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Chronological File 1/1/73 - 12/31/73 [3 of 3]

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Sept.19,1973 RDC TO THE SENATE OF THE UNITED STATES: FI11-4 With a view to receiving the advice and consent of the Senate to ratification, I transmit herewith the Convention between the United States of America and the Union of Soviet Socialist Republics on Matters of Taxation, with related letters, signed at Washington on June 20, 1973. For the information of the Senate, I transmit also the report of the Department of State with respect to the Convention. The primary purpose of this Convention is to promote economic and cultural relations between the two countries by eliminating tax barriers to the extent possible. The general content of the Convention is similar to conventions between the United States and other countries on the avoidance of double taxation on income. However, because of dissimilarities between the tax systems of the two countries and the limited experience of each with the tax system of the other, in this Convention somewhat more emphasis than usual is given to tax exemptions. Through its system of exemptions, the Convention should largely insulate the entities and citizens of the respective parties from income tax in the other state. As with most tax conventions, a principal benefit is to free to a great extent the companies and persons involved from the compliance and administrative problems of dealing with a foreign tax system. This, in turn, can be expected to contribute to the smooth development of United States-Soviet Union trade, cooperation, and exchanges. I recommend that the Senate give prompt consideration to the convention and consent to its ratification. Zip THE WHITE HOUSE, RECEIVED 1973 SEP 191973 CENTRAL FILES to the Senato: 9/19/73 (Nown)

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