[Weekly Compilation of Presidential Documents Volume 40, Number 29 (Monday, July 19, 2004)]
[Page 1313]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting a Protocol Amending the Netherlands-
United States Convention on Taxation

July 16, 2004

To the Senate of the United States:

    I transmit herewith for Senate advice and consent to ratification, 
the Protocol Amending the Convention Between the United States of 
America and 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, D.C., on March 8, 2004. Transmitted for 
the Senate's information is an exchange of notes with an attached 
Understanding, which provides clarification with respect to the 
application of the Convention, as amended, in specific cases. Also 
transmitted for the information of the Senate is the report of the 
Department of State with respect to the Protocol.
    The Protocol would bring the existing Convention into closer 
conformity with current U.S. tax treaty policy. As modified by the 
Protocol, the Convention would be similar to tax treaties between the 
United States and other developed nations. The Protocol was concluded in 
recognition of the importance of the United States' economic relations 
with the Netherlands.
    The Protocol would modify the treatment of certain cross-border 
dividend payments and would modernize the Convention's anti-treaty-
shopping provisions. The Protocol also would liberalize provisions in 
the existing Convention regarding the mutual recognition of each 
country's pension plans. Other provisions in the Protocol update the 
Convention to take account of changes in law in the two countries over 
the last 10 years. The exchange of notes with an attached Understanding 
provides guidance to taxpayers and each government regarding the 
intended interpretation of certain provisions of the existing 
Convention, as amended.
    I recommend that the Senate give early and favorable consideration 
to this Protocol, and that the Senate give its advice and consent to 
ratification.
                                                George W. Bush
 The White House,
 July 16, 2004.

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