TREATIES AND OTHER INTERNATIONAL ACTS SERIES 15-409

________________________________________________________________________

TAXATION

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA

and the NETHERLANDS

Signed at The Hague December 18, 2013 

with

Annexes
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 NETHERLANDS 

 

 Taxation: Foreign Account Tax Compliance 

 Agreement signed at The Hague December 18, 2013;

 Entered into force April 9, 2015.

 With annexes.
Whereas, 

AGREEMENT 

BETWEEN 

THE UNITED STATES OF AMERICA 

AND 

THE KINGDOM OF THE NETHERLANDS 

TO IMPROVE INTERNATIONAL TAX COMPLIANCE 

AND TO IMPLEMENT FATCA 

the United States of America 

and 

the Kingdom of the Netherlands, 

(each, a "Party," and together, the "Parties") have a longstanding and close 

relationship with respect to mutual assistance in tax matters in respect of the 

United States and the Netherlands and desire to conclude an agreement to 

improve international tax compliance by further building on that relationship; 

Whereas, Article 30 of the Convention between the United States of America and 

the Kingdom of the Netherlands for the Avoidance of Double Taxation and the 

Prevention of Fiscal Evasion with Respect to Taxes on Income, signed at 

Washington on 18 December 1992, as amended in 1993 and 2004 ("the Double 

Tax Convention") and the Convention on Mutual Administrative Assistance in Tax 

Matters, done at Strasbourg on 25 January 1988 (the "Mutual Assistance 

Convention") authorize exchange of information for tax purposes, including on an 

automatic basis (hereinafter the "Conventions" refers to the Double Tax 

Convention and the Mutual Assistance Convention and any amendments to those 

conventions that are in force for both Parties); 

Whereas, the United States of America enacted provisions commonly known as 

the Foreign Account Tax Compliance Act ("FATCA"), which introduce a reporting 

regime for financial institutions with respect to certain accounts; 

Whereas, the Government of the Netherlands is supportive of the underlying 

policy goal of FATCA to improve tax compliance; 

Whereas, FATCA has raised a number of issues, including that Netherlands 

financial institutions may not be able to comply with certain aspects of FATCA 

due to domestic legal impediments; 

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Whereas, the Government of the United States of America collects information 

regarding certain accounts maintained by U.S. financial institutions held by 

residents of the Netherlands and is committed to exchanging such information 

with the Government of the Netherlands and pursuing equivalent levels of 

exchange; 

Whereas, the Governments of the United States and the Netherlands are 

committed to working together over the longer term towards achieving common 

reporting and due diligence standards for financial institutions; 

Whereas, the Government of the United States of America acknowledges the 

need to coordinate the reporting obligations under FATCA with other U.S. tax 

reporting obligations of Netherlands financial institutions to avoid duplicative 

reporting; 

Whereas, an intergovernmental approach to FATCA implementation would 

address legal impediments and reduce burdens for Netherlands financial 

institutions; 

Whereas, the Governments of the Parties desire to conclude an agreement to 

improve international tax compliance and provide for the implementation of 

FATCA based on domestic reporting and reciprocal automatic exchange pursuant 

to the Conventions and subject to the confidentiality and other protections 

provided for therein, including the provisions limiting the use of the information 

exchanged under the Conventions; 

Now, therefore, the Parties have agreed as follows: 

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Article 1 

Definitions 

1. For purposes of this agreement and any annexes thereto ("Agreement"), 

the following terms shall have the meanings set forth below: 

a) The term "United States" means the United States of America, 

including the States thereof, but does not include the U.S. Territories. 

Any reference to a "State" of the United States includes the District of 

Columbia. 

b) The term "U.S. Territory" means American Samoa, the 

Commonwealth of the Northern Mariana Islands, Guam, the 

Commonwealth of Puerto Rico, or the U.S. Virgin Islands. 

c) The term "IRS" means the U.S. Internal Revenue Service. 

d) The term "the Netherlands" means the Kingdom of the Netherlands, 

including the islands of Bonaire, Sint Eustatius and Saba, and 

excluding Aruba, Cura9ao and Sint Maarten. 

e) The term "Partner Jurisdiction" means a jurisdiction that has in 

effect an agreement with the United States to facilitate the 

implementation of FATCA. The IRS shall publish a list identifying all 

Partner Jurisdictions. 

f) The term "Competent Authority" means: 

(1) in the case of the United States, the Secretary of the Treasury 

or his delegate; and 

(2) in the case of the Netherlands, the Minister of Finance or his 

authorized representative. 

g) The term "Financial Institution" means a Custodial Institution, a 

Depository Institution, an Investment Entity, or a Specified Insurance 

Company. 

h) The term "Custodial Institution" means any Entity that holds, as a 

substantial portion of its business, financial assets for the account of 

others. An entity holds financial assets for the account of others as a 

substantial portion of its business if the entity's gross income 

attributable to the holding of financial assets and related financial 

services equals or exceeds 20 percent of the entity's gross income 

during the shorter of: (i) the three-year period that ends on December 

31 (or the final day of a non-calendar year accounting period) prior to 

the year in which the determination is being made; or (ii) the period 

during which the entity has been in existence. 

i) The term "Depository Institution" means any Entity that accepts 

deposits in the ordinary course of a banking or similar business. 

j) The term "Investment Entity" means any Entity that conducts as a 

business (or is managed by an entity that conducts as a business) 

one or more of the following activities or operations for or on behalf of 

a customer: 

(1) trading in money market instruments (cheques, bills, certificates 

of deposit, derivatives, etc.); foreign exchange; exchange, 

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interest rate and index instruments; transferable securities; or 

commodity futures trading; 

(2) individual and collective portfolio management; or 

(3) otherwise investing, administering, or managing funds or money 

on behalf of other persons. 

This subparagraph 1 0) shall be interpreted in a manner consistent 

with similar language set forth in the definition of "financial institution" 

in the Financial Action Task Force Recommendations. 

k) The term "Specified Insurance Company" means any Entity that is 

an insurance company (or the holding company of an insurance 

company) that issues, or is obligated to make payments with respect 

to, a Cash Value Insurance Contract or an Annuity Contract. 

I) The term "Netherlands Financial Institution" means (i) any 

Financial Institution resident in the Netherlands, but excluding any 

branch of such Financial Institution that is located outside the 

Netherlands, and (ii) any branch of a Financial Institution not resident 

in the Netherlands, if such branch is located in the Netherlands. 

m) The term "Partner Jurisdiction Financial Institution" means (i) any 

Financial Institution resident in a Partner Jurisdiction, but excluding 

any branch of such Financial Institution that is located outside the 

Partner Jurisdiction, and (ii) any branch of a Financial Institution not 

resident in the Partner Jurisdiction, if such branch is located in the 

Partner Jurisdiction. 

n) The term "Reporting Financial Institution" means a Reporting 

Netherlands Financial Institution or a Reporting U.S. Financial 

Institution, as the context requires. 

o) The term "Reporting Netherlands Financial Institution" means 

any Netherlands Financial Institution that is not a Non-Reporting 

Netherlands Financial Institution. 

p) The term "Reporting U.S. Financial Institution" means (i) any 

Financial Institution that is resident in the United States, but excluding 

any branch of such Financial Institution that is located outside the 

United States, and (ii) any branch of a Financial Institution not 

resident in the United States, if such branch is located in the United 

States, provided that the Financial Institution or branch has control, 

receipt, or custody of income with respect to which information is 

required to be exchanged under subparagraph (2)(b) of Article 2 of 

this Agreement. 

q) The term "Non-Reporting Netherlands Financial Institution" 

means any Netherlands Financial Institution, or other Entity resident 

in the Netherlands that is described in Annex II as a Non-Reporting 

Netherlands Financial Institution or that otherwise qualifies as a 

deemed-compliant FFI or an exempt beneficial owner under relevant 

U.S. Treasury Regulations. 

r) The term "Nonparticipating Financial Institution" means a 

nonparticipating FFI, as that term is defined in relevant U.S. Treasury 

Regulations, but does not include a Netherlands Financial Institution 

or other Partner Jurisdiction Financial Institution other than a 

Financial Institution treated as a Nonparticipating Financial Institution 

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pursuant to subparagraph 2(b) of Article 5 of this Agreement or the 

corresponding provision in an agreement between the United States 

and a Partner Jurisdiction. 

s) The term "Financial Account" means an account maintained by a 

Financial Institution, and includes: 

(1) in the case of an Entity that is a Financial Institution solely 

because it is an Investment Entity, any equity or debt interest 

(other than interests that are regularly traded on an established 

securities market) in the Financial Institution; 

(2) in the case of a Financial Institution not described in 

subparagraph 1 (s)(1) of this Article, any equity or debt interest 

in the Financial Institution (other than interests that are regularly 

traded on an established securities market), if (i) the value 

of the debt or equity interest is determined, directly or indirectly, 

primarily by reference to assets that give rise to U.S. Source 

Withholdable Payments, and (ii) the class of interests was 

established with a purpose of avoiding reporting in accordance 

with this Agreement; and 

(3) any Cash Value Insurance Contract and any Annuity Contract 

issued or maintained by a Financial Institution, other than a 

noninvestment-linked, nontransferable immediate life annuity 

that is issued to an individual and monetizes a pension or 

disability benefit provided under an account, product, or 

arrangement that is excluded from the definition of Financial 

Account in Annex II. 

