recently, the processes in this direction have  intensified, most recently during the meeting between the head of the  Armenian Ministry of Finance 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,  Contour Global Hydro Cascade and CG Solutions Global Holding Company  (USA), which owns CJSC Vorotan Cascade of HPPs, entered the Armenian  market through a Luxembourg company. "This is quite logical: Armenia  and Luxembourg have an agreement on exclusion of double  taxation.This, in turn, inspires confidence about what the principles  of international taxation should be.If I am in the place of the head  of this company, I myself would make such a decision, "said Vardan  Aramyan. , the presence of a new contract of the edge it does not  matter if there is a desire to expand bilateral economic relations -  trade or investment.

It should be noted that 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 the two states, to avoid tax  discrimination with respect to economic entities of the parties, to  exclude double taxation on property and income, and to create a  predictable and stable tax environment for business.

POST A COMMENT
Input digits     


News
Will the EAEU expand? the Deputy Prime Minister of Armenia commentsWill the EAEU expand? the Deputy Prime Minister of Armenia comments
Grigoryan on Baku`s statements Grigoryan on Baku`s statements "about returning to the Zangezur  corridor" - "Even as a transport route, the issue will not be  discussed"
1000 large taxpayers of Armenia increased the volume of tax payments  by 6% per annum in the first quarter of 20211000 large taxpayers of Armenia increased the volume of tax payments  by 6% per annum in the first quarter of 2021
State agencies are on the list of large taxpayers in ArmeniaState agencies are on the list of large taxpayers in Armenia
Mher Grigoryan discussed with the EU delegation the work on  unblocking regional transportMher Grigoryan discussed with the EU delegation the work on  unblocking regional transport
Papikyan defies detractors-modernization of Metsamor NPP will be  continuedPapikyan defies detractors-modernization of Metsamor NPP will be  continued
Mher Grigoryan: The ban on the import of Turkish goods to Armenia is  likely to be extendedMher Grigoryan: The ban on the import of Turkish goods to Armenia is  likely to be extended
Mher Grigoryan: The Government of Armenia has provided financial  assistance to more than 150 thousand beneficiaries within the  framework of assistance programs for ArtsakhMher Grigoryan: The Government of Armenia has provided financial  assistance to more than 150 thousand beneficiaries within the  framework of assistance programs for Artsakh
Deputy Prime Minister Mher Grigoryan spoke with WB Regional Vice  PresidentDeputy Prime Minister Mher Grigoryan spoke with WB Regional Vice  President
Prime Minister reported on the problems in the Zangezur  Copper-Molybdenum CombinePrime Minister reported on the problems in the Zangezur  Copper-Molybdenum Combine
Ameriabank Launches Placement of New Bond Issues for USD 20 Million and AMD 5 Billion Ameriabank Launches Placement of New Bond Issues for USD 20 Million and AMD 5 Billion 
In Armenia, the number of terminated CMPTL contracts jumped 2.5 times  YoY in the first quarter of 2021 In Armenia, the number of terminated CMPTL contracts jumped 2.5 times  YoY in the first quarter of 2021 
MP from the MP from the "My Step" faction: Forecasts of the impending  depreciation of the dram have no economic basis 
Expert: Talk about the construction of a new nuclear power plant in  Armenia does not go beyond political rhetoricExpert: Talk about the construction of a new nuclear power plant in  Armenia does not go beyond political rhetoric
Ardshinbank together with Visa launched an electronic wallet within the Мobile banking appArdshinbank together with Visa launched an electronic wallet within the Мobile banking app
Melkumyan: Melkumyan: "Velvet" government failed in the modernization program of  Metsamor NPP 
Armenia`s trade sector was in decline in January-February 2021Armenia`s trade sector was in decline in January-February 2021
Revenue of the Armenian communications sector in January-February  2021 sank by 4.7% per annumRevenue of the Armenian communications sector in January-February  2021 sank by 4.7% per annum
Passenger transportation in Armenia delayed in decline due to the  coronacrisisPassenger transportation in Armenia delayed in decline due to the  coronacrisis
Get now, pay later, now the same priceGet now, pay later, now the same price
Armenia`s steel industry was in decline by March 2021Armenia`s steel industry was in decline by March 2021
Armenia reduced electricity generation by 5.8% per annum in  January-February 2021Armenia reduced electricity generation by 5.8% per annum in  January-February 2021
Expert: The Central Bank`s initiative is a signal to Expert: The Central Bank`s initiative is a signal to "money bags" or  life under the microscope
RA Issued Eurobonds Are Now Traded on Armenia Securities ExchangeRA Issued Eurobonds Are Now Traded on Armenia Securities Exchange
Armenia`s manufacturing industry continues to sinkArmenia`s manufacturing industry continues to sink
Two-year monitoring of the online labor exchange indicates the  restoration of business optimism-Vahan KerobyanTwo-year monitoring of the online labor exchange indicates the  restoration of business optimism-Vahan Kerobyan
SRC of Armenia encourages decent taxpayersSRC of Armenia encourages decent taxpayers
Converse Bank. New campaign for womenConverse Bank. New campaign for women
Pashinyan to EBRD President: The re-commissioning of transport  communications could help implement new joint projectsPashinyan to EBRD President: The re-commissioning of transport  communications could help implement new joint projects
“Evocabank” CJSC’s bonds have been listed on Armenia Securities Exchange for the first time“Evocabank” CJSC’s bonds have been listed on Armenia Securities Exchange for the first time
