ANCA Renews Call for U.S.-Armenia Tax Treaty

Armenian National Committee of America
888 17th Street NW Suite 904
Washington, DC 20006
Tel: (202) 775-1918
Fax: (202) 775-5648
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PRESS RELEASE

FOR IMMEDIATE RELEASE
May 21, 2004
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

ANCA RENEWS CALL FOR U.S.-ARMENIA TAX TREATY

— Treaty Needed to Address Growing Bilateral Commerce
and Increased Diasporan Economic Involvement in Armenia

WASHINGTON, DC – In a letter to Treasury Secretary John W. Snow and
in correspondence sent today to members of Congress, the Armenian
National Committee Of America (ANCA) renewed its call for the U.S.
government to facilitate the growing levels of U.S.-Armenia trade
and investment by negotiating a comprehensive tax treaty with
Armenia.

“With the expansion of U.S.-Armenia economic ties, it is more
important than ever that our government negotiate a comprehensive
and far-reaching tax treaty that will strengthen the U.S.-Armenia
economic relationship for many decades to come,” said ANCA
Executive Director Aram Hamparian. “The Department of the Treasury
should be working closely with the Armenian government and with
American businesses operating in Armenia – including the growing
number run by Diasporan Armenians – to specifically tailor an
agreement that addresses the needs of Americans who divide their
careers between the U.S. and Armenia – or who plan to retire to
Armenia – in terms of portability of pensions and healthcare and a
variety of other concerns.”

The U.S. has negotiated tax treaties with over forty nations in
order to clarify the taxation of transactions, investments, rents,
royalties, management contracts, dividends, interest and salaries
of companies and employees working in both countries. The U.S. has
recently exchanged instruments of ratification with three new
countries – Ukraine, Luxembourg, and Denmark.

As part of its broader efforts to strengthen U.S.-Armenia bilateral
economic relations, the ANCA has been working for more than four
years to encourage the U.S. to negotiate a tax treaty with Armenia.
Other elements of this effort included helping to secure Armenia’s
membership in the World Trade Organization – which took place in
February of last year – and the granting to Armenia of Permanent
Normal Trade Relations Status (PNTR). Several thousand Armenian
Americans have written to the Social Security Administration using
the ANCA WebFax program to call for a Social Security Agreement
that would help U.S. citizens who work part of the year or plan to
retire in Armenia. At the state level, the ANCA-Western Region
spearheaded the creation of the California-Armenia Trade Office,
which is set to open in Yerevan later this year.

In January of 2002, Congressional Armenian Caucus Co-Chairmen Joe
Knollenberg (R-MI) and Frank Pallone (D-NJ) urged the then Treasury
Secretary, Paul O’Neill, to help expedite a bilateral tax treaty
between the U.S. and Armenia that would effectively eliminate the
“double taxation” of income of citizens working in both countries.
The appeal came on the eve of an inter-agency U.S. Armenia Task
Force meeting, which discussed taxation issues as part of an
overall framework to promote bilateral trade and economic
cooperation between the two countries.

For an overall review of U.S. Tax Treaties

For the full text of most U.S. Tax Treaties:
ind_info/ treaties.html.

For information about Armenia on the website of the U.S. Department
of Commerce:

To learn about USAID’s private sector aid to Armenia:

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http://www.irs.gov/pub/irs-pdf/p901.pdf
http://www.bisnis.doc.gov/bisnis/country/armenia.cfm
http://www.usaid.gov/am/private.html
www.anca.org
www.irs.gov/prod/