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“The cooperation of Armenian tax and policy-making bodies in the international framework has been significantly activated in recent years. We are members of reputable structures which have a good reputation in the field of taxation and carry out activities aimed at capacity development,” the RA Deputy Minister of Finance Arman Poghosyan noted at the sitting of the Standing Committee on Economic Affairs held on September 7. The Deputy Minister presented the draft law on Ratifying the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting to the Committee members for debate. Armenia joined the Convention in 2017.

According to the key rapporteur, the Republic of Armenia has agreements excluding double taxation with about 50 countries. Tax relations are developing, and there is a need to review those documents: Armenia is currently in that process.

According to Arman Poghosyan, the Convention is a more sophisticated document than the bilateral agreements signed between individual states aimed at avoiding double taxation and preventing tax evasion. The provisions of the agreement regulate the possible conflicts or obsolete provisions that exist in bilateral agreements avoiding double taxation. According to the key rapporteur, the document, which was formed on the platform of the Member countries of the Organisation for Economic Co-operation and Development, is quite effective in terms of enforceability. The agreement expands the capacity of the tax body to conduct administration in other countries, including in terms of receiving information, ensuring transparency and using tools of mutual administrative assistance. “Integration with international platforms will be an important contribution to the increase in the efficiency of tax administration, especially in dealings with supernational corporations,” Arman Poghosyan said.

The draft was endorsed.

The Committee also debated the issue on Ratifying the Protocol on Amending the Convention of 12 June 2006 between the Republic of Armenia and the Swiss Confederation for the Avoidance of Double Taxation with Respect to Taxes on Income and Capital.

The RA Deputy Minister of Finance Arman Poghosyan presented clarifications related to the agreement.

The Committee endorsed the issue.