[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
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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.