Approval Process Of International Tax Treaties By United States
Foreign countries across the world have intricate tax treaties with the United States, which include topics such as exchanging tax information with tax authorities. In order for these tax treaties to come to fruition, they must first pass through the Executive and Legislative Branches of the U.S. Government for approval.
The Secretary of the Treasury, part of the Executive Branch and appointed by the President, has the responsibility for negotiating federal income tax treaties with foreign countries. When negotiations are completed with a foreign country, the Treasury Secretary submits the negotiated treaty to the Senate Foreign Relations Committee for the advice and consent of the Senate.
The Senate Foreign Relations Committee holds public hearings on the proposed treaty, conducts mark-up sessions to possibly revise or amend the treaty, prepares a detailed Committee Report on any action the Committee may have taken for changes to the treaty, and finally schedules Senate floor debate on the Committee-reported bill. Under our constitution, the Senate has the power, by a two-thirds vote of the Senate to approve the treaty. The Senate-passed bill is then returned to the Secretary of the Treasury for final review, and then submitted to the President for approval and signature.
When publicly available, virtually all documents related to the treaties are posted on the web, including recently signed tax treaties, TIEAs (Technical Information Exchange Agreements), including the U.S. Model Income Tax Convention, and letters to Congress and testimony.
There has not been an approval to a tax treaty by the full Senate since 2010. Some of the reasons for this include objections to FATCA and the automatic exchanging of tax information between the U.S. and foreign tax authorities.
Below is the list of the tax treaties that the U.S. has with other countries (listed in alphabetical order).Armenia (former USSR state covered by treaty) - 1973 Australia - 1982 Austria - 1996 Azerbaijan (former USSR state covered by treaty) - 1973 Bangladesh - 2006 Barbados - 1984 Belarus (former USSR state covered by treaty) - 1973 Belgium - 1970 Bulgaria - 2007 Canada - 1980 China - 1984 Cyprus - 1984
Czech Republic - 1993Denmark - 2000 Egypt - 1980 Estonia - 1998 Finland - 1989 France - 1994 Georgia (former USSR state covered by treaty) - 1973 Germany - 1989 Greece - 1950 Hungary - 1979 Iceland - 1975 India - 1989 Indonesia - 1988 Ireland - 1997 Israel - 1975 Italy - 1999 Jamaica - 1980 Japan - 2003 Kazakhstan - 1993 Korea - 1976 Kyrgyzstan (former USSR state covered by treaty) - 1973 Latvia - 1998 Lithuania - 1998 Luxembourg - 1996 Malta - 2008 Mexico - 1992 Moldova (former USSR state covered by treaty) - 1973 Morocco - 1977
Netherlands - 1992New Zealand - 1982 Norway - 1971 Pakistan - 1957 Philippines - 1976 Poland - 1974 Portugal - 1994 Romania - 1973 Russia - 1992 Slovak Republic - 1993 Slovenia - 1999 South Africa - 1997 Spain - 1990 Sri Lanka - 2002 Sweden - 1994 Switzerland - 1996 Tajikistan (former USSR state covered by treaty) - 1973 Thailand - 1996
Trinidad - 1970Tunisia - 1985
Turkey - 1996Turkmenistan (former USSR state covered by treaty) - 1973 Ukraine - 1994 Union of Soviet Socialist Republics (USSR) - 1973 United Kingdom - 1975 United States Model - 2006 Uzbekistan (former USSR state covered by treaty) - 1973 Venezuela - 1999