TAX CONVENTION WITH THE REPUBLIC OF TUNISIA, WITH SUPPLEMENTARY PROTOCOL

REPORT

OF THE

COMMITTEE ON FOREIGN RELATIONS

UNITED STATES SENATE

ON

TREATY DOCUMENTS 99-13, 99TH CONGRESS, 2D SESSION AND 1019, 101ST CONGRESS, 2D SESSION, TAX CONVENTION WITH TUNISIA, WITH SUPPLEMENTARY PROTOCOL

39-119

JULY 27 (legislative day, JULY 10), 1990.-Ordered to be printed

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1990

TAX CONVENTION WITH THE REPUBLIC OF TUNISIA, WITH SUPPLEMENTARY PROTOCOL

JULY 27 (legislative day, JULY 10), 1990.-Ordered to be printed

Mr. PELL, from the Committee on Foreign Relations,
submitted the following

REPORT

[To accompany Treaty Docs. 99-13, 99th Congress, 2d Session and 101-9, 101st Congress, 2d Session]

The Committee on Foreign Relations, to which was referred the Convention between the Government of the United States of America and the Government of the Tunisian Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, together with an exchange of notes, signed at Washington on June 17, 1985, and a supplementary protocol, signed at Tunis on October 4, 1989, having considered the same, reports favorably thereon and recommends that the Senate give its advice and consent to ratification thereof.

I. PURPOSE

The principal purposes of the proposed income tax treaty between the United States and the Republic of Tunisia ("Tunisia") are to reduce or eliminate double taxation of income earned by citizens and residents of either country from sources within the other country, and to prevent avoidance or evasion of the income taxes of the two countries. The proposed treaty is intended to promote closer economic cooperation between the two countries and to eliminate possible barriers to trade caused by overlapping taxing jurisdictions of the two countries. It is intended to enable the countries to cooperate in preventing avoidance and evasion of taxes.

II. BACKGROUND

The proposed treaty with Tunisia was signed on June 17, 1985. The proposed treaty was amplified by an exchange of notes signed the same day. The supplementary protocol to the proposed treaty