Notwithstanding the foregoing, the term "Financial Account" does not 

include any account, product, or arrangement that is excluded from 

the definition of Financial Account in Annex II. For purposes of this 

Agreement, interests are "regularly traded" if there is a meaningful 

volume of trading with respect to the interests on an ongoing basis, 

and an "established securities market" means an exchange that is 

officially recognized and supervised by a governmental authority in 

which the market is located and that has a meaningful annual value of 

shares traded on the exchange. For purposes of this subparagraph 

1 (s), an interest in a Financial Institution is not "regularly traded" and 

shall be treated as a Financial Account if the holder of the interest 

(other than a Financial Institution acting as an intermediary) is 

registered on the books of such Financial Institution. The preceding 

sentence will not apply to interests registered on the books of such 

Financial Institution prior to July 1, 2014, and with respect to interests 

registered on the books of such Financial Institution on or after July 1, 

2014, a Financial Institution is not required to apply the preceding 

sentence prior to January 1, 2016. 

t) The term "Depository Account" includes any commercial, checking, 

savings, time, or thrift account, or an account that is evidenced by a 

certificate of deposit, thrift certificate, investment certificate, certificate 

of indebtedness, or other similar instrument maintained by a Financial 

Institution in the ordinary course of a banking or similar business. A 

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Depository Account also includes an amount held by an insurance 

company pursuant to a guaranteed investment contract or similar 

agreement to pay or credit interest thereon. 

u) The term "Custodial Account" means an account (other than an 

Insurance Contract or Annuity Contract) for the benefit of another 

person that holds any financial instrument or contract held for 

investment (including, but not limited to, a share or stock in a 

corporation, a note, bond, debenture, or other evidence of 

indebtedness, a currency or commodity transaction, a credit default 

swap, a swap based upon a nonfinancial index, a notional principal 

contract, an Insurance Contract or Annuity Contract, and any option 

or other derivative instrument). 

v) The term "Equity Interest" means, in the case of a partnership that 

is a Financial Institution, either a capital or profits interest in the 

partnership. In the case of a trust that is a Financial Institution, an 

Equity Interest is considered to be held by any person treated as a 

settlor or beneficiary of all or a portion of the trust, or any other 

natural person exercising ultimate effective control over the trust. A 

Specified U.S. Person shall be treated as being a beneficiary of a 

foreign trust if such Specified U.S. Person has the right to receive 

directly or indirectly (for example, through a nominee) a mandatory 

distribution or may receive, directly or indirectly, a discretionary 

distribution from the trust. 

w) The term "Insurance Contract" means a contract (other than an 

Annuity Contract) under which the issuer agrees to pay an amount 

upon the occurrence of a specified contingency involving mortality, 

morbidity, accident, liability, or property risk. 

x) The term "Annuity Contract" means a contract under which the 

issuer agrees to make payments for a period of time determined in 

whole or in part by reference to the life expectancy of one or more 

individuals. The term also includes a contract that is considered to be 

an Annuity Contract in accordance with the law, regulation, or practice 

of the jurisdiction in which the contract was issued, and under which 

the issuer agrees to make payments for a term of years. 

y) The term "Cash Value Insurance Contract" means an Insurance 

Contract (other than an indemnity reinsurance contract between two 

insurance companies) that has a Cash Value greater than $50,000. 

z) The term "Cash Value" means the greater of (i) the amount that the 

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or 

policy loan), and (ii) the amount the policyholder can borrow under or 

with regard to the contract. Notwithstanding the foregoing, the term 

"Cash Value" does not include an amount payable under an 

Insurance Contract as: 

(1) a personal injury or sickness benefit or other benefit providing 

indemnification of an economic loss incurred upon the 

occurrence of the event insured against; 

(2) a refund to the policyholder of a previously paid premium under 

an Insurance Contract (other than under a life insurance 

contract) due to policy cancellation or termination, decrease in 

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risk exposure during the effective period of the Insurance 

Contract, or arising from a redetermination of the premium due 

to correction of posting or other similar error; or 

(3) a policyholder dividend based upon the underwriting experience 

of the contract or group involved. 

aa) The term "Reportable Account" means a U.S. Reportable Account 

or a Netherlands Reportable Account, as the context requires. 

bb) The term "Netherlands Reportable Account" means a Financial 

Account maintained by a Reporting U.S. Financial Institution if: (i) in 

the case of a Depository Account, the account is held by an individual 

resident in the Netherlands and more than $10 of interest is paid to 

such account in any given calendar year; or (ii) in the case of a 

Financial Account other than a Depository Account, the Account 

Holder is a resident of the Netherlands, including an Entity that 

certifies that it is resident in the Netherlands for tax purposes, with 

respect to which U.S. source income that is subject to reporting under 

chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal 

Revenue Code is paid or credited. 

cc) The term "U.S. Reportable Account" means a Financial Account 

maintained by a Reporting Netherlands Financial Institution and held 

by one or more Specified U.S. Persons or by a Non-U.S. Entity with 

one or more Controlling Persons that is a Specified U.S. Person. 

Notwithstanding the foregoing, an account shall not be treated as a 

U.S. Reportable Account if such account is not identified as a U.S. 

Reportable Account after application of the due diligence procedures 

in Annex I. 

dd) The term "Account Holder'' means the person listed or identified as 

the holder of a Financial Account by the Financial Institution that 

maintains the account. A person, other than a Financial Institution, 

holding a Financial Account for the benefit or account of another 

person as agent, custodian, nominee, signatory, investment advisor, 

or intermediary, is not treated as holding the account for purposes of 

this Agreement, and such other person is treated as holding the 

account. For purposes of the immediately preceding sentence, the 

term "Financial Institution" does not include a Financial Institution 

organized or incorporated in a U.S. Territory. In the case of a Cash 

Value Insurance Contract or an Annuity Contract, the Account Holder 

is any person entitled to access the Cash Value or change the 

beneficiary of the contract. If no person can access the Cash Value or 

change the beneficiary, the Account Holder is any person named as 

the owner in the contract and any person with a vested entitlement to 

payment under the terms of the contract. Upon the maturity of a Cash 

Value Insurance Contract or an Annuity Contract, each person 

entitled to receive a payment under the contract is treated as an 

Account Holder. 

ee) The term "U.S. Person" means a U.S. citizen or resident individual, a 

partnership or corporation organized in the United States or under the 

laws of the United States or any State thereof, a trust if (i) a court 

within the United States would have authority under applicable law to 

render orders or judgments concerning substantially all issues 

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regarding administration of the trust, and (ii) one or more U.S. 

persons have the authority to control all substantial decisions of the 

trust, or an estate of a decedent that is a citizen or resident of the 

United States. This subparagraph 1 (ee) shall be interpreted in 

accordance with the U.S. Internal Revenue Code. 

ff) The term "Specified U.S. Person" means a U.S. Person, other than: 

(i) a corporation the stock of which is regularly traded on one or more 

established securities markets; (ii) any corporation that is a member 

of the same expanded affiliated group, as defined in section 

1471 (e)(2) of the U.S. Internal Revenue Code, as a corporation 

described in clause (i); (iii) the United States or any wholly owned 

agency or instrumentality thereof; (iv) any State of the United States, 

any U.S. Territory, any political subdivision of any of the foregoing, or 

any wholly owned agency or instrumentality of any one or more of the 

foregoing; (v) any organization exempt from taxation under section 

501 (a) of the U.S. Internal Revenue Code or an individual retirement 

plan as defined in section 7701 (a)(37) of the U.S. Internal Revenue 

Code; (vi) any bank as defined in section 581 of the U.S. Internal 

Revenue Code; (vii) any real estate investment trust as defined in 

section 856 of the U.S. Internal Revenue Code; (viii) any regulated 

investment company as defined in section 851 of the U.S. Internal 

Revenue Code or any entity registered with the U.S. Securities and 

Exchange Commission under the Investment Company Act of 1940 

(15 U.S.C. 80a-64); (ix) any common trust fund as defined in section 

584(a) of the U.S. Internal Revenue Code; (x) any trust that is exempt 

from tax under section 664(c) of the U.S. Internal Revenue Code or 

that is described in section 4947(a)(1) of the U.S. Internal Revenue 

Code; (xi) a dealer in securities, commodities, or derivative financial 

instruments (including notional principal contracts, futures, forwards, 

and options) that is registered as such under the laws of the United 

States or any State; (xii) a broker as defined in section 6045(c) of the 

U.S. Internal Revenue Code, or (xiii) any tax-exempt trust under a 

plan that is described in section 403(b) or section 457(g) of the U.S. 

Internal Revenue Code. 

gg) The term "Entity" means a legal person or a legal arrangement such 

as a trust. 

hh) The term "Non-U.S. Entity" means an Entity that is not a U.S. 

Person. 

ii) The term "U.S. Source Withholdable Payment" means any 

payment of interest (including any original issue discount), dividends, 

rents, salaries, wages, premiums, annuities, compensations, 

remunerations, emoluments, and other fixed or determinable annual 

or periodical gains, profits, and income, if such payment is from 

sources within the United States. Notwithstanding the foregoing, a 

U.S. Source Withholdable Payment does not include any payment 

that is not treated as a withholdable payment in relevant U.S. 

Treasury Regulations. 

jj) An Entity is a "Related Entity" of another Entity if either Entity 

controls the other Entity, or the two Entities are under common 

control. For this purpose control includes direct or indirect ownership 

of more than 50 percent of the vote or value in an Entity. 

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Notwithstanding the foregoing, the Netherlands may treat an Entity as 

not a Related Entity of another Entity if the two Entities are not 

members of the same expanded affiliated group as defined in section 

1471 (e)(2) of the U.S. Internal Revenue Code. 

kk) The term "U.S. TIN" means a U.S. federal taxpayer identifying 

number. 

II) The term "Netherlands TIN" means a taxpayer identifying number 

issued by the Netherlands. 

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 manner consistent with the Financial Action Task 

Force Recommendations. 

2. Any term not otherwise defined in this Agreement shall, unless the context 

otherwise requires or the Competent Authorities 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. 

Article 2 

Obligations to Obtain and Exchange Information 

with Respect to Reportable Accounts 

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 either or both of the 

Conventions, as appropriate. 

