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AGREEMENT BETWEEN THE 

GOVERNMENT OF THE UNITED STATES OF AMERICA 

AND THE GOVERNMENT OF THE KINGDOM OF DENMARK 

TO IMPROVE INTERNATIONAL TAX COMPLIANCE 

AND TO IMPLEMENT FATCA

Whereas, the Government of the United States of America and the Government of the Kingdom 

of Denmark (each, a “Party”) have a longstanding and close relationship with respect to mutual 

assistance in tax matters and desire to conclude an agreement to improve international tax 

compliance by further building on that relationship, 

Whereas, Article 26 of the Convention between the Government of the United States of America 

and the Government of the Kingdom of Denmark for the Avoidance of Double Taxation and the 

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

19, 1999, as amended (“the Convention”), authorizes exchange of information for tax purposes, 

including on an automatic basis, 

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 Kingdom of Denmark is supportive of the underlying policy 

goal of FATCA to improve tax compliance, 

Whereas, FATCA has raised a number of issues, including that Danish financial institutions may 

not be able to comply with certain aspects of FATCA due to domestic legal impediments, 

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

accounts maintained by U.S. financial institutions held by residents of Denmark and is 

committed to exchanging such information with the Government of the Kingdom of Denmark

and pursuing equivalent levels of exchange, 

Whereas, the Parties are committed to working together over the longer term towards achieving 

common reporting and due diligence standards for financial institutions, 
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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 Danish

financial institutions to avoid duplicative reporting,

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for Danish financial institutions,

Whereas, 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 Convention and subject to the confidentiality and other 

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

exchanged under the Convention, 

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; the term, however, 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 “Denmark” means the Kingdom of Denmark; the term, however, does 

not comprise the Faroe Islands or Greenland. 

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 Denmark, the Minister for Taxation 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 
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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, 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(j) 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. 

l) The term “Danish Financial Institution” means (i) any Financial Institution 

resident in Denmark, but excluding any branches of such Financial Institution that 

are located outside Denmark, and (ii) any branch of a Financial Institution not 

resident in Denmark, if such branch is located in Denmark.

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

Institution resident in a Partner Jurisdiction, but excluding any branches of such

Financial Institution that are 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 Danish 

Financial Institution or a Reporting U.S. Financial Institution, as the context 

requires.

o) The term “Reporting Danish Financial Institution” means any Danish

Financial Institution that is not a Non-Reporting Danish 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 branches of such

Financial Institution that are 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. 
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q) The term “Non-Reporting Danish Financial Institution” means any Danish

Financial Institution, or other entity resident in Denmark that is identified in 

Annex II as a Non-Reporting Danish Financial Institution or that otherwise 

qualifies as a deemed-compliant FFI, an exempt beneficial owner, or an excepted 

FFI 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 Danish Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution identified as a Nonparticipating 

Financial Institution pursuant to paragraph 2 of Article 5. 

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) 

above, 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 identified as 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 identified as excluded from the definition of 

Financial Account in Annex II.

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 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. 
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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 
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policy cancellation or termination, decrease in 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 policy holder dividend based upon the underwriting experience of the 

contract or group involved. 

aa) The term “Preexisting Account” means a Financial Account maintained by a 

Reporting Financial Institution as of December 31, 2013. 

bb) The term “Reportable Account” means a U.S. Reportable Account or a Danish

Reportable Account, as the context requires. 

cc) The term “Danish 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 Denmark 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 Denmark, including entities that certify that they are resident in 

Denmark for tax purposes, with respect to which U.S. source income that is 

subject to reporting under chapter 3 or chapter 61 of subtitle A of the U.S. Internal 

Revenue Code is paid or credited. 

dd) The term “U.S. Reportable Account” means a Financial Account maintained by 

a Reporting Danish 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. 

ee) 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. 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 Holders are 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.

ff) The term “U.S. Person” means a U.S. citizen or resident individual, a partnership 
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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 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(ff) shall be interpreted in accordance with the U.S. Internal 

Revenue Code. 

gg) 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) 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 Securities 

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; or (xii) a broker as defined in section 6045(c) of the U.S. Internal Revenue 

Code. 

hh) The term “Entity” means a legal person or a legal arrangement such as a trust. 

ii) The term “Non-U.S. Entity” means an Entity that is not a U.S. Person. 

jj) 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. 

kk) 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 
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control includes direct or indirect ownership of more than 50 percent of the vote 

or value in an Entity. Notwithstanding the foregoing, Denmark 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. 

ll) The term “U.S. TIN” means a U.S. federal taxpayer identifying number. 

mm) The term “Danish TIN” means a Danish taxpayer identifying number. 

nn) 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 Recommendations of the Financial Action Task Force. 

