If you can wade through the government-ese language, this announcement from the U.S. Treasury Department means good news for meetings in Aruba. As of September 14, the U.S.-Aruba Tax Information Exchange Agreement went into effect, which means, for tax purposes, an Aruba meeting has the same deductions as other North American meetings.
- As of September 13, 2004, Aruba is considered part of the "North American area" for purposes of determining whether U.S. taxpayers may deduct expenses incurred in attending conventions, business meetings and seminars in Aruba. Convention expenses that are incurred by U.S. 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. A list of geographical areas that currently are included in the North American area for purposes of these convention expense deduction rules is provided in Revenue Ruling 2003-109. This revenue procedure will be updated to take account the agreement with Aruba.
Among those eager to let us all know about this are the Aruba Marriott Resort & Stellaris Casino and the Renaissance Aruba Resort & Casino, whose PR agencies were quick to point out this new development. Hey, who needs an excuse to go to Aruba, says she who just last night suffered through the first frost of the coming New England winter.
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