[Senate Treaty Document 106-15]
[From the U.S. Government Publishing Office]



106th Congress 
 1st Session                     SENATE                     Treaty Doc.
                                                                 106-15
_______________________________________________________________________

                                     



 
                      TAX CONVENTION WITH IRELAND

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND 
THE GOVERNMENT OF IRELAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE 
   PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND 
            CAPITAL GAINS SIGNED AT DUBLIN ON JULY 28, 1997





  October 29, 1999.--Convention was read the first time, and together 
  with the accompanying papers, referred to the Committee on Foreign 
     Relations and ordered to be printed for the use of the Senate.

                                 ______

                    U.S. GOVERNMENT PRINTING OFFICE
79-112                      WASHINGTON : 1999



                         LETTER OF TRANSMITTAL

                              ----------                              

                                 The White House, October 29, 1999.
To the Senate of the United States:
    I transmit herewith for Senate advice and consent to 
ratification the Convention Amending the Convention Between the 
Government of the United States of America and the Government 
of Ireland for the Avoidance of Double Taxation and the 
Prevention of Fiscal Evasion with Respect to Taxes on Income 
and Capital Gains signed at Dublin on July 28, 1997. The 
Convention, which was negotiated pursuant to the Senate's 
resolution of October 31, 1997, granting advice and consent to 
the 1997 Convention, modifies the tax treatment of dividends 
received from Real Estate Investment Trusts.
    I recommend that the Senate give early and favorable 
consideration to this Convention and give its advice and 
consent to ratification.

    William J. Clinton.PERSONAL COMPUTER\J\079112-A015TD-001-*****-
 *****-Payroll No.: 95959 -Name: WEST -Folios: 3-7/10 -Date: 10-29-
                                                     99 -Subformat:
                          LETTER OF SUBMITTAL

                              ----------                              

                                       Department of State,
                                       Washington, October 8, 1999.
The President,
The White House.
    The President: I have the honor to submit to you, with a 
view to its transmission to the Senate for advice and consent 
to ratification, the Convention Amending the Convention Between 
the Government of the United States of America and the 
Government of Ireland for the Avoidance of Double Taxation and 
the Prevention of Fiscal Evasion with Respect to Taxes on 
Income and Capital Gains Signed at Dublin on July 28, 1997 
(``the proposed Convention'').
    The Senate's Resolution of October 31, 1997, providing 
advice and consent to the 1997 Convention contained a 
declaration calling for the United States to exercise its best 
efforts to amend the 1997 Convention in order to modify the tax 
treatment of dividends from Real Estate Investment Trusts. The 
proposed Convention would amend the 1997 Convention in response 
to the Senate's declaration by expanding the category of 
dividends from Real Estate Investment Trusts that are entitled 
to the same preferential tax treatment currently provided to 
portfolio dividends earned on other corporate securities.
    Article 1 of the proposed Convention replaces Paragraph 4 
of Article 10 (Dividends) of the 1997 Convention. It maintains 
the current rules for the treatment of dividends paid by a 
Regulated Investment Company, which will continue to be subject 
to U.S. withholding tax at a rate of 15 percent. Dividends paid 
by a Real Estate Investment Trust will continue to be subject 
to the full U.S. domestic withholding rate of 30 percent in 
most cases, to reflect the fact that an investment in a Real 
Estate Investment Trust is a substitute for a direct investment 
in real property, income from which would be subject to the 
higher rate. However, a lower rate of 15 percent is provided 
for dividends paid by a Real Estate Investment Trust where 
specified conditions are met indicating that the investment is 
more similar to a portfolio investment in other types of 
corporations than to an investment in real property. The 
proposed Convention adds two additional categories of dividends 
that will qualify for the reduced rate of withholding tax.
    Article 2 of the proposed Convention provides that the 
proposed Convention is subject to ratification, that the 
instruments of ratification shall be exchanged as soon as 
possible, and that the proposed Convention shall enter into 
force upon the exchange of instruments of ratification and 
shall have effect in respect of dividends paid on or after the 
first day of the second month next following the date on which 
the proposed Convention enters into force.
    The Department of the Treasury and the Department of State 
cooperated in the negotiation of the proposed Convention. It 
has the full approval of both Departments.
    Respectfully submitted,
                                                Madeleine Albright.


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