2. The information to be obtained and exchanged is: 

a) In the case of the Netherlands with respect to each U.S. Reportable 

Account of each Reporting Netherlands Financial Institution: 

(1) the name, address, and U.S. TIN of each Specified U.S. Person 

that is an Account Holder of such account and, in the case of a 

Non-U.S. Entity that, after application of the due diligence 

procedures set forth in Annex I, is identified as having one or 

more Controlling Persons that is a Specified U.S. Person, the 

name, address, and U.S. TIN (if any) of such entity and each 

such Specified U.S. Person; 

(2) the account number (or functional equivalent in the absence of 

an account number); 

(3) the name and identifying number of the Reporting Netherlands 

Financial Institution; 

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(4) the account balance or value (including, in the case of a Cash 

Value Insurance Contract or Annuity Contract, 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 Reporting Netherlands Financial 

Institution 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 Reporting Netherlands Financial 

Institution 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 United States, with respect to each Netherlands 

Reportable Account of each Reporting U.S. Financial Institution: 

(1) the name, address, and Netherlands TIN of any person that is a 

resident of the Netherlands 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. 

Financial Institution; 

(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 

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3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal 

Revenue Code. 

Article 3 

Time and Manner 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 the Netherlands, and the amount and characterization of 

payments made with respect to a Netherlands 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 the Netherlands: 

(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 United States, 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 Reporting Financial Institution as of June 

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 Netherlands TIN or the U.S. TIN, as applicable, of any relevant person if 

such taxpayer identifying number is not in the records of the Reporting 

Financial Institution. In such a case, the Parties shall obtain and include in 

the exchanged information the date of birth of the relevant person, if the 

Reporting Financial Institution has such date of birth in its records. 

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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 the Netherlands and the United States shall 

enter into an arrangement under the mutual agreement procedures 

provided for in Article 29 of the Double Tax Convention and Article 24 of the 

Mutual Assistance 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. 

d) for cases where both Conventions may be applicable, indicating 

under which one or under both of the Conventions, the exchanges 

are being conducted. 

7. All information exchanged under this Agreement shall be subject to the 

confidentiality and other protections provided for in the Conventions, 

including the provisions limiting the use of the information exchanged. 

Article 4 

Application of FATCA to Netherlands Financial Institutions 

1. Treatment of Reporting Netherlands Financial Institutions. Each 

Reporting Netherlands Financial Institution shall be treated as complying 

with, and not subject to withholding under, section 1471 of the U.S. Internal 

Revenue Code if the Netherlands complies with its obligations under 

Articles 2 and 3 of this Agreement with respect to such Reporting 

Netherlands Financial Institution, and the Reporting Netherlands Financial 

Institution: 

a) identifies U.S. Reportable Accounts and reports annually to the 

Netherlands Competent Authority the information required to be 

reported in subparagraph 2(a) of Article 2 of this Agreement in the 

time and manner described in Article 3 of this Agreement; 

b) for each of 2015 and 2016, reports annually to the Netherlands 

Competent Authority the name of each Nonparticipating Financial 

Institution 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 Reporting Netherlands Financial Institution 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 

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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 Nonparticipating Financial Institution; 

and 

e) in the case of a Reporting Netherlands Financial Institution 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 Nonparticipating Financial Institution, 

the Reporting Netherlands Financial Institution 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 Reporting Netherlands Financial Institution 

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 Reporting Netherlands Financial Institution is 

treated by the IRS as a Nonparticipating Financial Institution pursuant to 

subparagraph 2(b) of Article 5 of this Agreement. 

2. Suspension of Rules Relating to Recalcitrant Accounts. The United 

States shall not require a Reporting Netherlands Financial Institution 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. 

3. Specific Treatment of Netherlands Retirement Plans. The United States 

shall treat as deemed-compliant FFis or exempt beneficial owners, as 

appropriate, for purposes of sections 1471 and 1472 of the U.S. Internal 

Revenue Code Netherlands retirement plans described in Annex II. For this 

purpose, a Netherlands retirement plan includes an Entity established or 

located in, and regulated in the Netherlands, 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 the 

Netherlands and regulated with respect to contributions, distributions, 

reporting, sponsorship, and taxation. 

4. Identification and Treatment of Other Deemed-Compliant Ffls and 

Exempt Beneficial Owners. The United States shall treat each NonReporting Netherlands Financial Institution 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. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a Netherlands Financial 

- 13-
Institution, 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 deemed-compliant 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 nonparticipating FFI solely due to the expiration of the transitional rule for 

limited FFis and limited branches under relevant U.S. Treasury 

Regulations, such Netherlands Financial Institution shall continue to be in 

compliance with the terms of this Agreement and shall continue to be 

treated as a deemed-compliant FFI or exempt beneficial owner, as 

appropriate, for purposes of section 1471 of the U.S. Internal Revenue 

Code, provided that: 

a) the Netherlands Financial Institution treats each such Related Entity 

or branch as a separate Nonparticipating Financial Institution 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 Nonparticipating Financial Institution; 

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 Netherlands Financial 

Institution or any other Related Entity to circumvent the obligations 

under this Agreement or under section 1471 of the U.S. Internal 

Revenue Code, as appropriate. 

6. Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 

of this Agreement: 

a) the Netherlands shall 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. 

Treasury Regulations; 

b) the Netherlands shall 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. Treasury 

Regulations; 

c) the United States shall 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 the Netherlands is required to 

obtain and exchange information; and 

d) the United States shall not be obligated to begin exchanging 

- 14-
information prior to the date by which the Netherlands is required to 

begin exchanging information. 

7. Coordination of Definitions with U.S. Treasurv Regulations. 

Notwithstanding Article 1 of this Agreement and the definitions provided in 

the Annexes to this Agreement, in implementing this Agreement the 

Netherlands may use, and may permit Netherlands 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. 

Article 5 

Collaboration on Compliance and Enforcement 

1. Minor 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. 

2. Significant Non-Compliance. 

a) A Competent Authority shall notify the Competent Authority of the 

other Party when the first-mentioned Competent Authority has 

determined that there is significant non-compliance with the 

obligations under this Agreement with respect to a Reporting 

Financial Institution in the other jurisdiction. The Competent Authority 

of such other Party shall apply its domestic law (including applicable 

penalties) to address the significant non-compliance described in the 

notice. 

b) If, in the case of a Reporting Netherlands Financial Institution, such 

enforcement actions do not resolve the non-compliance within a 

period of 18 months after notification of significant non-compliance is 

first provided, the United States shall treat the Reporting Netherlands 

Financial Institution as a Nonparticipating Financial Institution 

pursuant to this subparagraph 2(b). 

3. Reliance on Third Partv Service 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. 

-15-
Article 6 

Mutual Commitment to Continue to Enhance the Effectiveness 

of Information Exchange and Transparency 

1. Reciprocity. The Government of the United States acknowledges the 

need to achieve equivalent levels of reciprocal automatic information 

exchange with the Netherlands. The Government of the United States is 

committed to further improve transparency and enhance the exchange 

relationship with the Netherlands 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. 

3. Development of Common Reporting and Exchange Model. The Parties 

are committed to working with Partner Jurisdictions, the Organisation for 

Economic Co-operation and Development, and the European Union, on 

adapting the terms of this Agreement to a common model for automatic 

exchange of information, including the development of reporting and due 

diligence standards for financial institutions. 

4. Documentation of Accounts Maintained as of June 30, 2014. With 

respect to Reportable Accounts maintained by a Reporting Financial 

Institution as of June 30, 2014: 

a) The United States 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 

Netherlands Tl N of each Account Holder of a Netherlands Reportable 

Account as required pursuant to subparagraph 2(b)(1) of Article 2 of 

this Agreement; and 

b) The Netherlands commits to establish, by January 1, 2017, for 

reporting with respect to 2017 and subsequent years, rules requiring 

Reporting Netherlands Financial Institutions to obtain the U.S. TIN of 

each Specified U.S. Person as required pursuant to subparagraph 

2(a)(1) of Article 2 of this Agreement. 

Article 7 

Consistency in the Application of FA TCA to Partner Jurisdictions 

1. The Netherlands shall be granted the benefit of any more favorable terms 

under Article 4 or Annex I of this Agreement relating to the application of 

FATCA to Netherlands 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 the 

- 16-
Netherlands 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 United States shall notify the Netherlands 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 signing of the agreement incorporating the more favorable 

terms, unless the Netherlands declines in writing the application thereof. 

Article 8 

Consultations and Amendments 

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 1 0 of this Agreement. 

Article 9 

Annexes 

The Annexes form an integral part of this Agreement. 

- 17-
Article 10 

Term of Agreement 

1. This Agreement shall enter into force on the date of the Netherlands' written 

notification to the United States that the Netherlands has completed its 

necessary internal procedures for entry into force of this Agreement and 

shall continue in force until terminated. 

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 December 31, 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. 

ti, I 

DONE at The HQdl.\e:, , in duplicate, in English, this fa day of DeceJ'II.bec, 20 0. 

FOR THE FOR THE 

UNITED STATES OF AMERICA KINGDOM OF THE NETHERLANDS: 

- 18-
ANNEX I 

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON 

U.S. REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General. 

A. The Netherlands shall require that Reporting Netherlands Financial 

Institutions apply the due diligence procedures contained in this Annex I 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 June 

30, 2014, under this Annex I, the relevant balance or value shall be 

determined as of that day or the last day of the reporting period 

ending immediately before June 30, 2014, and where a balance or 

value threshold is to be determined as of the last day of a calendar 

year under this Annex I, 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 Annex I, 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 Annex I. 

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 Annex 

I, the Netherlands may permit Reporting Netherlands 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 Nonparticipating Financial Institution. The Netherlands may 

permit Reporting Netherlands Financial Institutions to make such election 

separately for each section of this Annex I either with respect to all relevant 

Financial Accounts or, separately, with respect to any clearly identified 

group of such accounts (such as by line of business or the location of 

where the account is maintained). 

- 19-
II. Preexisting Individual Accounts. 

The following rules and procedures apply for purposes of identifying U.S. 