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 the 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, each Party shall obtain the information specified in 

paragraph 2 of this Article with respect to all Reportable Accounts and shall annually exchange 

this information with the other Party on an automatic basis pursuant to the provisions of Article 

26 of the Convention. 

2. The information to be obtained and exchanged is: 

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

Reporting Danish 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 
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number); 

(3) the name and identifying number of the Reporting Danish Financial 

Institution;

(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 

Danish 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 (5) or (6) of this 

paragraph, 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 Danish 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 Danish Reportable Account 

of each Reporting U.S. Financial Institution: 

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

Denmark 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;
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(4) the gross amount of interest paid on a Depository Account; 

(5) the gross amount of U.S. source dividends paid or credited to the account; 

and 

(6) the gross amount of other U.S. source income paid or credited to the 

account, to the extent subject to reporting under chapter 3 or 61 of subtitle 

A 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, the amount and characterization of 

payments made with respect to a U.S. Reportable Account may be determined in accordance 

with the principles of Denmark’s tax laws, and the amount and characterization of payments 

made with respect to a Danish 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, the information exchanged shall 

identify the currency in which each relevant amount is denominated. 

3. With respect to paragraph 2 of Article 2, information is to be obtained and exchanged 

with respect to 2013 and all subsequent years, except that:

a) In the case of Denmark: 

(1) the information to be obtained and exchanged with respect to 2013 and 

2014 is only the information described in subparagraphs (a)(1) to (a)(4); 

(2) the information to be obtained and exchanged with respect to 2015 is the 

information described in subparagraphs (a)(1) to (a)(7), except for gross 

proceeds described in subparagraph (a)(5)(B); and

(3) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraph (a)(1) to 

(a)(7);

b) In the case of the United States, the information to be obtained and exchanged 

with respect to 2013 and subsequent years is all of the information identified in 

subparagraph (b). 

4. Notwithstanding paragraph 3 of this Article, with respect to each Reportable Account that 

is a Preexisting Account, and subject to paragraph 4 of Article 6, the Parties are not required to 

obtain and include in the exchanged information the Danish 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 
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Financial Institution. In such 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. 

5. Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 shall 

be exchanged within nine months after the end of the calendar year to which the information 

relates. Notwithstanding the foregoing, the information that relates to calendar year 2013 shall 

be exchanged no later than September 30, 2015. 

6. The Competent Authorities of Denmark and the United States shall enter into an 

agreement under the mutual agreement procedure provided for in Article 25 of the Convention, 

which shall: 

a) establish the procedures for the automatic exchange obligations described in 

Article 2; 

b) prescribe rules and procedures as may be necessary to implement Article 5; and

c) establish as necessary procedures for the exchange of the information reported 

under subparagraph 1(b) of Article 4. 

7. All information exchanged shall be subject to the confidentiality and other protections 

provided for in the Convention, including the provisions limiting the use of the information 

exchanged.

Article 4

Application of FATCA to Danish Financial Institutions

1. Treatment of Reporting Danish Financial Institutions. Each Reporting Danish

Financial Institution shall be treated as complying with, and not subject to withholding under, 

section 1471 of the U.S. Internal Revenue Code if Denmark complies with its obligations under 

Articles 2 and 3 with respect to such Reporting Danish Financial Institution, and the Reporting 

Danish Financial Institution:

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

Authority the information required to be reported in subparagraph 2(a) of Article 

2 in the time and manner described in Article 3; 

b) for each of 2015 and 2016, reports annually to the Danish 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 registration requirements applicable to Financial Institutions in 

Partner Jurisdictions; 
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d) to the extent that a Reporting Danish 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 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 Danish Financial Institution that is not described in 

subparagraph (d) of this paragraph 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 Danish 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 Danish Financial Institution with respect to which 

the conditions of this paragraph are not satisfied shall not be subject to withholding under section 

1471 of the U.S. Internal Revenue Code unless such Reporting Danish Financial Institution is 

identified by the IRS as a Nonparticipating Financial Institution pursuant to subparagraph 2(b) of 

Article 5.

