[Weekly Compilation of Presidential Documents Volume 39, Number 50 (Monday, December 15, 2003)]
[Pages 1780-1781]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting the Japan-United States Convention on 
Avoidance of Double Taxation and Prevention of Fiscal Evasion With 
Respect to Taxes on Income

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.

[[Page 1781]]

    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.