Senators Request Renegotiation of U.S.-Japan Income Tax Treaty
Senators Request Renegotiation of U.S.-Japan Income Tax Treaty
- AuthorsHelms, Sen. JesseBiden, Sen. Joseph R., Jr.Hagel, Sen. Chuck
- Institutional AuthorsSenateForeign Relations Committee
- Cross-ReferenceFor text of the United States-Japan income tax treaty, with notes,
- Subject Area/Tax Topics
- Index Termstax treatieslegislation, tax
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-4990 (1 original page)
- Tax Analysts Electronic Citation2000 TNT 67-33
=============== SUMMARY ===============
Senate Foreign Relations Committee members Jesse Helms, R-N.C., Joseph R. Biden Jr., D-Del., and Chuck Hagel, R-Neb., have asked the administration to renegotiate the U.S.-Japan income tax treaty in an October 25, 1999, letter to Treasury Secretary Lawrence H. Summers. (For text of the United States-Japan income tax treaty, with notes, signed March 8, 1971, see Doc 93-30933 (130 pages) or 86 TNI 8-27 .)
=============== FULL TEXT ===============
UNITED STATES SENATE
COMMITTEE ON FOREIGN RELATIONS
WASHINGTON, DC 20510-6225
October 25, 1999
The Honorable Lawrence H. Summers
Secretary of the Treasury
1500 Pennsylvania Avenue
Washington D.C. 20220
Dear Mr. Secretary:
[1] There appears to [be] an urgent need for you to undertake the renegotiation of the Income Tax Convention between the United States and Japan.
[2] The U.S.-Japan treaty, negotiated more than three decades ago and ratified in 1972, is sadly outdated and does not begin to reflect the modern treaties the United States has with other major trading partners.
[3] For many U.S. companies, the high withholding rates stipulated in the treaty constitute a trade barrier to investment in Japan. In addition, renegotiation of the treaty will update other provisions of the treaty important to the United States such as the competent authority mechanism, which has been overly slow in resolving disputes between businesses and the relevant taxing authority.
[4] Mr. Secretary, we are aware that informal talks with Japanese officials are occurring. We hope, however, that formal negotiations will be commenced as soon as possible. We are certain you will agree that a new treaty consistent with United States tax policy would benefit both countries and increase investment opportunities.
Sincerely,
JESSE HELMS
JOSEPH R. BIDEN, Jr.
CHUCK HAGEL
- AuthorsHelms, Sen. JesseBiden, Sen. Joseph R., Jr.Hagel, Sen. Chuck
- Institutional AuthorsSenateForeign Relations Committee
- Cross-ReferenceFor text of the United States-Japan income tax treaty, with notes,
- Subject Area/Tax Topics
- Index Termstax treatieslegislation, tax
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-4990 (1 original page)
- Tax Analysts Electronic Citation2000 TNT 67-33