2. Suspension of Rules Relating to Recalcitrant Accounts. The United States shall not 

require a Reporting Danish 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, subject to the provisions of Article 3, with respect to such account. 

3. Specific Treatment of Retirement Plans. The United States shall treat as a deemedcompliant FFI or exempt beneficial owner, as appropriate, for purposes of section 1471 of the 

U.S. Internal Revenue Code Danish retirement plans described and identified in Annex II. For 

this purpose, a Danish retirement plan includes an entity established or located in and regulated 

in Denmark, 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 Denmark and 

regulated with respect to contributions, distributions, reporting, sponsorship, and taxation. 

4. Identification and Treatment of Other Deemed-Compliant FFIs and Exempt 

Beneficial Owners. The United States shall treat each Non-Reporting Danish 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 That Are Nonparticipating Financial 

Institutions. If a Danish Financial Institution, that otherwise meets the requirements of 
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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, such Danish 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 for purposes of section 1471 of the U.S. 

Internal Revenue Code, provided that: 

a) the Danish 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 branch or Related Entity is 

located, and such branch or Related Entity is not used by the Danish 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. 

Article 5

Collaboration on Compliance and Enforcement

1. Minor and Administrative Errors. Subject to any further terms set forth in a competent 

authority agreement executed pursuant to paragraph 6 of Article 3, a Competent Authority can 

make an inquiry directly to a Reporting Financial Institution in the other jurisdiction where it 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 agreement may provide that a Competent Authority shall notify the 

Competent Authority of the other Party when the first-mentioned Competent Authority makes 

such an inquiry of a Reporting Financial Institution in the other jurisdiction regarding the 

Reporting Financial Institution’s compliance with the conditions set forth in 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 
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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 Danish 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 Danish Financial Institution as a Nonparticipating Financial 

Institution. The IRS shall make available a list of all Reporting Danish Financial 

Institutions and other Partner Jurisdiction Financial Institutions that are treated as 

Nonparticipating Financial Institutions pursuant to this paragraph. 

3. Reliance on Third Party Service Providers. Each Party may allow Reporting Financial 

Institutions to use third party service providers to fulfill the obligations imposed on them 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. 

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 Denmark. The Government 

of the United States is committed to further improve transparency and enhance the exchange 

relationship with Denmark by pursuing the adoption of regulations and advocating and 

supporting relevant legislation to achieve such equivalent levels of reciprocal automatic 

exchange.

2. Treatment of Passthru Payments and Gross Proceeds. The Parties are committed to 

work together, along with other partners, 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 other partners, 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. 
16 

4. Documentation of Accounts Maintained as of January 1, 2014. With respect to 

Reportable Accounts that are Preexisting Accounts maintained by a Reporting Financial 

Institution:

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 Danish TIN of each Account Holder of a 

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

Article 2; and

b) Denmark commits to establish, by January 1, 2017, for reporting with respect to 

2017 and subsequent years, rules requiring Reporting Danish 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.

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions 

1. Denmark 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 Danish 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 Denmark 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 the Agreement. 

2. The United States shall notify Denmark of any such more favorable terms and shall apply 

such more favorable terms automatically under this Agreement as if they were specified in this 

Agreement and effective as of the date of the entry into force of the agreement incorporating the 

more favorable terms.

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 consent of the Parties. Unless otherwise 

agreed upon, such an amendment shall enter into force through the same procedures as set forth 

in paragraph 1 of Article 10. 
17 

Article 9 

Annexes

The Annexes form an integral part of this Agreement. 

Article 10 

Term of Agreement

1. The Parties shall notify each other in writing when their necessary internal procedures for 

entry into force have been completed. The Agreement shall enter into force on the later of 

January 1, 2013, or the date of the later of such notifications, and shall continue in force until 

terminated. 

2. Either Party may terminate the 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. 
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. Denmark shall require that Reporting Danish 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 shall be read to include the equivalent in other 

currencies.

2. 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 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 reporting period that ends with or within that 

calendar year. 

4. Subject to paragraph II.E (1), 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, 

Denmark may allow its Reporting Danish 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. 

II. Preexisting Individual Accounts. The following rules and procedures apply for 

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 Danish Financial Institution elects otherwise, where the implementing 

rules in Denmark provide for such an election, the following accounts are not 

required to be reviewed, identified, or reported as U.S. Reportable Accounts: 
2 

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

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

31, 2013. 