 Optimism of the authorities contrary to official statistics: What  will the Armenian economy face? Optimism of the authorities contrary to official statistics: What  will the Armenian economy face?
The Central Bank of Armenia announces its intention to intervene in  the foreign exchange market for the second time in 2021The Central Bank of Armenia announces its intention to intervene in  the foreign exchange market for the second time in 2021
On April 12, Ameriabank will start placing the next tranches of USD  and AMD bonds in the amount of $ 20 million and 5 billion dramsOn April 12, Ameriabank will start placing the next tranches of USD  and AMD bonds in the amount of $ 20 million and 5 billion drams
Ardshinbank and Visa offer smart Visa payment rings for the first time in ArmeniaArdshinbank and Visa offer smart Visa payment rings for the first time in Armenia
Armenia`s unemployment rate drops to 16% in 2020Armenia`s unemployment rate drops to 16% in 2020
Armenia`s SRC: The number of registered micro-entrepreneurship  entities increased by 18% Armenia`s SRC: The number of registered micro-entrepreneurship  entities increased by 18% 
The inflow of foreign investment into the Armenian economy has  declined by 39 in 2020%The inflow of foreign investment into the Armenian economy has  declined by 39 in 2020%
Ex-Minister: Creating a centralized register of bank accounts is an  attempt to adapt the Rolls-Royce engine to your own dreamEx-Minister: Creating a centralized register of bank accounts is an  attempt to adapt the Rolls-Royce engine to your own dream
Armenia`s foreign trade turnover decreased in January-February 2021  by 12.2% per annumArmenia`s foreign trade turnover decreased in January-February 2021  by 12.2% per annum
The financial regulator sees the feasibility of introducing a  centralized register of bank accountsThe financial regulator sees the feasibility of introducing a  centralized register of bank accounts
Armenia`s foreign trade turnover with the EU countries has been  delayed in declineArmenia`s foreign trade turnover with the EU countries has been  delayed in decline
Armenia`s national debt is approaching $9 billionArmenia`s national debt is approaching $9 billion
Armenia`s consumer market recorded inflation of 3.8% in Q1 2021 with  5.2% y-o-y inflation Armenia`s consumer market recorded inflation of 3.8% in Q1 2021 with  5.2% y-o-y inflation 
Up to 150 million cubic meters of Russian gas to be supplied to  Armenia through AzerbaijanUp to 150 million cubic meters of Russian gas to be supplied to  Armenia through Azerbaijan
IDBank offers the most flexible and profitable conditions for mortgage borrowersIDBank offers the most flexible and profitable conditions for mortgage borrowers
Armenia reduced exports of copper ore, increasing exports of zinc and  molybdenum concentrates and ores containing precious metalsArmenia reduced exports of copper ore, increasing exports of zinc and  molybdenum concentrates and ores containing precious metals
Russia and Brazil became the main sugar import markets for Armenia in  2020Russia and Brazil became the main sugar import markets for Armenia in  2020
EU Ambassador and Armenian NPP leadership discussed opportunities for  expanding cooperationEU Ambassador and Armenian NPP leadership discussed opportunities for  expanding cooperation
Deputy Minister: Unblocking of economic ties and transport  communications in the South Caucasus is beneficial to all partiesDeputy Minister: Unblocking of economic ties and transport  communications in the South Caucasus is beneficial to all parties
Moscow plans to discuss the prospects of creating logistics centers  for groupage cargo from ArmeniaMoscow plans to discuss the prospects of creating logistics centers  for groupage cargo from Armenia
Ardshinbank upgrades its branches in Hrazdan and DilijanArdshinbank upgrades its branches in Hrazdan and Dilijan
Armenia`s gross international reserves exceeded $3 billion for the  first time with a 33% jump in FebruaryArmenia`s gross international reserves exceeded $3 billion for the  first time with a 33% jump in February
Armenia and Malta move to eliminate double taxationArmenia and Malta move to eliminate double taxation
Armenian tax officials report over-fulfillment of quarterly tax  collection plan: Finance Ministry promises to take new heightsArmenian tax officials report over-fulfillment of quarterly tax  collection plan: Finance Ministry promises to take new heights
New WB forecast: Armenia ranks second in terms of GDP growth in 2021  among the EAEU countries, and at the rate of 2022 it shares the lead  with KyrgyzstanNew WB forecast: Armenia ranks second in terms of GDP growth in 2021  among the EAEU countries, and at the rate of 2022 it shares the lead  with Kyrgyzstan
New forecast of the Central Bank of Armenia for 2021: GDP growth by  1.4%, export growth by 1-3%, import decline 2-4%, unemployment rate  18.6%New forecast of the Central Bank of Armenia for 2021: GDP growth by  1.4%, export growth by 1-3%, import decline 2-4%, unemployment rate  18.6%
Telecom Armenia summed up the results of the <Coding skills> project Telecom Armenia summed up the results of the project 
The Armenian Stock Exchange is once again recognized as the The Armenian Stock Exchange is once again recognized as the "Best  Stock Exchange in the South Caucasus"
World Bank improves Armenia`s GDP growth forecast for 2021 to 3.4%World Bank improves Armenia`s GDP growth forecast for 2021 to 3.4%
The Central Bank of Armenia predicts an increase in the net inflow of  private transfers in the range of 7-9 in 2021%The Central Bank of Armenia predicts an increase in the net inflow of  private transfers in the range of 7-9 in 2021%
Read more


Exchange rates
16.04.2021
RUB6.890.10
USD522.201.00
EUR625.491.20
GBP719.540.96
CAD417.530.34
JPY47.980.06
CNY79.980.16
CHF568.043.05