Reportable Accounts among Preexisting Accounts held by individuals 

("Preexisting Individual Accounts"). 

A. Accounts Not Required to Be Reviewed. Identified, or Reported. 

Unless the Reporting Netherlands Financial Institution elects otherwise, 

either with respect to all Preexisting Individual Accounts or, separately, with 

respect to any clearly identified group of such accounts, where the 

implementing rules in the Netherlands provide for such an election, the 

following Preexisting Individual Accounts are not required to be reviewed, 

identified, or reported as U.S. Reportable Accounts: 

1. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account with a balance or value that does not exceed $50,000 as of 

June 30, 2014. 

2. Subject to subparagraph E(2) of this section, a Preexisting Individual 

Account that is a Cash Value Insurance Contract or an Annuity 

Contract with a balance or value of $250,000 or less as of June 30, 

2014. 

3. A Preexisting Individual Account that is a Cash Value Insurance 

Contract or an Annuity Contract, provided the law or regulations of the 

Netherlands or the United States effectively prevent the sale of such 

a Cash Value Insurance Contract or an Annuity Contract to U.S. 

residents (e.g., if the relevant Financial Institution does not have the 

required registration under U.S. law, and the law of the Netherlands 

requires reporting or withholding with respect to insurance products 

held by residents of the Netherlands. 

4. A Depository Account with a balance of $50,000 or less. 

B. Review Procedures for Preexisting Individual Accounts With a 

Balance or Value as of June 30, 2014, that Exceeds $50,000 ($250,000 

for a Cash Value Insurance Contract or Annuitv Contract), But Does 

Not Exceed $1,000,000 ("Lower Value Accounts"). 

1. Electronic Record Search. The Reporting Netherlands Financial 

Institution must review electronically searchable data maintained by 

the Reporting Netherlands Financial Institution for any of the following 

U.S. indicia: 

a) Identification of the Account Holder as a U.S. citizen or resident; 

b) Unambiguous indication of a U.S. place of birth; 

c) Current U.S. mailing or residence address (including a U.S. 

post office box); 

d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account maintained 

in the United States; 

f) Currently effective power of attorney or signatory authority 

-20-
granted to a person with a U.S. address; or 

g) An "in-care-of' or "hold mail" address that is the sole address 

the Reporting Netherlands Financial Institution has on file for 

the Account Holder. In the case of a Preexisting Individual 

Account that is a Lower Value Account, an "in-care-of' address 

outside the United States or "hold mail" address shall not be 

treated as U.S. indicia. 

2. If none of the U.S. indicia listed in subparagraph 8(1) of this section 

are discovered in the electronic search, then no further action is 

required until there is a change in circumstances that results in one or 

more U.S. indicia being associated with the account, or the account 

becomes a High Value Account described in paragraph D of this 

section. 

3. If any of the U.S. indicia listed in subparagraph 8(1) of this section 

are discovered in the electronic search, or if there is a change in 

circumstances that results in one or more U.S. indicia being 

associated with the account, then the Reporting Netherlands 

Financial Institution must treat the account as a U.S. Reportable 

Account unless it elects to apply subparagraph 8(4) of this section 

and one of the exceptions in such subparagraph applies with respect 

to that account. 

4. Notwithstanding a finding of U.S. indicia under subparagraph 8(1) of 

this section, a Reporting Netherlands Financial Institution is not 

required to treat an account as a U.S. Reportable Account if: 

a) Where the Account Holder information unambiguously indicates 

a U.S. place of birth, the Reporting Netherlands Financial 

Institution obtains, or has previously reviewed and maintains a 

record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); 

(2) A non-U.S. passport or other government-issued 

identification evidencing the Account Holder's citizenship 

or nationality in a country other than the United States; 

and 

(3) A copy of the Account Holder's Certificate of Loss of 

Nationality of the United States or a reasonable 

explanation of: 

(a) The reason the Account Holder does not have such 

a certificate despite relinquishing U.S. citizenship; 

or 

(b) The reason the Account Holder did not obtain U.S. 

citizenship at birth. 

b) Where the Account Holder information contains a current U.S. 

- 21 -
mailing or residence address, or one or more U.S. 

telephone numbers that are the only telephone numbers 

associated with the account, the Reporting Netherlands 

Financial Institution obtains or has previously reviewed and 

maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account 

Holder's non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in 

the United States, the Reporting Netherlands Financial 

Institution obtains, or has previously reviewed and maintains a 

record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account 

Holder's non-U.S. status. 

d) Where the Account Holder information contains a currently 

effective power of attorney or signatory authority granted 

to a person with a U.S. address, has an 11in-care-of" 

address or 11hold mail" address that is the sole address 

identified for the Account Holder, or has one or more U.S. 

telephone numbers (if a non-U.S. telephone number is also 

associated with the account), the Reporting Netherlands 

Financial Institution obtains, or has previously reviewed and 

maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); or 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account 

Holder's non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts. 

1. Review of Preexisting Individual Accounts that are Lower Value 

Accounts for U.S. indicia must be completed by June 30, 2016. 

-22-
2. If there is a change of circumstances with respect to a Preexisting 

Individual Account that is a Lower Value Account that results in one or 

more U.S. indicia described in subparagraph 8(1) of this section 

being associated with the account, then the Reporting Netherlands 

Financial Institution must treat the account as a U.S. Reportable 

Account unless subparagraph 8(4) of this section applies. 

3. Except for Depository Accounts described in subparagraph A(4) of 

this section, any Preexisting Individual Account that has been 

identified as a U.S. Reportable Account under this section shall be 

treated as a U.S. Reportable Account in all subsequent years, unless 

the Account Holder ceases to be a Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts 

With a Balance or Value That Exceeds $1,000.000 as of June 30, 2014, 

or December 31 of 2015 or Any Subsequent Year ("High Value 

Accounts"). 

1. Electronic Record Search. The Reporting Netherlands Financial 

Institution must review electronically searchable data maintained by 

the Reporting Netherlands Financial Institution for any of the U.S. 

indicia described in subparagraph 8(1) of this section. 

2. Paper Record Search. If the Reporting Netherlands Financial 

Institution's electronically searchable databases include fields for, and 

capture all of the information described in, subparagraph D(3) of this 

section, then no further paper record search is required. If the 

electronic databases do not capture all of this information, then with 

respect to a High Value Account, the Reporting Netherlands Financial 

Institution must also review the current customer master file and, to 

the extent not contained in the current customer master file, the 

following documents associated with the account and obtained by the 

Reporting Netherlands Financial Institution within the last five years 

for any of the U.S. indicia described in subparagraph 8(1) of this 

section: 

a) The most recent documentary evidence collected with respect 

to the account; 

b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the Reporting 

Netherlands Financial Institution pursuant to AMLIKYC 

Procedures or for other regulatory purposes; 

d) Any power of attorney or signature authority forms currently in 

effect; and 

e) Any standing instructions to transfer funds currently in effect. 

3. Exception Where Databases Contain Sufficient Information. A 

Reporting Netherlands Financial Institution is not required to perform 

the paper record search described in subparagraph D(2) of this 

section if the Reporting Netherlands Financial Institution's 

-23-
electronically searchable information includes the following: 

a) The Account Holder's nationality or residence status; 

b) The Account Holder's residence address and mailing address 

currently on file with the Reporting Netherlands Financial 

Institution; 

c) The Account Holder's telephone number(s) currently on file, if 

any, with the Reporting Netherlands Financial Institution; 

d) Whether there are standing instructions to transfer funds in the 

account to another account (including an account at another 

branch of the Reporting Netherlands Financial Institution or 

another Financial Institution); 

e) Whether there is a current "in-care-of' address or "hold mail" 

address for the Account Holder; and 

f) Whether there is any power of attorney or signatory authority for 

the account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition 

to the electronic and paper record searches described above, the 

Reporting Netherlands Financial Institution must treat as a U.S. 

Reportable Account any High Value Account assigned to a 

relationship manager (including any Financial Accounts aggregated 

with such High Value Account) if the relationship manager has actual 

knowledge that the Account Holder is a Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) If none of the U.S. indicia listed in subparagraph 8(1) of this 

section are discovered in the enhanced review of High Value 

Accounts described above, and the account is not identified as 

held by a Specified U.S. Person in subparagraph 0(4) of this 

section, then no further action is required until there is a change 

in circumstances that results in one or more U.S. indicia being 

associated with the account. 

b) If any of the U.S. indicia listed in subparagraph 8(1) of this 

section are discovered in the enhanced review of High Value 

Accounts described above, or if there is a subsequent change 

in circumstances that results in one or more U.S. indicia being 

associated with the account, then the Reporting Netherlands 

Financial Institution must treat the account as a U.S. Reportable 

Account unless it elects to apply subparagraph 8(4) of this 

section and one of the exceptions in such subparagraph applies 

with respect to that account. 

c) Except for Depository Accounts described in subparagraph A(4) 

of this section, any Preexisting Individual Account that has been 

identified as a U.S. Reportable Account under this section shall 

be treated as a U.S. Reportable Account in all subsequent 

years, unless the Account Holder ceases to be a Specified U.S. 

Person. 

-24-
E. Additional Procedures Applicable to High Value Accounts. 

1. If a Preexisting Individual Account is a High Value Account as of June 

30, 2014, the Reporting Netherlands Financial Institution must 

complete the enhanced review procedures described in paragraph D 

of this section with respect to such account by June 30, 2015. If 

based on this review such account is identified as a U.S. Reportable 

Account on or before December 31, 2014, the Reporting Netherlands 

Financial Institution must report the required information about such 

account with respect to 2014 in the first report on the account and on 

an annual basis thereafter. In the case of an account identified as a 

U.S. Reportable Account after December 31, 2014, and on or before 

June 30, 2015, the Reporting Netherlands Financial Institution is not 

required to report information about such account with respect to 

2014, but must report information about the account on an annual 

basis thereafter. 

