prop · H20341 · 2014-12-19 00:00:00 — c)Distributions or withdrawals from the fund are allowed only upon the occurrence of specified events related to retirement, disability, or death (except rollover distributions to other retirement funds described in paragraphs A through D of this section or retirement and pension accounts described in subparagraph A(1) of section V of this ), or penalties apply to distributions or withdrawals made before such specified events; or d)Contributions (other than certain permitted makeup contributions) by employees to the fund are limited by reference to earned income of the employee or may not exceed ,000 annually, applying the rules set forth in for account aggregation and currency translation. A fund established in to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: 1.The fund has fewer than 50 participants; 2.The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs; 3.The employee and employer contributions to the fund (other than transfers of assets from treatyqualified retirement funds described in paragraph A of this section or retirement and pension accounts described in subparagraph A(1) of section V of this ) are limited by reference to earned income and compensation of the employee, respectively; 4.Participants that are not residents of are not entitled to more than 20 percent of the fund’s assets; and 5.The fund is subject to government regulation and provides information reporting about its beneficiaries to the relevant tax authorities in . D.A Certain other . A founded in accordance with the Swedish Safeguarding of Pension Commitments, etc. Act (1967:531) [lagen 1967:531) om tryggande av pensionsutfästelse m.m.] and exempted from income tax according to Chapter 7 of the Swedish Income Tax Code (1999:1229). of an Exempt Beneficial Owner. A fund established in by an exempt beneficial owner to provide retirement, disability, or death benefits to beneficiaries or participants that are current or former employees of the exempt beneficial owner (or persons designated by such employees), or that are not current or former employees, if the benefits provided to such beneficiaries or participants are in consideration of personal services performed for the exempt beneficial owner. F.Investment Entity by Exempt Beneficial Owners. An Entity that is a solely because it is an Investment Entity, provided that each direct holder of an Equity Interest in the Entity is an exempt beneficial owner, and each direct holder of a debt interest in such Entity is either a (with respect to a loan made to such Entity) or an exempt beneficial owner. III.Small or Limited Scope Financial Institutions that Qualify as DeemedCompliant FFIs. The following Financial Institutions are NonReporting Swedish Financial Institutions that shall be treated as deemedcompliant FFIs for purposes of section 1471 of the U.S. Internal Revenue Code. with a Local Client Base. A satisfying the following requirements: 1.The Financial Institution must be licensed and regulated as a financial institution under the laws of ; 2.The Financial Institution must have no fixed place of business outside of . For this purpose, a fixed place of business does not include a location that is not advertised to the public and from which the performs solely administrative support functions; 3.The Financial Institution must not solicit or Account Holders outside . For this purpose, a shall not be considered to have solicited or Account Holders outside merely because the (a) operates a website, provided that the website does not specifically indicate that the provides Financial Accounts or services to nonresidents of , and does not otherwise target or solicit U.S. or Account Holders, or (b) advertises in print media or on a radio or television station that is distributed or aired primarily within but is also incidentally distributed or aired in other countries, provided that the advertisement does not specifically indicate that the provides Financial Accounts or services to residents outside , and does not otherwise target or solicit U.S. or Account Holders; 4.The Financial Institution must be required under the laws of to identify resident for purposes of either information reporting or withholding of tax with respect to Financial Accounts held by residents or for purposes of satisfying Swedish AML due diligence requirements; 5.At least 98 percent of the Financial Accounts by value maintained by the must be held by residents (including residents that are Entities) of or a of Union; 6.Beginning on or before 1, 2014, the must have policies and procedures, consistent with those set forth in , to prevent the from providing a Financial Account to any and to monitor whether the opens or maintains a Financial Account for any Specified U.S. Person who is not a resident of (including a U.S. Person that was a resident of when the Financial Account was opened but subsequently ceases to be a resident of ) or any Passive NFFE with Controlling Persons who are U.S. residents or U.S. citizens who are not residents of ; 7.Such policies and procedures must provide that if any Financial Account held by a Specified U.S. Person who is not a resident of or by a Passive NFFE with Controlling Persons who are U.S. residents or U.S. citizens who are not residents of is identified, the must report such Financial Account as would be required if the were a (including by following the applicable registration requirements on the IRS FATCA registration website) or close such Financial Account; 8.With respect to a Preexisting Account held by an individual who is not a resident of or by an Entity, the must review those Preexisting Accounts in accordance with the procedures set forth in applicable to Preexisting