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

Accounts that are Cash Value Insurance Contracts and Annuity Contracts with a 

balance or value of $250,000 or less as of December 31, 2013. 

3. Preexisting Individual Accounts that are Cash Value Insurance Contracts 

or Annuity Contracts, provided the law or regulations of Denmark or the United 

States effectively prevents the sale of Cash Value Insurance Contracts or Annuity 

Contracts to U.S. residents, such as if the relevant Financial Institution does not 

have the required registration under U.S. law, and the law of Denmark requires 

reporting or withholding with respect to insurance products held by residents of 

Denmark. 

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

B. Review Procedures for Preexisting Individual Accounts With a Balance or 

Value as of December 31, 2013, that Exceeds $50,000 ($250,000 for a Cash 

Value Insurance Contract or Annuity Contract), But Does Not Exceed 

$1,000,000 (“Lower Value Accounts”)

1. Electronic Record Search. The Reporting Danish Financial Institution 

must review electronically searchable data maintained by the Reporting Danish

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 or U.S. “in-care-of” address);

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 

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 Danish Financial Institution has on file for the account holder. 

In the case of a Preexisting Individual Account that is a Lower Value 
3 

Account, an “in-care-of” address outside the United States shall not be 

treated as U.S. indicia.

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

discovered in the electronic search, then no further action is required until there is 

a change in circumstances described in subparagraph C (2) of this section with 

respect to the account that results in one or more U.S. indicia being associated 

with the account. 

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

discovered in the electronic search, then the Reporting Danish Financial 

Institution must treat the account as a U.S. Reportable Account unless it elects to 

apply subparagraph B (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 B (1) of this 

section, a Reporting Danish Financial Institution is not required to treat an 

account as a U.S. Reportable Account if: 

a) Where account holder information unambiguously indicates a 

U.S. place of birth, the Reporting Danish 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 renouncing U.S. citizenship; or

(b) the reason the account holder did not obtain U.S. 

citizenship at birth.

b) Where account holder information contains a current U.S. 

mailing or residence address, or one or more U.S. telephone numbers 

that are the only telephone numbers associated with the account, the 

Reporting Danish Financial Institution obtains or has previously reviewed 

and maintains a record of: 

(1) a self-certification that the account holder is not a U.S. 
4 

citizen or resident for tax purposes (which may be on an IRS Form 

W-8 or other similar agreed form); and

(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.

c) Where account holder information contains standing instructions 

to transfer funds to an account maintained in the United States, the 

Reporting Danish Financial Institution obtains or has previously reviewed 

and maintains a record of: 

(1) a self-certification that the account holder is not a U.S. 

citizen or 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 VI.D of this 

Annex I, establishing the account holder’s non-U.S. status. 

d) Where account holder information contains a currently effective 

power of attorney or signatory authority granted to a person with a U.S. 

address, has an “in care of” address or “hold 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 Danish Financial Institution obtains or 

has previously reviewed and maintains a record of: 

(1) a self-certification that the account holder is not a U.S. 

citizen or 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 VI.D 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 December 31, 2015. 

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 B (1) of this section being associated with the 

account, then Reporting Danish Financial Institution must treat the account as a 

U.S. Reportable Account unless subparagraph B (4) of this section applies. 
5 

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 December 31, 2013, or December 31 

of Any Subsequent Year (“High-Value Accounts”)

1. Electronic Record Search. The Reporting Danish Financial Institution

must review electronically searchable data maintained by the Reporting Danish

Financial Institution for any of the U.S. indicia identified in subparagraph B (1) of 

this section.

2. Paper Record Search. If the Reporting Danish Financial Institution’s 

electronically searchable databases include fields for and capture all of the 

information identified 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 High Value Accounts, the Reporting Danish

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 Danish Financial

Institution within the last five years for any of the U.S. indicia identified in 

subparagraph B (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 Danish

Financial Institution pursuant to AML/KYC 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 Danish Financial Institution is not required to perform the paper record 

search described in subparagraph D (2) of this section if the Reporting Danish

Financial Institution’s electronically searchable information includes the 

following: 
6 

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 Danish Financial Institution; 

c) the account holder’s telephone number(s) currently on file, if any, 

with the Reporting Danish 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 Danish 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 Danish 

Financial Institution must treat as U.S. Reportable Accounts any High Value 

Accounts assigned to a relationship manager (including any accounts aggregated 

with such 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 B (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 D (4) of this section, then no further action is 

required until there is a change in circumstances described in 

subparagraph E (4) of this section. 

b) If any of the U.S. indicia listed in subparagraph B (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 Danish Financial Institution must treat the account as a U.S. 