2. If a Preexisting Individual Account is not a High Value Account as of 

June 30, 2014, but becomes a High Value Account as of the last day 

of 2015 or any subsequent calendar year, the Reporting Netherlands 

Financial Institution must complete the enhanced review procedures 

described in paragraph D of this section with respect to such account 

within six months after the last day of the calendar year in which the 

account becomes a High Value Account. If based on this review such 

account is identified as a U.S. Reportable Account, the Reporting 

Netherlands Financial Institution must report the required information 

about such account with respect to the year in which it is identified as 

a U.S. Reportable Account and subsequent years on an annual basis, 

unless the Account Holder ceases to be a Specified U.S. Person. 

3. Once a Reporting Netherlands Financial Institution applies the 

enhanced review procedures described in paragraph D of this section 

to a High Value Account, the Reporting Netherlands Financial 

Institution is not required to re-apply such procedures, other than the 

relationship manager inquiry described in subparagraph D(4) of this 

section, to the same High Value Account in any subsequent year. 

4. If there is a change of circumstances with respect to a High Value 

Account that results in one or more U.S. indicia described in 

subparagraph 8(1) of this section being associated with the account, 

then the Reporting Netherlands Financial Institution must treat the 

account as a U.S. Reportable Account unless it elects to apply 

subparagraph 8(4) of this section and one of the exceptions in such 

subparagraph applies with respect to that account. 

5. A Reporting Netherlands Financial Institution must implement 

procedures to ensure that a relationship manager identifies any 

change in circumstances of an account. For example, if a relationship 

manager is notified that the Account Holder has a new mailing 

address in the United States, the Reporting Netherlands Financial 

Institution is required to treat the new address as a change in 

-25-
circumstances and, if it elects to apply subparagraph 8(4) of this 

section, is required to obtain the appropriate documentation from the 

Account Holder. 

F. Preexisting Individual Accounts That Have Been Documented for 

Certain Other Purposes. A Reporting Netherlands Financial Institution that 

has previously obtained documentation from an Account Holder to establish 

the Account Holder's status as neither a U.S. citizen nor a U.S. resident in 

order to meet its obligations under a qualified intermediary, withholding 

foreign partnership, or withholding foreign trust agreement with the IRS, or 

to fulfill its obligations under chapter 61 of Title 26 of the United States 

Code, is not required to perform the procedures described in subparagraph 

8(1) of this section with respect to Lower Value Accounts or subparagraphs 

0(1) through 0(3) of this section with respect to High Value Accounts. 

III. New Individual Accounts. 

The following rules and procedures apply for purposes of identifying U.S. 

Reportable Accounts among Financial Accounts held by individuals and opened 

on or after July 1, 2014 ("New Individual Accounts"). 

A Accounts Not Required to Be Reviewed, Identified. or Reported. 

Unless the Reporting Netherlands Financial Institution elects otherwise, 

either with respect to all New Individual Accounts or, separately, with 

respect to any clearly identified group of such accounts, where the 

implementing rules in the Netherlands provide for such an election, the 

following New Individual Accounts are not required to be reviewed, 

identified, or reported as U.S. Reportable Accounts: 

1. A Depository Account unless the account balance exceeds $50,000 at 

the end of any calendar year or other appropriate reporting period. 

2. A Cash Value Insurance Contract unless the Cash Value exceeds 

$50,000 at the end of any calendar year or other appropriate 

reporting period. 

B. Other New Individual Accounts. With respect to New Individual Accounts 

not described in paragraph A of this section, upon account opening (or 

within 90 days after the end of the calendar year in which the account 

ceases to be described in paragraph A of this section), the Reporting 

Netherlands Financial Institution must obtain a self-certification, which may 

be part of the account opening documentation, that allows the Reporting 

Netherlands Financial Institution to determine whether the Account Holder 

is resident in the United States for tax purposes (for this purpose, a U.S. 

citizen is considered to be resident in the United States for tax purposes, 

even if the Account Holder is also a tax resident of another jurisdiction) and 

confirm the reasonableness of such self-certification based on the 

information obtained by the Reporting Netherlands Financial Institution in 

connection with the opening of the account, including any documentation 

collected pursuant to AMUKYC Procedures. 

1. If the self-certification establishes that the Account Holder is resident 

in the United States for tax purposes, the Reporting Netherlands 

-26-
Financial Institution must treat the account as a U.S. Reportable 

Account and obtain a self-certification that includes the Account 

Holder's U.S. TIN (which may be an IRS Form W-9 or other similar 

agreed form). 

2. If there is a change of circumstances with respect to a New Individual 

Account that causes the Reporting Netherlands Financial Institution to 

know, or have reason to know, that the original self-certification is 

incorrect or unreliable, the Reporting Netherlands Financial Institution 

cannot rely on the original self-certification and must obtain a valid 

self-certification that establishes whether the Account Holder is a U.S. 

citizen or resident for U.S. tax purposes. If the Reporting Netherlands 

Financial Institution is unable to obtain a valid self-certification, the 

Reporting Netherlands Financial Institution must treat the account as 

a U.S. Reportable Account. 

IV. Preexisting Entity Accounts. 

The following rules and procedures apply for purposes of identifying U.S. 

Reportable Accounts and accounts held by Nonparticipating Financial Institutions 

among Preexisting Accounts held by Entities ("Preexisting Entity Accounts"). 

A. Entity Accounts Not Required to Be Reviewed. Identified or Reported. 

Unless the Reporting Netherlands Financial Institution elects otherwise, 

either with respect to all Preexisting Entity Accounts or, separately, with 

respect to any clearly identified group of such accounts, where the 

implementing rules in Netherlands provide for such an election, a 

Preexisting Entity Account with an account balance or value that does not 

exceed $250,000 as of June 30, 2014, is not required to be reviewed, 

identified, or reported as a U.S. Reportable Account until the account 

balance or value exceeds $1,000,000. 

B. Entity Accounts Subject to Review. A Preexisting Entity Account that has 

an account balance or value that exceeds $250,000 as of June 30, 2014, 

and a Preexisting Entity Account that does not exceed $250,000 as of June 

30, 2014, but the account balance or value of which exceeds $1,000,000 as 

of the last day of 2015 or any subsequent year, must be reviewed in 

accordance with the procedures set forth in paragraph D of this section. 

C. Entity Accounts With Respect to Which Reporting Is Required. With 

respect to Preexisting Entity Accounts described in paragraph B of this 

section, only accounts that are held by one or more Entities that are 

Specified U.S. Persons, or by Passive NFFEs with one or more Controlling 

Persons who are U.S. citizens or residents, shall be treated as U.S. 

Reportable Accounts. In addition, accounts held by Nonparticipating 

Financial Institutions shall be treated as accounts for which aggregate 

payments as described in subparagraph 1 (b) of Article 4 of the Agreement 

are reported to the Netherlands Competent Authority. 

D. Review Procedures for Identifying Entity Accounts With Respect to 

Which Reporting Is Required. For Preexisting Entity Accounts described 

in paragraph B of this section, the Reporting Netherlands Financial 

-27-
Institution must apply the following review procedures to determine whether 

the account is held by one or more Specified U.S. Persons, by Passive 

NFFEs with one or more Controlling Persons who are U.S. citizens or 

residents, or by Nonparticipating Financial Institutions: 

1. Determine Whether the Entity Is a Specified U.S. Person. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant 

to AMUKYC Procedures) to determine whether the information 

indicates that the Account Holder is a U.S. Person. For this 

purpose, information indicating that the Account Holder is a U.S. 

Person includes a U.S. place of incorporation or organization, or 

a U.S. address. 

b) If the information indicates that the Account Holder is a U.S. 

Person, the Reporting Netherlands Financial Institution must 

treat the account as a U.S. Reportable Account unless it obtains 

a self-certification from the Account Holder (which may be on an 

IRS Form W-8 or W-9, or a similar agreed form), or reasonably 

determines based on information in its possession or that is 

publicly available, that the Account Holder is not a Specified 

U.S. Person. 

2. Determine Whether a Non-U.S. Entity Is a Financial Institution. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant 

to AMUKYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

b) If the information indicates that the Account Holder is a 

Financial Institution, or the Reporting Netherlands Financial 

Institution verifies the Account Holder's Global Intermediary 

Identification Number on the published IRS FFI list, then the 

account is not a U.S. Reportable Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Payments to Which Are Subject to 

Aggregate Reporting Under Subparagraph 1(b) of Article 4 of the 

Agreement. 

a) Subject to subparagraph D(3)(b) of this section, a Reporting 

Netherlands Financial Institution may determine that the 

Account Holder is a Netherlands Financial Institution or other 

Partner Jurisdiction Financial Institution if the Reporting 

Netherlands Financial Institution reasonably determines that the 

Account Holder has such status on the basis of the Account 

Holder's Global Intermediary Identification Number on the 

published IRS FFI list or other information that is publicly 

available or in the possession of the Reporting Netherlands 

Financial Institution, as applicable. In such a case, no further 

-28-
review, identification, or reporting is required with respect to the 

account. 

b) If the Account Holder is a Netherlands Financial Institution or 

other Partner Jurisdiction Financial Institution treated by the IRS 

as a Nonparticipating Financial Institution, then the account is 

not a U.S. Reportable Account, but payments to the Account 

Holder must be reported as contemplated in subparagraph 1 (b) 

of Article 4 of the Agreement. 

c) If the Account Holder is not a Netherlands Financial Institution 

or other Partner Jurisdiction Financial Institution, then the 

Reporting Netherlands Financial Institution must treat the 

Account Holder as a Nonparticipating Financial Institution 

payments to which are reportable under subparagraph 1 (b) of 

Article 4 of the Agreement, unless the Reporting Netherlands 

Financial Institution: 

(1) Obtains a self-certification (which may be on an IRS Form 

W-8 or similar agreed form) from the Account Holder that 

it is a certified deemed-compliant FFI, or an exempt 

beneficial owner, as those terms are defined in relevant 

U.S. Treasury Regulations; or 

(2) In the case of a participating FFI or registered deemedcompliant FFI, verifies the Account Holder's Global 

Intermediary Identification Number on the published IRS 

FFIIist. 