Accounts to identify any U.S. Reportable Account or Financial Account held by a , and must report such Financial Account as would be required if the were a (including by following the applicable registration requirements on the IRS FATCA registration website) or close such Financial Account; 9.Each Related Entity of the that is a must be incorporated or organized in and, with the exception of any Related Entity that is a retirement fund described in paragraphs A through D of section II of this , satisfy the requirements set forth in this paragraph A; and 10.The Financial Institution must not have policies or practices that discriminate against opening or maintaining Financial Accounts for individuals who are Specified U.S. Persons and residents of . A satisfying the following requirements: 1.The Financial Institution operates solely as (and is licensed and regulated under the laws of as) (a) a bank or (b) a credit union or similar cooperative credit organization that is operated without profit; 2.The Financial Institution’s business consists primarily of receiving deposits from and making loans to, with respect to a bank, unrelated retail and, with respect to a credit union or similar cooperative credit organization, members, provided that no member has a greater than five percent interest in such credit union or cooperative credit organization; 3.The Financial Institution satisfies the requirements set forth in subparagraphs A(2) and A(3) of this section, provided that, in addition to the limitations on the website described in subparagraph A(3) of this section, the website does not permit the opening of a Financial Account; 4.The Financial Institution does not have more than million in assets on its balance sheet, and the and any Related Entities, taken together, do not have more than million in total assets on their consolidated or combined balance sheets; and 5.Any Related Entity must be incorporated or organized in , and any Related Entity that is a , with the exception of any Related Entity that is a retirement fund described in paragraphs A through E of section II of this or a with only lowvalue accounts described in paragraph C of this section, must satisfy the requirements set forth in this paragraph B. with Only LowValue Accounts. A satisfying the following requirements: 1.The Financial Institution is not an Investment Entity; 2.No Financial Account maintained by the or any Related Entity has a balance or value in excess of ,000, applying the rules set forth in for account aggregation and currency translation; and 3.The Financial Institution does not have more than million in assets on its balance sheet, and the and any Related Entities, taken together, do not have more than million in total assets on their consolidated or combined balance sheets. A satisfying the following requirements: 1.The Financial Institution is a solely because it is an issuer of credit cards that accepts deposits only when a customer makes a payment in excess of a balance due with respect to the card and the overpayment is not immediately returned to the customer; and 2.Beginning on or before 1, 2014, the implements policies and procedures to either prevent a customer deposit in excess of ,000, or to ensure that any customer deposit in excess of ,000, in each case applying the rules set forth in for account aggregation and currency translation, is refunded to the customer within 60 days. For this purpose, a customer deposit does not refer to credit balances to the extent of disputed charges but does include credit balances resulting from merchandise returns. Investment Entities that Qualify as DeemedCompliant FFIs and Other Special Rules. The Financial Institutions described in paragraphs A through F of this section are NonReporting Swedish Financial Institutions that shall be treated as deemedcompliant FFIs for purposes of section 1471 of the U.S. Internal Revenue Code. In addition, paragraph G of this section provides special rules applicable to an Investment Entity. A trust established under the laws of to the extent that the trustee of the trust is a Reporting U.S. , Reporting Model 1 FFI, or Participating FFI and reports all information required to be reported pursuant to the Agreement with respect to all U.S. Reportable Accounts of the trust. A described in subparagraph B(1) or B(2) of this section having a sponsoring entity that complies with the requirements of subparagraph B(3) of this section. 1.A is a sponsored investment entity if (a)it is an Investment Entity established in that is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury Regulations; and (b) an Entity has agreed with the to act as a sponsoring entity for the . 2.A is a sponsored controlled foreign corporation if (a) the is a controlled foreign corporation1 organized under the laws of that is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury Regulations; (b) the is owned, directly or indirectly, by a Reporting U.S. that agrees to act, or requires an affiliate of the to act, as a sponsoring entity for the ; and (c) the shares a common electronic account system with the sponsoring entity that enables the sponsoring entity to identify all Account Holders and payees of the and to access all account and customer information maintained by the Financial Institution including, but not limited to, customer identification information, customer documentation, account balance, and all payments made to the Account Holder or payee. 