prop · H20341 · 2014-12-19 00:00:00 — Internal Revenue Code. kk)The term “U.S. ” means a U.S. federal taxpayer identifying number. ll)The term “Swedish ” means a Swedish taxpayer identifying number. mm)The term “Controlling Persons” means the natural persons who exercise control over an Entity. In the case of a trust, such term means the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust, and in the case of a legal arrangement other than a trust, such term means persons in equivalent or similar positions. The term “Controlling Persons” shall be interpreted in a consistent with the Financial Action Task Force Recommendations. term not otherwise defined in this Agreement shall, unless the context otherwise requires or the agree to a common meaning (as permitted by domestic law), have the meaning that it has at that time under the law of the Party applying this Agreement, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party. Obligations to Obtain and Exchange Information with Respect to 1.Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the information specified in paragraph 2 of this Article with respect to all Reportable Accounts and shall annually exchange this information with the other Party on an automatic basis pursuant to the provisions of Article 26 of the Convention. 2.The information to be obtained and exchanged is: a)In the case of with respect to each U.S. Reportable Account of each : (1)the name, address, and U.S. of each Specified U.S. Person that is an Account Holder of such account and, in the case of a NonU.S. Entity that, after application of the due diligence procedures set forth in , is identified as having one or more Controlling Persons that is a Specified U.S. Person, the name, address, and U.S. (if any) of such entity and each such Specified U.S. (2)the account number (or functional equivalent in the absence of an account number); (3)the name and identifying number of the ; (4)the account balance or value (including, in the case of a or , the Cash Value or surrender value) as of the end of the relevant calendar year or other appropriate reporting period or, if the account was closed during such year, immediately before closure; (5)in the case of any Custodial Account: (A)the total gross amount of interest, the total gross amount of dividends, and the total gross amount of other income generated with respect to the assets held in the account, in each case paid or credited to the account (or with respect to the account) during the calendar year or other appropriate reporting period; and (B)the total gross proceeds from the sale or redemption of property paid or credited to the account during the calendar year or other appropriate reporting period with respect to which the acted as a custodian, broker, nominee, or otherwise as an agent for the Account Holder; (6)in the case of any Depository Account, the total gross amount of interest paid or credited to the account during the calendar year or other appropriate reporting period; and (7)in the case of any account not described in subparagraph 2(a)(5) or 2(a)(6) of this Article, the total gross amount paid or credited to the Account Holder with respect to the account during the calendar year or other appropriate reporting period with respect to which the is the obligor or debtor, including the aggregate amount of any redemption payments made to the Account Holder during the calendar year or other appropriate reporting period. b)In the case of the , with respect to each Swedish Reportable Account of each Reporting U.S. (1)the name, address, and Swedish of any person that is a resident of and is an Account Holder of the account; (2)the account number (or the functional equivalent in the absence of an account number); (3)the name and identifying number of the Reporting U.S. (4)the gross amount of interest paid on a Depository Account; (5)the gross amount of U.S. source dividends paid or credited to the account; and (6)the gross amount of other U.S. source income paid or credited to the account, to the extent subject to reporting under chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal Revenue Code. Time and of Exchange of Information 1.For purposes of the exchange obligation in Article 2 of this Agreement, the amount and characterization of payments made with respect to a U.S. Reportable Account may be determined in accordance with the principles of the tax laws of , and the amount and characterization of payments made with respect to a Swedish Reportable Account may be determined in accordance with principles of U.S. federal income tax law. 2.For purposes of the exchange obligation in Article 2 of this Agreement, the information exchanged shall identify the currency in which each relevant amount is denominated. 3.With respect to paragraph 2 of Article 2 of this Agreement, information is to be obtained and exchanged with respect to 2014 and all subsequent years, except that: a)In the case of : (1)the information to be obtained and exchanged with respect to 2014 is only the information described in subparagraphs 2(a)(1) through 2(a)(4) of Article 2 of this Agreement; (2)the information to be obtained and exchanged with respect to 2015 is the information described in subparagraphs 2(a)(1) through 2(a)(7) of Article 2 of this Agreement, except for gross proceeds described in subparagraph 2(a)(5)(B) of Article 2 of this Agreement; and (3)the information to be obtained and exchanged with respect to 2016 and subsequent years is the information described in subparagraphs 2(a)(1) through 2(a)(7) of Article 2 of this Agreement; b)In the case of the , the information to be obtained and exchanged with respect to 2014 and subsequent years is all of the information identified in subparagraph 2(b) of Article 2 of this Agreement. 