[Weekly Compilation of Presidential Documents Volume 42, Number 40 (Monday, October 9, 2006)]
[Page 1710]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Message to the Senate Transmitting the Protocol Amending the Germany-
United States Taxation Convention

September 29, 2006

To the Senate of the United States:

    I transmit herewith, for Senate advice and consent to ratification, 
a Protocol Amending the Convention Between the United States of America 
and the Federal Republic of Germany for the Avoidance of Double Taxation 
and the Prevention of Fiscal Evasion with Respect to Taxes on Income and 
Capital and to Certain Other Taxes, Signed on August 29, 1989, signed at 
Berlin June 1, 2006 (the ``Protocol''), along with a related Joint 
Declaration. Also transmitted for the information of the Senate is the 
report of the Department of State with respect to the Protocol.
    The Protocol eliminates the withholding tax on certain cross-border 
dividend payments. Like a number of recent U.S. tax agreements, the 
proposed Protocol provides for the elimination of the withholding tax on 
dividends arising from certain direct investments and cross-border 
dividend payments to pension funds. The Protocol also provides for 
mandatory arbitration of certain cases before the competent authorities. 
This provision is the first of its kind in a U.S. tax treaty. In 
addition, the Protocol also modernizes the Convention to bring it into 
closer conformity with current U.S. tax-treaty policy, including 
strengthening the treaty's provisions preventing so-called treaty 
shopping.
    I recommend that the Senate give early and favorable consideration 
to the Protocol, along with the Joint Declaration and give its advice 
and consent to ratification.
                                                George W. Bush
The White House,
September 29, 2006.

Note: This message was released by the Office of the Press Secretary on 
October 2. An original was not available for verification of the content 
of this message.