FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department on Monday announced that a new income tax treaty with Denmark entered into force on March 31, 2000. The treaty, to which the U.S. Senate gave advice and consent to ratification in November, 1999, replaces the existing tax treaty between the United States and Denmark, which was signed in 1948.

On March 31, Denmark notified the United States that Denmark had complied with the constitutional requirements for entry into force of the bilateral income tax treaty between the two countries. The United States had previously provided reciprocal notification to the Denmark, and accordingly, the treaties entered into force on March 31. The treaties apply, with respect to taxes withheld at source, in respect of amounts paid or credited on or after May 1, 2000 and, with regard to other taxes, in respect of taxable years beginning on or after January 1, 2001.