4.Notwithstanding paragraph 3 of this Article, with respect to each Reportable Account that is maintained by a as of 30, 2014, and subject to paragraph 4 of Article 6 of this Agreement, the Parties are not required to obtain and include in the exchanged information the Swedish or the U.S. , as applicable, of any relevant person if such taxpayer identifying number is not in the records of the . In such a case, the Parties shall obtain and include in the exchanged information the date of birth of the relevant person, if the has such date of birth in its records. 5.Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of this Agreement shall be exchanged within nine months after the end of the calendar year to which the information relates. 6.The Competent Authorities of and the enter into an agreement or arrangement under the mutual agreement procedure provided for in Article 25 of the Convention, which shall: a)establish the procedures for the automatic exchange obligations described in Article 2 of this Agreement; b)prescribe rules and procedures as may be necessary to implement Article 5 of this Agreement; and c)establish as necessary procedures for the exchange of the information reported under subparagraph 1(b) of Article 4 of this Agreement. 7.All information exchanged shall be subject to the confidentiality and other protections provided for in the Convention, including the provisions limiting the use of the information exchanged. 8.Following entry into force of this Agreement, each Competent Authority shall provide written notification to the other Competent Authority when it is satisfied that the jurisdiction of the other Competent Authority has in place (i) appropriate safeguards to ensure that the information received pursuant to this Agreement shall remain confidential and be used solely for tax purposes, and (ii) the infrastructure for an effective exchange relationship (including established processes for ensuring timely, accurate, and confidential information exchanges, effective and reliable communications, and demonstrated capabilities to promptly resolve questions and concerns about exchanges or requests for exchanges and to administer the provisions of Article 5 of this Agreement). shall endeavor in good faith to meet, prior to , to establish that each jurisdiction has such safeguards and infrastructure in place. 9.The obligations of the Parties to obtain and exchange information under Article 2 of this Agreement shall take effect on the date of the later of the written notifications described in paragraph 8 of this Article. Notwithstanding the foregoing, if the Swedish Competent Authority is satisfied that the has the safeguards and infrastructure described in paragraph 8 of this Article in place, but additional time is necessary for the U.S. Competent Authority to establish that has such safeguards and infrastructure in place, the obligation of to obtain and exchange information under Article 2 of this Agreement shall take effect on the date of the written notification provided by the Swedish Competent Authority to the U.S. Competent Authority pursuant to paragraph 8 of this Article. 10.This Agreement shall terminate on , 2015, if Article 2 of this Agreement is not in effect for either Party pursuant to paragraph 9 of this Article by that date. Application of FATCA to Swedish Financial Institutions Treatment of Reporting Swedish Financial Institutions. shall be treated as complying with, and not subject to withholding under, section 1471 of the U.S. Internal Revenue Code if complies with its obligations under Articles 2 and 3 of this Agreement with respect to such , and the : a)identifies U.S. Reportable Accounts and reports annually to the Swedish Competent Authority the information required to be reported in subparagraph 2(a) of Article 2 of this Agreement in the time and described in Article 3 of this Agreement; b)for each of 2015 and 2016, reports annually to the Swedish Competent Authority the name of each to which it has made payments and the aggregate amount of such payments; c)complies with the applicable registration requirements on the IRS FATCA registration website; d)to the extent that a is (i) acting as a qualified intermediary (for purposes of section 1441 of the U.S. Internal Revenue Code) that has elected to assume primary withholding responsibility under chapter 3 of subtitle A of the U.S. Internal Revenue Code, (ii) a foreign partnership that has elected to act as a withholding foreign partnership (for purposes of both sections 1441 and 1471 of the U.S. Internal Revenue Code), or (iii) a foreign trust that has elected to act as a withholding foreign trust (for purposes of both sections 1441 and 1471 of the U.S. Internal Revenue Code), withholds 30 percent of any U.S. Source Withholdable Payment to any ; and e)in the case of a that is not described in subparagraph 1(d) of this Article and that makes a payment of, or acts as an intermediary with respect to, a U.S. Source Withholdable Payment to any , the provides to any immediate payor of such U.S. Source Withholdable Payment the information required for withholding and reporting to occur with respect to such payment. Notwithstanding the foregoing, a with respect to which the conditions of this paragraph 1 are not satisfied shall not be subject to withholding under section 1471 of the U.S. Internal Revenue Code unless such is treated by the IRS as a pursuant to subparagraph 2(b) of Article 5 of this Agreement. Suspension of Rules Relating to Recalcitrant Accounts. The not require a to withhold tax under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an account held by a recalcitrant account holder (as defined in section 1471(d)(6) of the U.S. Internal Revenue Code), or to close such account, if