[Weekly Compilation of Presidential Documents Volume 29, Number 19 (Monday, May 17, 1993)]
[Page 845]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting the Convention on Taxation With The 
Netherlands

 May 12, 1993

To the Senate of the United States:

    I transmit herewith for the advice and consent of the Senate to 
ratification the Convention Between the Government of the United States 
of America and the Government of the Kingdom of the Netherlands for the 
Avoidance of Double Taxation and the Prevention of Fiscal Evasion with 
Respect to Taxes on Income, signed at Washington on December 18, 1992. 
An Understanding and exchange of notes are enclosed for the information 
of the Senate. Also transmitted for the information of the Senate is the 
report of the Department of State with respect to the Convention.
    The Convention replaces the existing income tax convention between 
the United States and the Kingdom of the Netherlands signed at 
Washington in 1948 and last amended in 1965. It is intended to reduce 
the distortions (double taxation or excessive taxation) that can arise 
when two countries tax the same income, thereby enabling U.S. firms to 
compete on a more equitable basis in the Netherlands and further 
enhancing the attractiveness of the United States to Dutch investors. In 
general, the Convention follows the pattern of other recent U.S. income 
tax treaties and is based on the U.S. and OECD Model treaties and recent 
income tax conventions of both parties. It will serve to modernize tax 
relations between the two countries.
    I recommend that the Senate give early and favorable consideration 
to the Convention and give its advice and consent to ratification.
                                            William J. Clinton
The White House,
May 12, 1993.