Reportable Account unless subparagraph B (4) of this section applies.

c) Except for Depository Accounts described in paragraph 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. 
7 

E. Additional Procedures Applicable to High Value Accounts

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

December 31, 2013, the Reporting Danish Financial Institution must complete the 

enhanced review procedures described in paragraph D of this section with respect 

to such account by December 31, 2014. If based on this review such account is 

identified as a U.S. Reportable Account, the Reporting Danish Financial 

Institution must report the required information about such account with respect 

to 2013 and 2014 in the first report on the Account. For all subsequent years, 

information about the account should be reported on an annual basis. 

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

December 31, 2013, but becomes a High Value Account as of the last day of a 

subsequent calendar year, the Reporting Danish 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 Danish

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. 

3. Once a Reporting Danish Financial Institution applies the enhanced 

review procedures set forth above to a High Value Account, the Reporting Danish

Financial Institution shall not be required to re-apply such procedures, other than 

the relationship manager inquiry 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 B (1) of this 

section being associated with the account, then the Reporting Danish Financial 

Institution must treat the account as a U.S. Reportable Account unless 

subparagraph B (4) of this section applies. 

5. A Reporting Danish 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 Danish

Financial Institution shall be required to treat the new address as a change in 

circumstances and shall be required to obtain the appropriate documentation from 

the account holder. 

III. New Individual Accounts. The following rules and procedures apply for identifying 

U.S. Reportable Accounts among accounts held by individuals and opened on or after January 1, 

2014 (“New Individual Accounts”).
8 

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

Reporting Danish Financial Institution elects otherwise where the implementing rules in 

Denmark provide for such an election: 

1. A New Individual Account that is a Depository Account is not required to 

be reviewed, identified, or reported as a U.S. Reportable Account unless the 

account balance exceeds $50,000 at the end of any calendar year or other 

appropriate reporting period. 

2. A New Individual Account that is a Cash Value Insurance Contract is not 

required to be reviewed, identified, or reported as a U.S. Reportable Account 

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, the Reporting Danish

Financial Institution must obtain a self-certification which may be part of the account 

opening documentation, that allows the Reporting Danish 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 country) and confirm 

the reasonableness of such self-certification based on the information obtained by the 

Reporting Danish Financial Institution in connection with the opening of the account, 

including any documentation collected pursuant to AML/KYC Procedures. 

C. If the self-certification establishes that the account holder is resident in the United 

States for tax purposes, the Reporting Danish 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).

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

that causes the Reporting Danish Financial Institution to know or have reason to know 

that the original self-certification is incorrect or unreliable, the Reporting Danish

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 Danish Financial Institution is unable to obtain a 

valid self-certification, the Reporting Danish 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 a 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 Danish Financial Institution elects otherwise, where the 

implementing rules in Danish provide for such an election, Preexisting Entity Accounts 
9 

with account balances that do not exceed $250,000 as of December 31, 2013, are not 

required to be reviewed, identified, or reported as U.S. Reportable Accounts until the 

account balance exceeds $1,000,000.

B. Entity Accounts Subject to Review. Preexisting Entity Accounts that have an 

account balance or value that exceeds $250,000 as of December 31, 2013, and 

Preexisting Entity Accounts that initially do not exceed $250,000 but the account balance 

of which later exceeds $1,000,000 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 

paragraph 1(b) of Article 4 of the Agreement are reported to the Danish 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 Danish Financial 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 a Nonparticipating Financial Institution:

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 

AML/KYC Procedures) to determine whether the information indicates 

that the entity account holder is a U.S. Person. For this purpose, 

information indicating that the entity 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 entity account holder is a U.S. 

