FROM THE OFFICE OF PUBLIC AFFAIRS

The United States and the Republic of Slovenia will begin negotiation of an income tax treaty in Washington on November 30, 1998. If successful, these negotiations will lead to the first income tax treaty between the two countries.

The negotiations will be based on the U.S. model treaty and Slovenia treaty policy, both of which draw on the Organisation for Economic Co-Operation and Development (OECD) model treaty. The treaty will deal with the taxation of income, from business activities, investment and personal services, derived by residents of one country from the other country. It will contain provisions to avoid double taxation, to ensure non-discrimination and to prevent abuse of the treaty. It will also provide for exchange of information and other administrative cooperation between the tax authorities of the two countries.

The Treasury Department invites comments from the public regarding the upcoming negotiations. Persons wishing to comment on the proposed treaty are invited to send their written comments to Joseph H. Guttentag, Deputy Assistant Secretary (International Tax Affairs), Room 1334 Main Treasury, Washington, D.C. 20220. They may also submit comments by fax to (202) 622-0605, or by e-mail to joseph.guttentag@treas.sprint.com.