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US Companies Urge Senate To Approve Tax Treaties

Friday, May 10, 2019

In a letter published on April 29, 2019, the United States National Foreign Trade Council urged the Senate to approve several pending double tax avoidance treaties.

The letter, signed by more than 85 US companies, highlights the important role of income tax treaties in fostering bilateral trade relations and protecting US taxpayers from double taxation.

The letter, addressed to Senate Majority Leader Mitch McConnell (R-KY) and Senate Foreign Relations Committee Chairman James Risch (R-ID), states: "The bilateral income tax treaties and protocols pending before the Senate Foreign Relations Committee are important to US economic growth and US trade and tax policy. For over eighty years, income tax treaties have played a critical role in fostering US bilateral trade and investment and protecting US businesses, large and small, from double taxation of the income they earn from selling goods and services in foreign markets."

"We ask for your support for these treaties and protocols and also ask for expeditious action on them by both the Senate Foreign Relations Committee and the Senate."

According to the US State Department, as of January 2, 2019, the following tax agreements signed by the US were pending in the Senate:

  • A Convention with Hungary, signed on February 4, 2010, and submitted to the Senate on November 15, 2010;
  • A Protocol amending the tax treaty with Luxembourg, signed on May 20, 2009, and submitted to the Senate on November 15, 2010;
  • A Protocol amending the tax treaty with Switzerland, signed on September 23, 2009, and submitted to the Senate on January 26, 2011;
  • A Convention with Chile, signed on February 4, 2010, and submitted to the Senate on May 17, 2012;
  • A Protocol amending the tax treaty with Spain, signed on January 14, 2013, and submitted to the Senate on May 7, 2014;
  • A Convention with Poland, signed on February 13, 2013, and submitted to the Senate on May 20, 2014; and
  • A Protocol amending the tax treaty with Japan, signed on January 24, 2013, and submitted to the Senate on April 13, 2015.