Person, the Reporting Danish 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 
10 

relationship purposes (including information collected pursuant to 

AML/KYC Procedures) to determine whether the information indicates 

that the entity account holder is a Financial Institution.

b) If the information indicates that the entity account holder is a 

Financial Institution, 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 Paragraph 1(b) of Article 4 of the Agreement.

a) Subject to subparagraph (b) of this paragraph, if the account holder 

is a Danish Financial Institution or other Partner Jurisdiction Financial 

Institution, then no further review, identification, or reporting is required 

with respect to the account.

b) A Danish Financial Institution or other Partner Jurisdiction 

Financial Institution shall be treated as a Nonparticipating Financial 

Institution if it is identified as such by the IRS pursuant to paragraph 2 of 

Article 5 of the Agreement.

c) If the account holder, is not a Danish Financial Institution or other 

Partner Jurisdiction Financial Institution, then the Reporting Danish

Financial Institution must treat the entity as a Nonparticipating Financial 

Institution payments to which are reportable under paragraph 1(b) of 

Article 4 of the Agreement, unless the Reporting Danish Financial 

Institution: 

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

W-8 or similar agreed form) from the entity that it is a certified 

deemed-compliant FFI, an exempt beneficial owner, or an 

excepted FFI, 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 entity’s FATCA identifying number on 

a published IRS FFI list. 

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 Danish Financial Institution must identify (i) whether the entity has 

Controlling Persons, (ii) whether the entity is a Passive NFFE, and (iii) whether 

any of the Controlling Persons of the entity is a citizen or resident of the United 

States. In making these determinations the Reporting Danish Financial Institution 

should follow the guidance in sub-paragraphs (a) through (d) of this paragraph in 
11 

the order most appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an entity, a 

Reporting Danish Financial Institution may rely on information collected 

and maintained pursuant to AML/KYC Procedures. 

b) For purposes of determining whether the entity is a Passive NFFE, 

the Reporting Danish 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 entity is an Active NFFE.

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

Passive NFFE is a citizen or resident of the United States for tax purposes, 

a Reporting Danish Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AML/KYC Procedures in the case of a Preexisting Entity Account 

held by one or more NFFEs with an account balance 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 that exceeds 

$1,000,000. 

d) If any Controlling Person of a Passive NFFE is a citizen or resident 

of the United States, the account shall be treated as a U.S. Reportable 

Account. 

E. Timing of Review and Additional Procedures Applicable to Preexisting 

Entity Accounts

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

that exceeds $250,000 as of December 31, 2013, must be completed by December 

31, 2015. 

2. Review of Preexisting Entity Accounts with a balance or value that does 

not exceed $250,000 as of December 31, 2013, but exceeds $1,000,000 as of 

December 31 of a subsequent year, must be completed within six months after the 

end of the calendar year in which the account balance exceeds $1,000,000. 

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

Account that causes the Reporting Danish Financial Institution to know or have 
12 

reason to know that the self-certification or other documentation associated with 

an account is incorrect or unreliable, the Reporting Danish Financial Institution 

must re-determine the status of the account in accordance with the procedures set 

forth in paragraph D of this section. 

V. New Entity Accounts. The following rules and procedures apply to accounts held by 

entities and opened on or after January 1, 2014 (“New Entity Accounts”). 

A. The Reporting Danish Financial Institution must determine whether the account 

holder is: (i) a Specified U.S. Person; (ii) a Danish Financial Institution or other Partner 

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

exempt beneficial owner, or an excepted FFI, as those terms are defined in relevant U.S. 

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

B. A Reporting Danish Financial Institution may determine that an account holder is 

an Active NFFE, a Danish Financial Institution, or other Partner Jurisdiction Financial 

Institution if the Reporting Danish Financial Institution reasonably determines that the 

entity has such status on the basis of information that is publicly available or in the 

possession of the Reporting Danish Financial Institution. 

C. In all other cases, a Reporting Danish Financial Institution must obtain a selfcertification from the account holder to establish the account holder’s status. 

1. If the entity account holder is a Specified U.S. Person, the Reporting 

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

2. If the entity account holder is a Passive NFFE, the Reporting Danish

Financial Institution must identify the Controlling Persons as determined under 

AML/KYC Procedures, and must determine whether any such person is a citizen 

or resident of the United States on the basis of a self-certification from the 

account holder or such person. If any such person is a citizen or resident of the 

United States, the account shall be treated as a U.S. Reportable Account.

3. If the entity account holder is: (i) a U.S. Person that is not a Specified 

U.S. Person; (ii) subject to subparagraph C (4) of this section, a Danish Financial 

Institution or other Partner Jurisdiction Financial Institution; (iii) a participating 

FFI, a deemed-compliant FFI, an exempt beneficial owner, or an excepted FFI, 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.

