    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
    [June 4, 2008]
    [Pages 750-751]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Message to the Senate Transmitting the Bulgaria-United States Taxation
    Convention
    June 4, 2008

    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 the Republic of Bulgaria for the Avoidance of
    Double Taxation and the Prevention of Fiscal Evasion With Respect to
    Taxes on Income, with accompanying Protocol, signed at Washington on
    February 23, 2007 (the ``Proposed Treaty''), as well as the Protocol
    Amending the Convention Between the Government of the United States of
    America and the Government of the Republic of Bulgaria for the Avoidance
    of Double Taxation and the Prevention of Fiscal Evasion With Respect to
    Taxes on Income, signed at Sofia on February 26, 2008 (the ``Proposed
    Protocol of Amendment''). The Proposed Treaty and Proposed Protocol of
    Amendment are consistent with U.S. tax treaty policy. Also transmitted
    for the information of the Senate is the report of the Department of
    State with respect to the Proposed Treaty and Proposed Protocol of
    Amendment.
        The Proposed Treaty generally reduces the withholding tax on cross-
    border dividend, interest, and royalty payments. Importantly, the
    Proposed Treaty generally eliminates withholding tax on cross-border
    dividend payments to pension funds and cross-border interest payments
    made to financial institutions. The Proposed Treaty also contains
    provisions, consistent with current U.S. tax treaty policy, that are
    designed to prevent so-called treaty shopping. The Proposed Protocol of
    Amendment further strengthens these treaty shopping provisions.
        I recommend that the Senate give early and favorable consideration
    to the Proposed Treaty and give its advice and consent to ratification
    to both the Proposed Treaty and the Proposed Protocol of Amendment.

                                                              George W. Bush

     The White House,

     June 4, 2008.

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