the U.S. Competent Authority receives the information set forth in subparagraph 2(a) of Article 2 of this Agreement, subject to the provisions of Article 3 of this Agreement, with respect to such account. Specific Treatment of Swedish Retirement Plans. The treat as deemedcompliant FFIs or exempt beneficial owners, as appropriate, for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, Swedish retirement plans described in . For this purpose, a Swedish retirement plan includes an Entity established or located in, and regulated by, , or a predetermined contractual or legal arrangement, operated to provide pension or retirement benefits or earn income for providing such benefits under the laws of and regulated with respect to contributions, distributions, reporting, sponsorship, and taxation. Identification and Treatment of Other DeemedCompliant FFIs and Exempt Beneficial Owners. The treat each as a deemed compliant FFI or as an exempt beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code. Special Rules Regarding Related Entities and Branches That Are Nonparticipating Financial Institutions. If a , that otherwise meets the requirements described in paragraph 1 of this Article or is described in paragraph 3 or 4 of this Article, has a Related Entity or branch that operates in a jurisdiction that prevents such Related Entity or branch from fulfilling the requirements of a participating FFI or deemedcompliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code or has a Related Entity or branch that is treated as a solely due to the expiration of the transitional rule for limited FFIs and limited branches under relevant U.S. Treasury Regulations, such shall continue to be in compliance with the terms of this Agreement and shall continue to be treated as a deemedcompliant FFI or exempt beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code, provided that: a)the treats each such Related Entity or branch as a separate for purposes of all the reporting and withholding requirements of this Agreement and each such Related Entity or branch identifies itself to withholding agents as a ; b)each such Related Entity or branch identifies its U.S. accounts and reports the information with respect to those accounts as required under section 1471 of the U.S. Internal Revenue Code to the extent permitted under the relevant laws pertaining to the Related Entity or branch; and c)such Related Entity or branch does not specifically solicit U.S. accounts held by persons that are not resident in the jurisdiction where such Related Entity or branch is located or accounts held by Nonparticipating Financial Institutions that are not established in the jurisdiction where such Related Entity or branch is located, and such Related Entity or branch is not used by the or any other Related Entity to circumvent the obligations under this Agreement or under section 1471 of the U.S. Internal Revenue Code, as Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 of this Agreement: not be obligated to obtain and exchange information with respect to a calendar year that is prior to the calendar year with respect to which similar information is required to be reported to the IRS by participating FFIs pursuant to relevant U.S. b) not be obligated to begin exchanging information prior to the date by which participating FFIs are required to report similar information to the IRS under relevant U.S. c) the not be obligated to obtain and exchange information with respect to a calendar year that is prior to the first calendar year with respect to which is required to obtain and exchange information; and not be obligated to prior to the date by which is required to begin exchanging information. Coordination of Definitions with U.S. Notwithstanding Article 1 of this Agreement and the definitions provided in the Annexes to this Agreement, in implementing this Agreement, may use, and may permit Swedish Financial Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a corresponding definition in this Agreement, provided that such application would not frustrate the purposes of this Agreement. Collaboration on Compliance and Enforcement and Administrative Errors. A Competent Authority shall notify the Competent Authority of the other Party when the first mentioned Competent Authority has reason to believe that administrative errors or other minor errors may have led to incorrect or incomplete information reporting or resulted in other infringements of this Agreement. The Competent Authority of such other Party shall apply its domestic law (including applicable penalties) to obtain corrected and/or complete information or to resolve other infringements of this Agreement. a)A Competent Authority shall notify the Competent Authority of the other Party when the firstmentioned Competent Authority has determined that there is significant noncompliance with the obligations under this Agreement with respect to a in the other jurisdiction. The Competent Authority of such other Party shall apply its domestic law (including applicable penalties) to address the significant noncompliance described in the notice. b)If, in the case of a , such enforcement actions do not resolve the noncompliance within a period of 18 months after notification of significant noncompliance is first provided, the treat the as a pursuant to this subparagraph 2(b). 3.Reliance on Providers. Each Party may allow Reporting Financial Institutions to use third party service providers to fulfill the obligations imposed on such Reporting Financial Institutions by a Party, as contemplated in this Agreement, but these obligations shall remain the responsibility of the Reporting Financial Institutions. 