4. If the entity account holder is a Nonparticipating Financial Institution 

(including a Danish Financial Institution or other Partner Jurisdiction Financial 

Institution that is identified by the IRS as a Nonparticipating Financial Institution 

pursuant to paragraph 2 of Article 5 of the Agreement), then the account is not a 
13 

U.S. Reportable Account, but payments to the account holder must be reported as 

contemplated in paragraph 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 Documentary Evidence. A Reporting 

Danish Financial Institution may not rely on a self-certification or documentary evidence 

if the Reporting Danish Financial Institution knows or has reason to know that the selfcertification or documentary evidence is incorrect or unreliable.

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

1. AML/KYC Procedures. “AML/KYC Procedures” means the customer due 

diligence procedures of a Reporting Danish Financial Institution pursuant to 

the anti-money laundering or similar requirements of Denmark to which such 

Reporting Danish 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, and also includes any Non-U.S. Entity 

that is resident in Denmark or other 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; 

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 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 non-U.S. government, 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; 
14 

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

whole or in part) the outstanding stock of, and 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 NFFE shall not qualify for this status if the NFFE 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; or

i) The NFFE meets all of the following requirements:

i. It is established and maintained in its country of residence 

exclusively for religious, charitable, scientific, artistic, cultural, 

or educational purposes; 

ii. It is exempt from income tax in its country 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 Entity’s country of residence or the 

Entity’s formation documents do not permit any income or assets 

of the Entity 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 Entity’s charitable activities, or as payment of 

reasonable compensation for services rendered, or as payment 

representing the fair market value of property which the Entity 

has purchased; and
15 

v. The applicable laws of the Entity’s country of residence or the 

Entity’s formation documents require that, upon the Entity’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 Entity’s country of residence or any 

political subdivision thereof. 

C. Account Balance Aggregation and Currency Translation Rules

1. Aggregation of Individual Accounts. For purposes of determining the 

aggregate balance or value of accounts held by an individual, a Reporting Danish

Financial Institution shall be required to aggregate all accounts maintained by the 

Reporting Danish Financial Institution, or Related Entities, but only to the extent 

that the Reporting Danish Financial Institution’s computerized systems link the 

accounts by reference to a data element such as client number or taxpayer 

identification number, and allow account balances to be aggregated. Each holder 

of a jointly held account shall be attributed the entire balance or value of the 

jointly held account for purposes of applying the aggregation requirements 

described in this paragraph. 

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

aggregate balance or value of accounts held by an Entity, a Reporting Danish

Financial Institution shall be required to take into account all accounts held by 

Entities that are maintained by the Reporting Danish Financial Institution, or 

Related Entities, to the extent that the Reporting Danish Financial Institution’s 

computerized systems link the accounts by reference to a data element such as 

client number or taxpayer identification number and allow account balances to be 

aggregated.

3. Special Aggregation Rule Applicable to Relationship Managers. For 

purposes of determining the aggregate balance or value of accounts held by a 

person to determine whether an account is a High Value Account, a Reporting 

Danish Financial Institution shall also be required, in the case of any 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 accounts denominated in a currency other than the U.S. dollar, a 

Reporting Danish Financial Institution must convert the 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 Danish 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: 
16 

1. A certificate of residence issued by an appropriate tax official of the 

country 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 country (or U.S. Territory) in which it claims to be a 

resident or the country (or U.S. Territory) in which the Entity was incorporated or 

organized. 

4. With respect to an account maintained in a jurisdiction with anti-money 

laundering rules that have been approved by the IRS in connection with a QI 

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 QI agreement for identifying individuals or entities.

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

U.S. Securities and Exchange Commission report. 
ANNEX II

NON-REPORTING DANISH FINANCIAL INSTITUTIONS 

AND PRODUCTS

This Annex II may be updated by a mutual agreement entered into between the Competent 

Authorities of Denmark 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 identified 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. Procedures for reaching such a mutual agreement may be included in the mutual 

agreement described in paragraph 6 of Article 3 of the Agreement.