4. Determine Whether an Account Held by an NFFE Is a U.S. 

Reportable Account. With respect to an Account Holder of a 

Preexisting Entity Account that is not identified as either a U.S. 

Person or a Financial Institution, the Reporting Netherlands Financial 

Institution must identify (i) whether the Account Holder has Controlling 

Persons, (ii) whether the Account Holder is a Passive NFFE, and (iii) 

whether any of the Controlling Persons of the Account Holder is a 

U.S. citizen or resident. In making these determinations the Reporting 

Netherlands Financial Institution must follow the guidance in 

subparagraphs D(4)(a) through D(4)(d) of this section in the order 

most appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting Netherlands Financial Institution 

may rely on information collected and maintained pursuant to 

AMUKYC Procedures. 

b) For purposes of determining whether the Account Holder is a 

Passive NFFE, the Reporting Netherlands Financial Institution 

must obtain a self-certification (which may be on an IRS Form 

W-8 or W-9, or on a similar agreed form) from the Account 

Holder to establish its status, unless it has information in its 

possession or that is publicly available, based on which it can 

reasonably determine that the Account Holder is an Active 

NFFE. 

c) For purposes of determining whether a Controlling Person of a 

-29-
Passive NFFE is a U.S. citizen or resident for tax purposes, a 

Reporting Netherlands Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AMLIKYC Procedures in the case of a Preexisting Entity 

Account held by one or more NFFEs with an account 

balance or value that does not exceed $1,000,000; or 

(2) A self-certification (which may be on an IRS Form W-8 or 

W-9, or on a similar agreed form) from the Account Holder 

or such Controlling Person in the case of a Preexisting 

Entity Account held by one or more NFFEs with an 

account balance or value that exceeds $1,000,000. 

d) If any Controlling Person of a Passive NFFE is a U.S. citizen or 

resident, the account shall be treated as a U.S. Reportable 

Account. 

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entitv Accounts. 

1. Review of Preexisting Entity Accounts with an account balance or 

value that exceeds $250,000 as of June 30, 2014, must be completed 

by June 30, 2016. 

2. Review of Preexisting Entity Accounts with an account balance or 

value that does not exceed $250,000 as of June 30, 2014, but 

exceeds $1,000,000 as of December 31 of 2015 or any subsequent 

year, must be completed within six months after the last day of the 

calendar year in which the account balance or value exceeds 

$1,000,000. 

3. If there is a change of circumstances with respect to a Preexisting 

Entity Account that causes the Reporting Netherlands Financial 

Institution to know, or have reason to know, that the self-certification 

or other documentation associated with an account is incorrect or 

unreliable, the Reporting Netherlands Financial Institution must 

redetermine the status of the account in accordance with the 

procedures set forth in paragraph D of this section. 

V. New Entitv Accounts. 

The following rules and procedures apply for purposes of identifying U.S. 

Reportable Accounts and accounts held by Nonparticipating Financial Institutions 

among Financial Accounts held by Entities and opened on or after July 1, 2014 

("New Entity Accounts"). 

A. Entity Accounts Not Required to Be Reviewed. Identified or Reported. 

Unless the Reporting Netherlands Financial Institution elects otherwise, 

either with respect to all New Entity Accounts or, separately, with respect to 

any clearly identified group of such accounts, where the implementing rules 

in the Netherlands provide for such election, a credit card account or a 

revolving credit facility treated as a New Entity Account is not required to be 

-30-
reviewed, identified, or reported, provided that the Reporting Netherlands 

Financial Institution maintaining such account implements policies and 

procedures to prevent an account balance owed to the Account Holder that 

exceeds $50,000. 

B. Other New Entity Accounts. With respect to New Entity Accounts not 

described in paragraph A of this section, the Reporting Netherlands 

Financial Institution must determine whether the Account Holder is: (i) a 

Specified U.S. Person; (ii) a Netherlands Financial Institution or other 

Partner Jurisdiction Financial Institution; (iii) a participating FFI, a deemedcompliant FFI, or an exempt beneficial owner, as those terms are defined in 

relevant U.S. Treasury Regulations; or (iv) an Active NFFE or Passive 

NFFE. 

1. Subject to subparagraph B(2) of this section, a Reporting Netherlands 

Financial Institution may determine that the Account Holder is an 

Active NFFE, a Netherlands Financial Institution, or other Partner 

Jurisdiction Financial Institution if the Reporting Netherlands Financial 

Institution reasonably determines that the Account Holder has such 

status on the basis of the Account Holder's Global Intermediary 

Identification Number or other information that is publicly available or 

in the possession of the Reporting Netherlands Financial Institution, 

as applicable. 

2. If the Account Holder is a Netherlands Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution, then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph 1 (b) of Article 4 of the 

Agreement. 

3. In all other cases, a Reporting Netherlands Financial Institution must 

obtain a self-certification from the Account Holder to establish the 

Account Holder's status. Based on the self-certification, the following 

rules apply: 

a) If the Account Holder is a Specified U.S. Person, the Reporting 

Netherlands Financial Institution must treat the account as a 

U.S. Reportable Account. 

b) If the Account Holder is a Passive NFFE, the Reporting 

Netherlands Financial Institution must identify the Controlling 

Persons as determined under AMUKYC Procedures, and must 

determine whether any such person is a U.S. citizen or resident 

on the basis of a self-certification from the Account Holder or 

such person. If any such person is a U.S. citizen or resident, the 

Reporting Netherlands Financial Institution must treat the 

account as a U.S. Reportable Account. 

c) If the Account Holder is: (i) a U.S. Person that is not a Specified 

U.S. Person; (ii) subject to subparagraph B(3)(d) of this section, 

a Netherlands Financial Institution or other Partner Jurisdiction 

Financial Institution; (iii) a participating FFI, a deemed-compliant 

- 31 -
FFI, or an exempt beneficial owner, as those terms are defined 

in relevant U.S. Treasury Regulations; (iv) an Active NFFE; or 

(v) a Passive NFFE none of the Controlling Persons of which is 

a U.S. citizen or resident, then the account is not a U.S. 

Reportable Account, and no reporting is required with respect to 

the account. 

d) If the Account Holder is a Nonparticipating Financial Institution 

(including a Netherlands Financial Institution or other Partner 

Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution), then the account is not a 

U.S. Reportable Account, but payments to the Account Holder 

must be reported as contemplated in subparagraph 1 (b) of 

Article 4 of the Agreement. 

VI. Special Rules and Definitions. 

The following additional rules and definitions apply in implementing the due 

diligence procedures described above: 

A. Reliance on Self-Certifications and Documentarv Evidence. A 

Reporting Netherlands Financial Institution may not rely on a selfcertification or documentary evidence if the Reporting Netherlands 

Financial Institution knows or has reason to know that the self-certification 

or documentary evidence is incorrect or unreliable. 

B. Definitions. The following definitions apply for purposes of this Annex I. 

1. AMUKYC Procedures. "AMLIKYC Procedures" means the 

customer due diligence procedures of a Reporting Netherlands 

Financial Institution pursuant to the anti-money laundering or similar 

requirements of the Netherlands to which such Reporting Netherlands 

Financial Institution is subject. 

2. NFFE. An "NFFE" means any Non-U.S. Entity that is not an FFI as 

defined in relevant U.S. Treasury Regulations or is an Entity 

described in subparagraph 8(4)U) of this section, and also includes 

any Non-U.S. Entity that is resident in the Netherlands or established 

in another Partner Jurisdiction and that is not a Financial Institution. 

3. Passive NFFE. A "Passive NFFE" means any NFFE that is not (i) an 

Active NFFE, or (ii) a withholding foreign partnership or withholding 

foreign trust pursuant to relevant U.S. Treasury Regulations. 

4. Active NFFE. An "Active NFFE" means any NFFE that meets any of 

the following criteria: 

a) Less than 50 percent of the NFFE's gross income for the 

preceding calendar year or other appropriate reporting period is 

passive income and less than 50 percent of the assets held by 

the NFFE during the preceding calendar year or other 

appropriate reporting period are assets that produce or are held 

for the production of passive income; 

-32-
 

b) The stock of the NFFE is regularly traded on an established 

securities market or the NFFE is a Related Entity of an Entity 

the stock of which is regularly traded on an established 

securities market; 

c) The NFFE is organized in a U.S. Territory and all of the owners 

of the payee are bona fide residents of that U.S. Territory; 

d) The NFFE is a government (other than the U.S. government), a 

political subdivision of such government (which, for the 

avoidance of doubt, includes a state, province, county, or 

municipality), or a public body performing a function of such 

government or a political subdivision thereof, a government of a 

U.S. Territory, an international organization, a non-U.S. central 

bank of issue, or an Entity wholly owned by one or more of the 

foregoing; 

e) Substantially all of the activities of the NFFE consist of holding 

(in whole or in part) the outstanding stock of, or providing 

financing and services to, one or more subsidiaries that engage 

in trades or businesses other than the business of a Financial 

Institution, except that an entity shall not qualify for a NFFE 

status if the entity functions (or holds itself out) as an 

investment fund, such as a private equity fund, venture capital 

fund, leveraged buyout fund, or any investment vehicle whose 

purpose is to acquire or fund companies and then hold interests 

in those companies as capital assets for investment purposes; 

f) The NFFE is not yet operating a business and has no prior 

operating history, but is investing capital into assets with the 

intent to operate a business other than that of a Financial 

Institution, provided that the NFFE shall not qualify for this 

exception after the date that is 24 months after the date of the 

initial organization of the NFFE; 

g) The NFFE was not a Financial Institution in the past five years, 

and is in the process of liquidating its assets or is reorganizing 

with the intent to continue or recommence operations in a 

business other than that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging 

transactions with, or for, Related Entities that are not Financial 

Institutions, and does not provide financing or hedging services 

to any Entity that is not a Related Entity, provided that the group 

of any such Related Entities is primarily engaged in a business 

other than that of a Financial Institution; 

i) The NFFE is an "excepted NFFE" as described in relevant U.S. 

