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US companies urge Senate to progress DTTs

Tuesday, 14 May, 2019

More than 85 US companies have signed a letter asking the United States Senate to approve various double tax treaties (DTTs) that have been pending since January 2019.

The letter, published on behalf of the companies by the US National Foreign Trade Council (NFTC) at the end of April, is addressed to Senate Majority Leader Mitch McConnell and Senate Foreign Relations Committee Chairman James Risch, emphasises the role of the DTTs in supporting investment in US business through “fostering bilateral trade” and protecting US businesses from double taxation of income earned from business in foreign markets.

According to the US Department of State’s Bilateral Treaties in Force 2018, the US currently has agreements relating to the avoidance of double taxation in force with 54 countries.

However, there are currently seven tax agreements pending in the Senate (as of January 2, 2019): three conventions, with Chile, Hungary and Poland; and four tax treaty-amending protocols with Japan, Luxembourg, Spain and Switzerland.

The signatories of the letter conclude: “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.”

Sources