[Weekly Compilation of Presidential Documents Volume 44, Number 22 (Monday, June 9, 2008)]
[Page 783]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.