I. Exempt Beneficial Owners. The following categories of institutions are Non-Reporting 

Danish Financial Institutions that are treated as exempt beneficial owners for purposes of section 

1471 of the U.S. Internal Revenue Code: 

A. Governmental Entities

• The Danish government, any political subdivision of the Danish government, or any 

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

B. Central Bank

• The Central Bank of Denmark (Nationalbanken) 

C. Retirement Funds 

• Any pension fund established in Denmark and described in Article 22, subparagraph 

2 (e) (Limitation of Benefits) in the Protocol signed at Copenhagen on May 2, 2006, 

amending the Convention between the Government of the United States of America 

and the Government of the Kingdom of Denmark for the Avoidance of Double 

Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed 

on August 19, 1999. 

 

II. Deemed-Compliant Financial Institutions. 

A. The following categories of institutions are Non-Reporting Danish Financial Institutions that 

are treated as deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal Revenue 

Code: 

1. Small Financial Institutions with Local Client Base

A Danish Financial Institution that meets all of the following requirements:
2 

a. The Financial Institution must be licensed and regulated under the laws 

of Denmark; 

b. The Financial Institution must have no fixed place of business outside 

Denmark; 

 

c. The Financial Institution must not solicit account holders outside 

Denmark. For this purpose, a Financial Institution shall not be considered 

to have solicited account holders outside of Denmark merely because it 

operates a website, provided that the website does not specifically indicate 

that the Financial Institution provides accounts or services to nonresidents 

or otherwise target or solicit U.S. customers; 

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

Denmark to perform either information reporting or withholding of tax 

with respect to accounts held by residents of Denmark; 

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 Denmark or another Member State of the European Union; 

f. Subject to subparagraph 1(g), below, beginning on January 1, 2014, the 

Financial Institution does not maintain accounts for (i) any Specified U.S. 

Person who is not a resident of Denmark (including a U.S. Person that 

was a resident of Denmark when the account was opened but 

subsequently ceases to be a resident of Denmark), (ii) a Nonparticipating 

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

who are U.S. citizens or residents; 

g. On or before January 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 Danish Financial Institution or 

close such account; 

h. With respect to each account that is held by an individual who is not a 

resident of Denmark 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 
3 

report on such accounts as though the Financial Institution were a 

Reporting Danish Financial Institution; 

i. Each Related Entity of the Financial Institution must be incorporated or 

organized in Denmark and must meet the requirements set forth in this 

paragraph; 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 Denmark. 

B. Certain Collective Investment Vehicles

In the case of an Investment Entity that is a collective investment vehicle regulated under 

the laws of Denmark: 

a) 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 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) will be deemed fulfilled with respect 

to interests in the collective investment vehicle; or 

b) if the collective investment vehicle is not described in paragraph (a), consistent 

with paragraph 3 of Article 5 of the Agreement, if the information required to be 

reported by the collective investment vehicle under 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.

C. Nonprofit Organizations 

• Charitable associations, funds, foundations and institutions covered by section 8A 

of the Danish Tax Assessment Act (Ligningsloven) 

D. Housing Cooperatives 

• Housing cooperatives (andelsboligforeninger) as defined in the Housing 

Cooperatives Act (Consolidated Act 1716 of 16 December 2010, sections 1 and 

1a)
4 

• Associations of Condominium Owners (ejerforeninger) as defined in the 

Condominium Act (Consolidated Act 1713 of 16 December 2010 section 2, 

paragraph 2) 

• Social Housing Companies (almene boligselskaber) as defined in and 

incorporated under the Social Housing Act (Consolidated Act 884 of 10 August 

2011, section 1) 

III. Exempt Products. The following categories of accounts and products established in 

Denmark and maintained by a Danish 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 

• Pension plans covered by chapter 1 of the Danish Pension Tax Act 

(Pensionsbeskatningsloven). 

• Self Pension Savings Account (selvpensioneringskonti) as defined in section 51 of 

the Danish Pension Tax Act. 

B. Certain Other Tax-Favored Accounts or Products 

• Property Savings Contacts (Boligsparekontrakter) opened in accordance with 

Consolidated Act 26 of January 12, 2005. 

• Property Savings Accounts (Boligopsparingskonti) opened in accordance with 

Consolidated Act 107 of February 21, 2005. 

• Children's Savings Accounts (Børneopsparingskonti) opened in accordance with 

Regulation 1059 of November 17, 2011. 

• Education Savings Accounts (Uddannelseskonti) opened in accordance with 

Consolidated Act 769 of September 17, 1993.