Message to the Senate Transmitting the Malta-United States Taxation Convention

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 Malta for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Respect to Taxes on Income, signed on August 8, 2008, at Valletta (the "proposed Convention"). I also transmit for the information of the Senate the report of the Department of State, which includes an Overview of the proposed Convention.

The proposed Convention provides for reduced withholding rates on cross-border payments of dividends, interest, royalties, and other income. The proposed Convention contains a restrictive provision designed to prevent "treaty shopping," which is the inappropriate use of a tax treaty by third-country residents. The proposed Convention also provides for the exchange of information between the competent authorities to facilitate the administration of each country's tax laws.

I recommend that the Senate give early and favorable consideration to the proposed Convention and give its advice and consent to ratification.

GEORGE W. BUSH

The White House, January 15, 2009.