I.
Communication from the Government of Aruba to the Government of the United States of America
August 9, 1986
The Ministry of General Affairs of Aruba presents its compliments to the Consulate General of the United States of America and refers to the Government of the United States of America's communication of this date regarding the Convention between the Government of the United States of America and the Government of the Netherlands in respect of Aruba for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed today. The communication contains the following understandings:
During the course of the negotiations of the Convention, the delegation of Aruba raised several questions regarding the effect of pending tax reform legislation in the United States on certain provisions of the treaty.
Both delegations acknowledged that the negotiations were based on current tax laws of the two jurisdictions. It was noted that aspects of the United States tax reform legislation, such as the branch profits tax proposal, may, if enacted, materially affect the balance of benefits reflected in the treaty. However, until final legislation has been enacted, it not possible to anticipate what effect, if any, such legislation may have. Neither delegation wishes to delay conclusion of the treaty pending enactment of the legislation. It was, therefore, agreed that if, after signature of the Convention, legislation is enacted in the United States which materially affects the treaty, the United States and Aruba would reopen negotiations in order to assess the impact of the legislation on the treaty and to negotiate amendments as may be necessary or appropriate to reestablish a balance of benefits.
The Ministry of General Affairs confirms that the foregoing understandings are in accord with the view of the Government of Aruba and are approved by it.
II.
Communication from the Government of the United States of America to the Government of Aruba
August 9, 1986
The Consulate General of the United States of America presents its compliments to the Ministry of General Affairs of Aruba and refers to the Government of Aruba's communication of this date regarding the convention between the Government of the United States of America and the Government of the Netherlands in respect of Aruba for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, signed today. The communication contains the following understandings:
During the course of the negotiations of the Convention, the delegation of Aruba raised several questions regarding the effect of pending tax reform legislation in the United States on certain provisions of the treaty.
Both delegations acknowledged that the negotiations were based on current tax laws of the two jurisdictions. It was noted that aspects of the United States tax reform legislation, such as the branch profits tax proposal, may, if enacted, materially affect the balance of benefits reflected in the treaty. However, until final legislation has been enacted, it not possible to anticipate what effect, if any, such legislation may have. Neither delegation wishes to delay conclusion of the treaty pending enactment of the legislation. It was, therefore, agreed that if, after signature of the Convention, legislation is enacted in the United States which materially affects the treaty, the United States and Aruba would reopen negotiations in order to assess the impact of the legislation on the treaty and to negotiate amendments as may be necessary or appropriate to reestablish a balance of benefits.
The Consulate General confirms that the foregoing understandings are in accord with the view of the Government of the United States and are approved by it.