Treasury Regulations; or 

j) The NFFE meets all of the following requirements: 

i. It is established and operated in its jurisdiction of residence 

exclusively for religious, charitable, scientific, artistic, 

cultural, athletic, or educational purposes; or it is 

established and operated in its jurisdiction of residence and 

it is a professional organization, business league, chamber 

of commerce, labor organization, agricultural or horticultural 

-33-
organization, CIVIC league or an organization operated 

exclusively for the promotion of social welfare; 

ii. It is exempt from income tax in its jurisdiction of residence; 

iii. It has no shareholders or members who have a proprietary 

or beneficial interest in its income or assets; 

iv. The applicable laws of the NFFE's jurisdiction of residence 

or the NFFE's formation documents do not permit any 

income or assets of the NFFE to be distributed to, or 

applied for the benefit of, a private person or non-charitable 

Entity other than pursuant to the conduct of the NFFE's 

charitable activities, or as payment of reasonable 

compensation for services rendered, or as payment 

representing the fair market value of property which the 

NFFE has purchased; and 

v. The applicable laws of the NFFE's jurisdiction of residence 

or the NFFE's formation documents require that, upon the 

NFFE's liquidation or dissolution, all of its assets be 

distributed to a governmental entity or other non-profit 

organization, or escheat to the government of the NFFE's 

jurisdiction of residence or any political subdivision thereof. 

5. Preexisting Account. A "Preexisting Account" means a Financial 

Account maintained by a Reporting Financial Institution as of June 

30, 2014. 

C. Account Balance Aggregation and Currency Translation Rules. 

1. Aggregation of Individual Accounts. For purposes of determining 

the aggregate balance or value of Financial Accounts held by an 

individual, a Reporting Netherlands Financial Institution is required to 

aggregate all Financial Accounts maintained by the Reporting 

Netherlands Financial Institution, or by a Related Entity, but only to 

the extent that the Reporting Netherlands Financial Institution's 

computerized systems link the Financial Accounts by reference to a 

data element such as client number or taxpayer identification number, 

and allow account balances or values to be aggregated. Each holder 

of a jointly held Financial Account shall be attributed the entire 

balance or value of the jointly held Financial Account for purposes of 

applying the aggregation requirements described in this paragraph 1. 

2. Aggregation of Entity Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an Entity, a 

Reporting Netherlands Financial Institution is required to take into 

account all Financial Accounts that are maintained by the Reporting 

Netherlands Financial Institution, or by a Related Entity, but only to 

the extent that the Reporting Netherlands Financial Institution's 

computerized systems link the Financial Accounts by reference to a 

data element such as client number or taxpayer identification number, 

and allow account balances or values to be aggregated. 

-34-
3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of 

Financial Accounts held by a person to determine whether a Financial 

Account is a High Value Account, a Reporting Netherlands Financial 

Institution is also required, in the case of any Financial Accounts that 

a relationship manager knows, or has reason to know, are directly or 

indirectly owned, controlled, or established (other than in a fiduciary 

capacity) by the same person, to aggregate all such accounts. 

4. Currency Translation Rule. For purposes of determining the 

balance or value of Financial Accounts denominated in a currency 

other than the U.S. dollar, a Reporting Netherlands Financial 

Institution must convert the U.S. dollar threshold amounts described 

in this Annex I into such currency using a published spot rate 

determined as of the last day of the calendar year preceding the year 

in which the Reporting Netherlands Financial Institution is determining 

the balance or value. 

D. Documentary Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any of the following: 

1. A certificate of residence issued by an authorized government body 

(for example, a government or agency thereof, or a municipality) of 

the jurisdiction in which the payee claims to be a resident. 

2. With respect to an individual, any valid identification issued by an 

authorized government body (for example, a government or agency 

thereof, or a municipality), that includes the individual's name and is 

typically used for identification purposes. 

3. With respect to an Entity, any official documentation issued by an 

authorized government body (for example, a government or agency 

thereof, or a municipality) that includes the name of the Entity and 

either the address of its principal office in the jurisdiction (or U.S. 

Territory) in which it claims to be a resident or the jurisdiction (or U.S. 

Territory) in which the Entity was incorporated or organized. 

4. With respect to a Financial Account maintained in a jurisdiction with 

anti-money laundering rules that have been approved by the IRS in 

connection with a Ql agreement (as described in relevant U.S. 

Treasury Regulations), any of the documents, other than a Form W-8 

or W-9, referenced in the jurisdiction's attachment to the Ql 

agreement for identifying individuals or Entities. 

5. Any financial statement, third-party credit report, bankruptcy filing, or 

U.S. Securities and Exchange Commission report. 

E. Alternative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting 

Netherlands Financial Institution may presume that an individual beneficiary 

(other than the owner) of a Cash Value Insurance Contract receiving a 

-35-
death benefit is not a Specified U.S. Person and may treat such Financial 

Account as a non-U.S. Reportable Account unless the Reporting 

Netherlands Financial Institution has actual knowledge, or reason to know, 

that the beneficiary is a Specified U.S. Person. A Reporting Netherlands 

Financial Institution has reason to know that a beneficiary of a Cash Value 

Insurance Contract is a Specified U.S. Person if the information collected 

by the Reporting Netherlands Financial Institution and associated with the 

beneficiary contains U.S. indicia as described in subparagraph (8)(1) of 

section II of this Annex I. If a Reporting Netherlands Financial Institution 

has actual knowledge, or reason to know, that the beneficiary is a Specified 

U.S. Person, the Reporting Netherlands Financial Institution must follow the 

procedures in subparagraph 8(3) of section II of this Annex I. 

F. Reliance on Third Parties. Regardless of whether an election is made 

under paragraph C of section I of this Annex I, the Netherlands may permit 

Reporting Netherlands Financial Institutions to rely on due diligence 

procedures performed by third parties, to the extent provided in relevant 

U.S. Treasury Regulations. 

-36-
Annex II 

NON-REPORTING NETHERLANDS FINANCIAL INSTITUTIONS 

AND PRODUCTS 

This Annex II may be modified by a mutual written decision entered into between 

the Competent Authorities of the Netherlands and the United States: (1) to 

include additional Entities, accounts and products that present a low risk of being 

used by U.S. Persons to evade U.S. tax and that have similar characteristics to 

the Entities, accounts, and products described in this Annex II as of the date of 

entry into force of the Agreement; or (2) to remove Entities, accounts and 

products that, due to changes in circumstances, no longer present a low risk of 

being used by U.S. Persons to evade U.S. tax. Any such addition or removal shall 

be effective on the date of signature of the mutual decision, unless otherwise 

provided therein. Procedures for reaching such a mutual decision may be 

included in the mutual arrangement described in paragraph 6 of Article 3 of the 

Agreement. 

I. Exempt Beneficial Owners. 

The following Entities are treated as Non-Reporting Netherlands Financial 

Institutions and as exempt beneficial owners for purposes of sections 1471 and 

1472 of the U.S. Internal Revenue Code: 

A Governmental Entities 

B. 

1. The Government of the Netherlands, any political subdivision or local 

authority thereof, or any wholly owned agency or instrumentality of 

the foregoing. 

2. Entities within the scope of paragraph 1 shall in any case be: 

a) Agentschap van de Generale Thesaurie (Netherlands State 

Treasury Agency); 

b) Neder/andse Waterschapsbank N. V (Netherlands Waterboard 

Bank); 

c) N. V Bank Nederlandse Gemeenten (Netherlands Municipalities 

Bank); 

d) Nederlandse lnvesteringsbank voor Ontwikke/ingslanden N. V 

(Netherlands lnvestmentbank for Developing Countries); 

e) Gemeentelijke Kredietbanken (Municipal Social Banks). 

Central Bank 

The Central Bank (De Neder/andsche Bank N. V.) and any of its wholly owned 

subsidiaries. 

-37-
C. International Organizations 

International Organizations and any wholly owned agency or instrumentality 

thereof as referred to in Article 39 of the General Tax Act (Aigemene wet inzake 

rijksbelastingen). 

D. Retirement Funds 

1. Any entity that qualifies for benefits under Article 35 (Exempt Pension 

Trusts) of the Double Tax Convention; 

2. A pension fund regulated under the Pension Act (Pensioenwet); 

3. An industry-wide pension fund as meant in the Pension Act and the 

Act on Mandatory Participation in an Industry-Wide Pension Fund 

(Wet verplichte deelneming in een bedrijfstakpensioenfonds 2000); 

4. An occupational pension fund as meant in the Mandatory Pensions 

for Professional Groups Act (Wet verplichte 

beroepspensioensregeling). A notarial pension fund as meant in the 

Act on the Notary Office (Wet op het notarisambt); 

5. A premium pension institution as meant in the Act on Financial 

Supervision (Wet op het financiee/ toezicht); 

6. An entity as meant in paragraph 2 of Article 19a of the Wage Tax Act 

1964 (Wet op de Joonbe/asting 1964) administering a pension 

arrangement in relation to an individual who is both an employee and 

substantial shareholder as referred to in Article 1 of the Pension 

Act( Pensioenwet); 

7. A company pension fund or an industry-wide pension fund as meant 

in the Pension Act BES (Pensioenwet BES). 

E. Investment Entity Wholly Owned by Exempt Beneficial Owners 

An Entity that is a Netherlands Financial Institution 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 Depository Institution (with respect to a loan made to such 

Entity) or an exempt beneficial owner. 