4.Prevention of Avoidance. The Parties shall implement as necessary requirements to prevent Financial Institutions from adopting practices intended to circumvent the reporting required under this Agreement. Mutual Commitment to Continue to Enhance the Effectiveness of The Government of the acknowledges the need to achieve equivalent levels of reciprocal automatic information exchange with . The Government of the is committed to further improve transparency and enhance the exchange relationship with by pursuing the adoption of regulations and advocating and supporting relevant legislation to achieve such equivalent levels of reciprocal automatic information exchange. 2.Treatment of Passthru Payments and Gross Proceeds. The Parties are committed to work together, along with Partner Jurisdictions, to develop a practical and effective alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden. Development of Common Reporting and Exchange Model. The Parties are committed to working with Partner Jurisdictions, , and Union, on adapting the terms of this Agreement and other agreements between the and Partner Jurisdictions to a common model for automatic exchange of information, including the development of reporting and due diligence standards for financial institutions. Documentation of Accounts Maintained as of 30, 2014. With respect to Reportable Accounts maintained by a as of 30, 2014: a)The commits to establish, by January 1, 2017, for reporting with respect to 2017 and subsequent years, rules requiring Reporting U.S. Financial Institutions to obtain and report the Swedish of each Account Holder of a Swedish Reportable Account as required pursuant to subparagraph 2(b)(1) of Article 2 of this Agreement; and b)commits to establish, by January 1, 2017, for reporting with respect to 2017 and subsequent years, rules requiring Reporting Swedish Financial Institutions to obtain the U.S. of each Specified U.S. Person as required pursuant to subparagraph 2(a)(1) of Article 2 of this Agreement. Consistency in the Application of FATCA to Partner Jurisdictions be granted the benefit of any more favorable terms under Article 4 or of this Agreement relating to the application of FATCA to Swedish Financial Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement pursuant to which the other Partner Jurisdiction commits to undertake the same obligations as described in Articles 2 and 3 of this Agreement, and subject to the same terms and conditions as described therein and in Articles 5 through 9 of this Agreement. 2.The notify of any such more favorable terms, and such more favorable terms shall apply automatically under this Agreement as if such terms were specified in this Agreement and effective as of the date of the signing of the agreement incorporating the more favorable terms, unless declines in writing the application thereof. 1.In case any difficulties in the implementation of this Agreement arise, either Party may request consultations to develop appropriate measures to ensure the fulfillment of this Agreement. 2.This Agreement may be amended by written mutual agreement of the Parties. Unless otherwise agreed upon, such an amendment shall enter into force through the same procedures as set forth in paragraph 1 of Article 10 of this Agreement. The Annexes form an integral part of this Agreement. 1.This Agreement shall enter into force on the date of ’s written notification to the that has completed its necessary internal procedures for entry into force of this Agreement. 2.Either Party may terminate this Agreement by giving notice of termination in writing to the other Party. Such termination shall become effective on the first day of the month following the expiration of a period of 12 months after the date of the notice of termination. 3.The Parties shall, prior to , 2016, consult in good faith to amend this Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this Agreement. In witness whereof, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement. Done at , in duplicate, in the English language, this 8th day of FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF AND REPORTING ON U.S. ON PAYMENTS TO CERTAIN NONPARTICIPATING A.Sweden shall require that Reporting Swedish Financial Institutions apply the due diligence procedures contained in this to identify U.S. Reportable Accounts and accounts held by Nonparticipating Financial Institutions. B.For purposes of the Agreement, 1.All dollar amounts are in U.S. dollars and shall be read to include the equivalent in other currencies. 2.Except as otherwise provided herein, the balance or value of an account shall be determined as of the last day of the calendar year or other appropriate reporting period. 3.Where a balance or value threshold is to be determined as of 30, 2014 under this , the relevant balance or value shall be determined as of that day or the last day of the reporting period ending immediately before 30, 2014, and where a balance or value threshold is to be determined as of the last day of a calendar year under this , the relevant balance or value shall be determined as of the last day of the calendar year or other appropriate reporting period. 4.Subject to subparagraph E(1) of section II of this , an account shall be treated as a U.S. Reportable Account beginning as of the date it is identified as such pursuant to the due diligence procedures in this . 5.Unless otherwise provided, information with respect to a U.S. Reportable Account shall be reported annually in the calendar year following the year to which the information relates. C.As an alternative to the procedures described in each section of this , may permit Reporting Swedish Financial Institutions to rely on the procedures described in relevant U.S. Treasury Regulations to establish whether an account is a U.S. Reportable Account or an account held by a .