    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book II)]
    [December 9, 2003]
    [Page 1704]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 1704]]

    Message to the Senate Transmitting the Japan-United States Tax
    Convention
    December 9, 2003

    To the Senate of the United States:
        I transmit herewith, for Senate advice and consent to ratification,
    the Convention between the Government of the United States of America
    and the Government of Japan for the Avoidance of Double Taxation and the
    Prevention of Fiscal Evasion with respect to Taxes on Income, signed at
    Washington on November 6, 2003, together with a Protocol and an exchange
    of notes (the ``Convention''). I also transmit, for the information of
    the Senate, the report of the Department of State concerning the
    Convention.
        This Convention would replace the Convention between the United
    States of America and Japan for the Avoidance of Double Taxation and the
    Prevention of Fiscal Evasion with respect to Taxes on Income, signed at
    Tokyo on March 8, 1971.
        This Convention, which is similar to tax treaties between the United
    States and other developed nations, provides rules specifying the
    circumstances under which income that arises in one of the countries and
    is derived by residents of the other country may be taxed by the country
    in which income arises, providing for maximum source-country withholding
    tax rates that may be applied to various types of income and providing
    for protection from double taxation of income. The proposed Convention
    also provides rules designed to ensure that the benefits of the
    Convention are not available to persons that are engaged in treaty
    shopping. Also included in the proposed Convention are rules necessary
    for administering the Convention.
        I recommend that the Senate give early and favorable consideration
    to this Convention, and that the Senate give its advice and consent to
    the ratification of the Convention.

                                                              George W. Bush

     The White House,

     December 9, 2003.