US And Aruba TIEA Enters Into Force
by Mike Godfrey, Tax-News.com, Washington
16 September 2004

The US Treasury Department announced on Monday that the United States and Aruba have exchanged diplomatic notes bringing into force the tax information exchange agreement between the two countries signed in Washington, DC in 2003.

The US-Aruba Tax Information Exchange Agreement is consistent with the standards for an exchange of information agreement described in the Internal Revenue Code. The Code generally allows US taxpayers to claim a tax deduction for expenses associated with a convention held in certain beneficiary countries with tax information exchange agreements with the United States to the same extent as a convention held in the United States.

As of September 13, 2004, Aruba is considered part of the ‘North American area’ for purposes of determining whether US taxpayers may deduct expenses incurred in attending conventions, business meetings and seminars in Aruba.

Convention expenses that are incurred by US taxpayers for meetings in geographical areas considered part of the North American area and that otherwise are deductible as ordinary and necessary business expenses are allowed as deductions without regard to the additional limitations applicable to deductions for expenses associated with foreign conventions.

.