3.The sponsoring entity complies with the following requirements: a)The sponsoring entity is authorized to act on behalf of the (such as a fund manager, trustee, corporate director, or managing partner) to fulfill applicable registration requirements on the IRS FATCA registration website; b)The sponsoring entity has registered as a sponsoring entity with the IRS on the IRS FATCA registration website; c)If the sponsoring entity identifies any U.S. Reportable Accounts with respect to the , the sponsoring entity registers the pursuant to applicable registration requirements on the IRS FATCA registration website on or before the later of , 2015 and the date that is 90 days after such a U.S. Reportable Account is first identified; d)The sponsoring entity agrees to perform, on behalf of the , all due diligence, withholding, reporting, and other requirements that the Financial 1 A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total combined voting power of all of stock of such corporation entitled to vote, or the total value of the stock of such corporation, is owned, or is considered as owned, by “shareholders” on any day during the taxable year of such foreign corporation. The term a “shareholder” means, with respect to any foreign corporation, a person who owns, or is considered as owning, 10 percent or more of the total combined voting power of all of stock entitled to vote of such foreign corporation. Institution would have been required to perform if it were a ; e)The sponsoring entity identifies the and includes the identifying number of the (obtained by following applicable registration requirements on the IRS FATCA registration website) in all reporting completed on the ’s behalf; and f)The sponsoring entity has not had its status as a sponsor revoked. C.Sponsored, Vehicle. A satisfying the following requirements: 1.The Financial Institution is a solely because it is an Investment Entity and is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. 2.The sponsoring entity is a Reporting U.S. , Reporting Model 1 FFI, or Participating FFI, is authorized to act on behalf of the (such as a professional manager, trustee, or managing partner), and agrees to perform, on behalf of the , all due diligence, withholding, reporting, and other requirements that the would have been required to perform if it were a ; 3.The Financial Institution does not hold itself out as an investment vehicle for unrelated parties; 4.Twenty or fewer individuals own all of the debt interests and Equity Interests in the (disregarding debt interests owned by Participating FFIs and deemedcompliant FFIs and Equity Interests owned by an Entity if that Entity owns 100 percent of the Equity Interests in the and is itself a sponsored described in this paragraph C); and 5.The sponsoring entity complies with the following requirements: a)The sponsoring entity has registered as a sponsoring entity with the IRS on the IRS FATCA registration website; b)The sponsoring entity agrees to perform, on behalf of the , all due diligence, withholding, reporting, and other requirements that the would have been required to perform if it were a and retains documentation collected with respect to the for a period of six years; c)The sponsoring entity identifies the Financial Institution in all reporting completed on the Financial Institution’s behalf; and d)The sponsoring entity has not had its status as a sponsor revoked. D.Investment Advisors and Investment Managers. Entity established in that is a solely because it (1) renders investment advice to, and acts on behalf of, or (2) manages portfolios for, and acts on behalf of, a customer for the purposes of investing, managing, or administering funds deposited in the name of a customer with a other than a . E.Profitsharing foundation (). An Entity that is established in as a profit sharing foundation () in by an employer for the benefit of employees that perform personal services in , provided that the profit sharing foundation is supervised by an official authority ([]), distributions from the profit sharing foundation are reported to the Swedish tax authorities, and employees are subject to tax in upon a distribution from the profit sharing plan. Entity established in that is regulated as a collective investment vehicle, provided that all of the interests in the collective investment vehicle (including debt interests in excess of ,000) are held by or through one or more exempt beneficial owners, NFFEs described in subparagraph B(4) of section VI of , U.S. Persons that are not Specified U.S. Persons, or Financial Institutions that are not Nonparticipating Financial Institutions. The following rules apply to an Investment Entity: 1.With respect to interests in an Investment Entity that is a collective investment vehicle described in paragraph F of this section, the reporting obligations of any Investment Entity (other than a through which interests in the collective investment vehicle are held) shall be deemed fulfilled. 2.With respect to interests in: a)Entity established in a Partner Jurisdiction that is regulated as a collective investment vehicle, all of the interests in which (including debt interests in excess of ,000) are held by or through one or more exempt beneficial owners, NFFEs described in subparagraph B(4) of section VI of , U.S. Persons that are not Specified U.S. Persons, or Financial Institutions that are not Nonparticipating Financial Institutions; or b)Entity that is a qualified collective investment vehicle under relevant U.S. the reporting obligations of any Investment Entity that is a (other than a through which interests in the collective investment vehicle are held) shall be deemed fulfilled. 3.With respect to interests in an Investment Entity established in that is not described in paragraph F or subparagraph G(2) of this section, consistent with paragraph 3 of Article 5 of the Agreement, the reporting obligations of all other Investment Entities with respect to such interests shall be deemed fulfilled if the information required to be reported by the firstmentioned Investment Entity pursuant to the Agreement with respect to such interests is reported by such Investment Entity or another person. 