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NFTC VP Details Importance of Tax Treaties to U.S. Competitiveness in Testimony Before the Senate Foreign Relations Committee
Date: 6/19/2014
Written By: Nicole L’Esperance, The Fratelli Group for NFTC, (202) 822-9491

Washington DC – National Foreign Trade Council (NFTC) Vice President for Tax Policy Cathy Schultz today testified before the Senate Committee on Foreign Relations on the ratification of the pending tax treaty protocol with Spain and the tax treaty with Poland.

In her testimony, Schultz stated:

"As global competition grows ever more intense, it is vital to the health of U.S. enterprises and to their continuing ability to contribute to the U.S. economy that they be free from excessive foreign taxes or double taxation and impediments to the flow of capital that can serve as barriers to full participation in the international marketplace. Foreign trade is fundamental to the economic growth of U.S. companies. Ninety-five percent of the world's consumers are outside of the United States. Tax treaties are a crucial component of the framework that is necessary to allow that growth and balanced competition.

"This is why the NFTC has long supported the expansion and strengthening of the U.S. tax treaty network and why we recommend ratification of the items before you today.

"… The Protocol and Tax Treaty improve conventions that have stimulated increased investment, greater transparency and a stronger economic relationship between our countries. The Spanish Protocol lowers the withholding rates for dividends, interest, and royalties. We are pleased that the Spanish Protocol provides for mandatory arbitration. The Polish Tax Treaty lowers the withholding rates for dividends, interest and royalties. The Polish Tax Treaty also includes a limitation on benefits (LOB) provision that will help stop treaty shopping through Poland.

"We thank the committee for its prior support of this evolution in U.S. tax treaty policy, and we strongly urge you to continue that support by approving the Tax Treaty and Protocol before you today."

Click here to read Schultz's full testimony.


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