United States-Federal Republic of Germany Convention on Taxation and Fiscal Evasion Message to the Senate Transmitting the Convention.

To the Senate of the United States:

I transmit herewith for Senate advice and consent to ratification, 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 Estates, Inheritances and Gifts (the Convention), signed at Bonn on December 3, 1980. For the information of the Senate, I also transmit the report of the Department of State with respect to the Convention.

The Convention is the first of its kind to be negotiated between the United States and the Federal Republic of Germany. It will apply, in the United States, to the Federal estate tax, the Federal gift tax, and the Federal tax on generation-skipping transfers, and in the Federal Republic of Germany, to the inheritance and gift tax.

In general, the Convention is similar to the estate and gift tax convention with the United Kingdom, which entered into force on November 11, 1979, and to the United States estate and gift tax convention with France, which entered into force on October 1, 1980.

The principle underlying the Convention is that the country of domicile may tax the estate and gifts of a decedent or donor on a worldwide basis, but must credit tax paid to the other State with respect to certain types of property located therein.

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

JIMMY CARTER

The White House,

January 15, 1981.