II. Deemed-Compliant Financial Institutions. 

A. Deemed-Compliant Financial Institutions The following Financial 

Institutions are treated as Non-Reporting Netherlands Financial Institutions 

and as deemed-compliant FFis for purposes of section 1471 of the U.S. 

Internal Revenue Code: 

1. Financial Institutions with a Local Client Base Any Financial 

Institution that meets all of the following requirements: 

-38-
a) The Financial Institution must be licensed and regulated under 

the laws of the Netherlands; 

b) The Financial Institution must have no fixed place of business 

outside the Netherlands; 

c) The Financial Institution must not solicit account holders outside 

the Netherlands. For this purpose, a Financial Institution shall 

not be considered to have solicited account holders outside of 

the Netherlands merely because it operates a website, provided 

that the website does not specifically indicate that the Financial 

Institution provides accounts or services to non-residents or 

otherwise target or solicit U.S. customers; 

d) The Financial Institution must be required under the tax laws of 

the Netherlands to perform either information reporting, 

withholding of tax with respect to accounts held by residents of 

the Netherlands or is required to identify resident accounts for 

purposes of satisfying Netherlands AML due diligence 

requirements; 

e) At least 98 percent of the accounts by value provided by the 

Financial Institution must be held by residents (including 

residents that are entities) of the Netherlands or another 

Member State of the European Union; 

f) Subject to subparagraph 1 (g), below, beginning on July 1, 2014, 

the Financial Institution does not provide accounts to (i) any 

Specified U.S. Person who is not a resident of the Netherlands 

(including a U.S. Person that was a resident of the Netherlands 

when the account was opened but subsequently ceases to be a 

resident of the Netherlands), (ii) a Nonparticipating Financial 

Institution, or (iii) any Passive NFFE with Controlling Persons 

who are U.S. citizens or residents; 

g) On or before July 1, 2014, the Financial Institution must 

implement policies and procedures to monitor whether it 

provides any account held by a person described in 

subparagraph 1 (f), and if such an account is discovered, the 

Financial Institution must report such account as though the 

Financial Institution were a Reporting Netherlands Financial 

Institution (including by following the applicable registration 

requirements on the IRS FATCA registration website) or close 

such account; 

h) With respect to each account that is held by an individual who is 

not a resident of the Netherlands or by an entity, and that is 

opened prior to the date that the Financial Institution 

implements the policies and procedures described in 

subparagraph 1 (g), above, the Financial Institution must review 

those accounts in accordance with the procedures described in 

Annex I applicable to Preexisting Accounts to identify any U.S. 

Reportable Account or account held by a Nonparticipating 

Financial Institution, and must close any such accounts that 

were identified, or report on such accounts as though the 

Financial Institution were a Reporting Netherlands Financial 

Institution (including by following the applicable registration 

requirements on the IRS FATCA registration website); 

-39-
i) Each Related Entity of the Financial Institution must be 

incorporated or organized in the Netherlands and meet the 

requirements set forth in this paragraph 1; and 

j) The Financial Institution must not have policies or practices that 

discriminate against opening or maintaining accounts for 

individuals who are Specified U.S. Persons and who are 

residents of the Netherlands. 

2. Non-profit Organizations 

a) An algemeen nut beogende instelling ("ANSI") as described in 

Article 5b of the General Tax Act (Aigemene wet inzake 

rijksbelastingen); 

b) A sociaal belang behartigende inste/ling ("SBBI") as described 

in Article 5c of the General Tax Act (Aigemene wet inzake 

rijksbelastingen); 

c) A steunstichting SBBI as described in Article 5d of the General 

Tax Act (Aigemene wet inzake rijksbelastingen); 

d) A charitable organization that does not have shareholders, 

including a religious, cultural or scientific organization, as meant 

in paragraph 1 (f) of Article 16 of the Income Tax Act BES (Wet 

inkomstenbe/asting BES), established in the Caribbean part of 

the Netherlands; 

e) The following quasi-governmental non-profit organizations: 

i. Stichting Stimuleringsfonds Volkshuisvesting Nederlandse 

Gemeenten (Fund for Stimulation of Public Housing Dutch 

Municipalities); 

ii. Stichting Nationaal Restauratiefonds (Restoration Fund); 

iii. Stichting Groenfonds (Green Fund); 

iv. Besloten vennootschap met beperkte aansprakelijkheid 

Nationale Maatschappij tot Behoud, Ontwikke/ing en 

Exploitatie van lndustrieel Erfgoed B. V. (National Society 

for Salvation, Development and Exploitation of Industrial 

Monuments). 

3. A fund that is exempt under the Corporation Tax Act (Wet op de 

vennootschapsbelasting 1969) and constituted by a Netherlands 

labor union and operated exclusively to administer or provide benefits 

to its members in case they are on strike (stakingskassen) and of 

which the payments are exempt under paragraph 1 (f) of Article 3.13 

of the Income Tax Act 2001 (Wet inkomstenbelasting 2001). 

4. Investment Advisors and Investment Managers 

An Investment Entity resident in the Netherlands the sole activity of 

which is (1) to render investment advice to, and act on behalf of, or 

(2) to manage portfolios for, a customer based on a power of attorney 

or similar instrument (e.g., an investment authority) issued by the 

holder of a Financial Account or based on investment powers in a 

directorship capacity for the purposes of investing, managing, or 

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administering funds deposited in the name of the person or Entity 

granting the power or issuing the similar instrument with a Financial 

Institution other than a Nonparticipating Financial Institution. 

B. Certain Collective Investment Vehicles 

1. In the case of an Investment Entity that is a collective investment 

vehicle resident in the Netherlands if all of the interests in the 

collective investment vehicle (including debt interests in excess of 

$50,000) are held by or through one or more exempt beneficial 

owners, Active NFFEs described in subparagraph 8(4) of section VI 

of Annex I, U.S. Persons that are not Specified U.S. Persons, or 

Financial Institutions that are not Nonparticipating Financial 

Institutions, such collective investment vehicle will be treated as a 

deemed-compliant FFI for purposes of section 1471 of the U.S. 

Internal Revenue Code, and the reporting obligations of any 

Investment Entity (other than a Financial Institution through which 

interests in the collective investment vehicle are held) shall be 

deemed fulfilled with respect to interests in the collective investment 

vehicle. 

2. With respect to interests in: 

a. An Investment Entity that is regulated as a collective investment 

vehicle under the laws of a Partner Jurisdiction, all of the 

interest in which (including debt interests in excess of $50,000) 

are held by or through one or more exempt beneficial owners, 

Active NFFEs described in subparagraph 8(4) of section VI of 

Annex I, U.S. Persons that are not Specified U.S. Persons, or 

Financial Institutions that are not Nonparticipating Financial 

Institutions; or 

b. An Investment Entity that is a qualified collective investment 

vehicle under relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is a 

Netherlands Financial Institution (other than a Financial Institution 

through which interests in the collective investment vehicle are held) 

shall be deemed fulfilled. 

3. In the case of an Investment Entity that is a collective investment 

vehicle resident in the Netherlands not described in paragraph 1 or 2, 

consistent with paragraph 3 of Article 5 of the Agreement, if the 

information required to be reported by the collective investment 

vehicle pursuant to the Agreement with respect to interests in the 

collective investment vehicle is reported by the collective investment 

vehicle or another Investment Entity, the reporting obligations of all 

other Investment Entities required to report with respect to the 

interests in the collective investment vehicle will be deemed fulfilled 

with respect to such interests. 

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Ill. Exempt Products. 

The following categories of accounts and products established in the Netherlands 

and maintained by a Netherlands Financial Institution shall not be treated as 

Financial Accounts, and therefore shall not be U.S. Reportable Accounts or 

accounts held by a Nonparticipating Financial Institution, under the Agreement: 

A. Certain Retirement Accounts or Products 

1. Any account owned by an entity identified in paragraph I of this Annex 

II; 

2. All products offering retirement benefits under the Wage Tax Act 1964 

(Wet op de loonbe/asting 1964) or the Wage Tax Act BES (Wet 

/oonbe/asting BES); 

3. All products that are deductible in the contribution phase and taxable 

in the distribution phase that are covered by Articles 3.124, 3.125 and 

3.126a of the Income Tax Act 2001 (Wet inkomstenbelasting 2001) or 

paragraphs 1(a) and 1(e) of Article 16 of the Income Tax Act BES 

(Wet inkomstenbelasting BES); 

4. An account or product excluded from the definition of Financial 

Account under an agreement between the United States and another 

Partner Jurisdiction to facilitate the implementation of FATCA, 

provided that such account or product is subject to the same 

requirements and oversight under the laws of such other Partner 

Jurisdiction as if such account or product were established in that 

Partner Jurisdiction and maintained by a Partner Jurisdiction 

Financial Institution in that Partner Jurisdiction. 

B. Certain Other Tax-Favored Accounts or Products 

1. A Kapitaa/verzekering Eigen Woning (endowment insurance 

connected with the mortgage on the owner-occupied home, as 

described in Article 3.116 Income Tax Act 2001), a Spaarrecht Eigen 

Woning, a Beleggingsrecht Eigen Woning (the bank and investment 

equivalent of the Kapitaalverzekering Eigen Woning, as described in 

Article 3.116a Income Tax Act 2001) and a bouwdepot (building 

account); 

2. A Stamrecht (tax-favored annuity for severance benefits, as 

described in paragraph 1 (g) of Article 11 and Article 11 a of the Wage 

Tax Act 1964); 

3. A Course of life account (including a levenslooprekening, 

/evensloopverzekering and a /evenslooprecht van deelneming) 

concluded and maintained prior to January 1, 2012. 

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C. Other Exempt Products 

1. An alimony annuity, as provided by Article 6.5 and Article 6.6 of the 

Income Tax Act 2001 (Wet inkomstenbelasting 2001); 

2. Any funeral insurance policy with a premium of € 1,000 per year or 

less. 

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