WASHINGTON, DC – Congressional Armenian Caucus Co-Chairmen Joe Knollenberg (R-MI) and Frank Pallone (D-NJ) have urged 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, reported the Armenian National Committee of America (ANCA). The appeal comes on the eve of an inter-agency U.S. Armenia Task Force meeting, which is set to discuss this issue as part of an overall framework to promote bilateral trade and economic cooperation between the two countries.

“We want to thank Congressmen Knollenberg and Pallone for their leadership in urging the adoption of a bilateral tax treaty with Armenia,” said ANCA Executive Director Aram Hamparian. “As we have explained to senior Administration officials, the adoption of this and other economic agreements – such as a Social Security agreement – will advance U.S. interests in the region by strengthening the U.S-Armenia economic relationship and expanding trade and investment opportunities for businesses in both countries.”

The treaty on bilateral taxation, or “double taxation,” would clarify the taxation of transactions, investments, rents, royalties, management contracts, dividends, interest and salaries of companies and employees working in Armenia and the United States. A separate agreement on Social Security would clarify Social Security obligations and entitlements for companies and individuals working or residing in both countries. It would eliminate dual Social Security coverage and taxes for multinational companies and expatriate workers, while improving benefit protection for workers who have divided their careers between the United States and Armenia.

A broad range of bilateral economic issues will be addressed during the U.S. Armenia Task Force meeting, to be held in Yerevan, Armenia, on January 23rd and 24th. In recent weeks, the ANCA has discussed these issues with American diplomats stationed in Armenia and with Amb. Bill Taylor, coordinator of U.S. assistance to Europe and Eurasia. Taylor is leading the U.S. delegation, which will include officials from the Departments of Commerce and Treasury, Justice, and Agriculture, as well as from the office of the U.S. Trade Representative and the U.S. Agency for International Development. Leading the Armenia delegation will be Finance and Economy Minister Vardan Khachatryan.

“We appreciate the efforts of Ambassador Bill Taylor and are confident that the inter-agency team he has brought together will work constructively with its Armenian counterpart during the meeting of the U.S.-Armenia Task Force, and in the months ahead, to make progress on bilateral issues, ranging from trade, energy and tourism to maximizing the effectiveness of U.S. aid programs and promoting economic reform,” added Hamparian.

A link to the full text of Reps. Pallone and Knollenberg’s press release on the bilateral taxation agreement is in the “Additional Documents” Section below.