4.An Investment Entity established in that is regulated as a collective investment vehicle shall not fail to qualify under paragraph F or subparagraph G(2) of this section, or otherwise as a deemedcompliant FFI, solely because the collective investment vehicle has issued physical shares in bearer form, provided that: a)The collective investment vehicle has not issued, and does not issue, any physical shares in bearer form after , 2012; b)The collective investment vehicle retires all such shares upon surrender; c)The collective investment vehicle (or a ) performs the due diligence procedures set forth in and reports any information required to be reported with respect to any such shares when such shares are presented for redemption or other payment; and d)The collective investment vehicle has in place policies and procedures to ensure that such shares are redeemed or immobilized as soon as possible, and in any event prior to January 1, 2017. V.Accounts Excluded from Financial Accounts. The following accounts are excluded from the definition of Financial Accounts and therefore shall not be treated as U.S. A.Certain Savings Accounts. 1.Retirement and Pension Account. A retirement or pension account maintained in that satisfies the following requirements under the laws of . a)The account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or pension plan for the provision of retirement or pension benefits (including disability or death benefits); b)The account is taxfavored (i.e., contributions to the account that would otherwise be subject to tax under the laws of are deductible or excluded from the gross income of the account holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate); c)Annual information reporting is required to the tax authorities in with respect to the account; d)Withdrawals are conditioned on reaching a specified retirement age, disability, or death, or penalties apply to withdrawals made before such specified events; and e)Either (i) annual contributions are limited to ,000 or less, or (ii) there is a maximum lifetime contribution limit to the account of ,000,000 or less, in each case applying the rules set forth in for account aggregation and currency translation. 2.NonRetirement Savings Accounts. An account maintained in (other than an insurance or ) that satisfies the following requirements under the laws of . a)The account is subject to regulation as a savings vehicle for purposes other than for retirement; b)The account is taxfavored (i.e., contributions to the account that would otherwise be subject to tax under the laws of are deductible or excluded from the gross income of the account holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate); c)Withdrawals are conditioned on meeting specific criteria related to the purpose of the savings account (for example, the provision of educational or benefits), or penalties apply to withdrawals made before such criteria are met; and d)Annual contributions are limited to ,000 or less, applying the rules set forth in for account aggregation and currency translation. B.Certain Other Retirement Accounts or Products. insurance contract established and maintained in , that is deemed to be a “Pensionsförsäkring” according to the Swedish Income Tax Code (1999:1229), provided that: 1.Contributions to insurance contract are made by an employer for the benefit of an employee performing personal services in ; 2.Distributions or withdrawals from the contract are allowed only upon the occurrence of retirement, death, or disability of the employee; 3.Distributions are reported to the Swedish tax authorities; and 4.Upon distribution the employee is subject to tax in . A life insurance contract maintained in with a coverage period that will end before the insured individual attains age 90, provided that the contract satisfies the following requirements: 1.Periodic premiums, which do not decrease over time, are payable at least annually during the period the contract is in existence or until the insured attains age 90, whichever is shorter; 2.The contract has no contract value that any person can access (by withdrawal, loan, or otherwise) without terminating the contract; 3.The amount (other than a death benefit) payable upon cancellation or termination of the contract cannot exceed the aggregate premiums paid for the contract, less the sum of mortality, morbidity, and expense charges (whether or not actually imposed) for the period or periods of the contract’s existence and any amounts paid prior to the cancellation or termination of the contract; and 4.The contract is not held by a transferee for value. D.Account an Estate. An account maintained in that is held solely by an estate if the documentation for such account includes a copy of the deceased’s will or death certificate. An account maintained in established in connection with any of the following: 1.A court order or judgment. 2.A sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements: a)The account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure an obligation directly related to the transaction, or a similar payment, or is funded with a financial asset that is deposited in the account in connection with the sale, exchange, or lease of the property; b)The account is established and used solely to secure the obligation of the purchaser to pay the purchase price for the property, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased property as agreed under the lease; c)The assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee