Model 1B IGA Non-Reciprocal, No TIEA or DTC 

November 30, 2014

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Agreement between the Government of the United States of America and the 

Government of [FATCA Partner] to Improve International Tax Compliance and to 

Implement FATCA

Whereas, the Government of the United States of America and the Government of [FATCA 

Partner] (each, a “Party,” and together, the “Parties”) desire to conclude an agreement to 

improve international tax compliance; 

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 [FATCA Partner] is supportive of the underlying policy goal of 

FATCA to improve tax compliance; 

Whereas, FATCA has raised a number of issues, including that [FATCA Partner] financial 

institutions may not be able to comply with certain aspects of FATCA due to domestic legal 

impediments; 

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for [FATCA Partner] 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 automatic 

exchange, subject to the confidentiality and other protections provided for herein, including 

the provisions limiting the use of the information exchanged; 

Now, therefore, the Parties have agreed as follows: 

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.
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d) The term “[FATCA Partner]” means [full name of FATCA Partner].

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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 [FATCA Partner], [ ].2

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, 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. 

 

1

 [Include a political definition of FATCA Partner. An example of a political definition is “Mexico means the 

United Mexican States.”] 

2 [Include the FATCA Partner Competent Authority.]
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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 “[FATCA Partner] Financial Institution” means (i) any Financial 

Institution [resident in]/[organized under the laws of]3 [FATCA Partner], but 

excluding any branch of such Financial Institution that is located outside 

[FATCA Partner], and (ii) any branch of a Financial Institution not [resident 

in]/[organized under the laws of] [FATCA Partner], if such branch is located in 

[FATCA Partner]. 

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

Financial Institution established 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 established in the 

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

n) The term “Reporting [FATCA Partner] Financial Institution” means any 

[FATCA Partner] Financial Institution that is not a Non-Reporting [FATCA 

Partner] Financial Institution.

o) The term “Non-Reporting [FATCA Partner] Financial Institution” means 

any [FATCA Partner] Financial Institution, or other Entity resident in [FATCA 

Partner], that is described in Annex II as a Non-Reporting [FATCA Partner] 

Financial Institution or that otherwise qualifies as a deemed-compliant FFI or 

an exempt beneficial owner under relevant U.S. Treasury Regulations [in 

effect on the date of signature of this Agreement].4

p) 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 [FATCA Partner] Financial Institution or other Partner Jurisdiction 

Financial Institution other than a Financial Institution treated as a 

Nonparticipating Financial Institution pursuant to subparagraph 3(b) of Article 

5 of this Agreement or the corresponding provision in an agreement between 

the United States and a Partner Jurisdiction. 

 

3 [Select the appropriate classification for Financial Institutions to be treated as FATCA Partner Financial 

Institutions, either based on their place of residence or place of organization. This decision is usually made 

based on the appropriate concept under FATCA Partner’s tax laws, and where there is no such concept, the legal 

organization test is generally chosen.]

4

 [Some of our partner jurisdictions have expressed the need for a static definition of a Non-Reporting FATCA 

Partner Financial Institution, even though we believe that a dynamic approach is preferred to provide flexibility. 

The bracketed language has been included to accommodate jurisdictions that have a need for a static definition.] 
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q) 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(q)(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 noninvestmentlinked, nontransferable immediate life annuity that is issued to an 

individual and monetizes a pension or disability benefit provided under 

an account that is excluded from the definition of Financial Account in 

Annex II.

Notwithstanding the foregoing, the term “Financial Account” does not include 

any account 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(q), 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 first

registered on the books of such Financial Institution prior to July 1, 2014, and 

with respect to interests first 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. 

r) 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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s) 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).

t) 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. 

u) 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.

v) 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. 

w) 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. 

x) 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; 
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(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 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. 

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

by a Reporting [FATCA Partner] 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. 

z) 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. 

aa) 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 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(aa) shall be interpreted in 

accordance with the U.S. Internal Revenue Code. 

bb) 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 
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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. 

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

 

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

ee) 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. 

ff) 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. Notwithstanding the foregoing, [FATCA Partner] 

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. 

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

hh) 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 
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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 U.S. Reportable 

Accounts

1. Subject to the provisions of Article 3 of this Agreement, [FATCA Partner] shall obtain 

the information specified in paragraph 2 of this Article with respect to all U.S. Reportable 

Accounts and shall annually exchange this information with the United States on an 

automatic basis. 

2. The information to be obtained and exchanged with respect to each U.S. Reportable 

Account of each Reporting [FATCA Partner] Financial Institution is:

a) 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; 

b) the account number (or functional equivalent in the absence of an account 

number); 

c) the name and identifying number of the Reporting [FATCA Partner] Financial 

Institution;

d) 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; 

e) in the case of any Custodial Account: 

(1) 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 
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other appropriate reporting period; and 

(2) 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 [FATCA Partner] 

Financial Institution acted as a custodian, broker, nominee, or 

otherwise as an agent for the Account Holder; 

f) 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 

g) in the case of any account not described in subparagraph 2(e) or 2(f) 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 [FATCA Partner] 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. 

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 [FATCA Partner]. 

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) the information to be obtained and exchanged with respect to 2014 is only the 

information described in subparagraphs 2(a) through 2(d) of Article 2 of this 

Agreement; 

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

information described in subparagraphs 2(a) through 2(g) of Article 2 of this 

Agreement, except for gross proceeds described in subparagraph 2(e)(2) of 

Article 2 of this Agreement; and

c) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraphs 2(a) through 

2(g) of Article 2 of this Agreement; 

4. Notwithstanding paragraph 3 of this Article, with respect to each U.S. Reportable 

Account maintained by a Reporting [FATCA Partner] Financial Institution as of the 
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Determination Date, and subject to paragraph 3 of Article 6 of this Agreement, [FATCA 

Partner] is not required to obtain and include in the exchanged information the U.S. TIN of 

any relevant person if such U.S. TIN is not in the records of the Reporting [FATCA Partner] 

Financial Institution. In such a case, [FATCA Partner] shall obtain and include in the 

exchanged information the date of birth of the relevant person, if the Reporting [FATCA 

Partner] 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 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 [FATCA Partner] and the United States shall enter into 

an agreement or arrangement under the mutual agreement procedure provided for in Article 8 

of this Agreement, which shall: 

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

Article 2 of this Agreement; 

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

this Agreement; and

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

under subparagraph 1(b) of Article 4 of this Agreement. 

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

provided for in Article 9 of this Agreement, including the provisions limiting the use of the 

information exchanged. 

Article 4

Application of FATCA to [FATCA Partner] Financial Institutions

1. Treatment of Reporting [FATCA Partner] Financial Institutions. Each Reporting 

[FATCA Partner] Financial Institution shall be treated as complying with, and not subject to 

withholding under, section 1471 of the U.S. Internal Revenue Code if [FATCA Partner] 

complies with its obligations under Articles 2 and 3 of this Agreement with respect to such 

Reporting [FATCA Partner] Financial Institution, and the Reporting [FATCA Partner] 

Financial Institution:

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

Partner] Competent Authority the information required to be reported in 

paragraph 2 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 [FATCA Partner] 

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; 
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d) to the extent that a Reporting [FATCA Partner] 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 [FATCA Partner] 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 [FATCA Partner] 

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 [FATCA Partner] 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 

[FATCA Partner] Financial Institution is treated by the IRS as a Nonparticipating Financial 

Institution pursuant to subparagraph 3(b) of Article 5 of this Agreement. 

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

not require a Reporting [FATCA Partner] 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 paragraph 2 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 [FATCA Partner] 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, [FATCA Partner] 

retirement plans described in Annex II. For this purpose, a [FATCA Partner] retirement plan 

includes an Entity established or located in, and regulated by, [FATCA Partner], 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 [FATCA Partner] 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 [FATCA Partner] 

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 
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Nonparticipating Financial Institutions. If a [FATCA Partner] Financial 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 Financial Institution 

solely due to the expiration of the transitional rule for limited FFIs and limited branches 

under relevant U.S. Treasury Regulations, such [FATCA Partner] 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 [FATCA Partner] 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 [FATCA Partner] 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) [FATCA Partner] 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; and

b) [FATCA Partner] 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. 

7. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding 

Article 1 of this Agreement and the definitions provided in the Annexes to this Agreement, in 

implementing this Agreement, [FATCA Partner] may use, and may permit [FATCA Partner] 

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 
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frustrate the purposes of this Agreement. 

Article 5

Collaboration on Compliance and Enforcement 

1. General Inquiries. Subject to any further terms set forth in a competent authority 

agreement concluded pursuant to paragraph 6 of Article 3 of this Agreement, the U.S. 

Competent Authority may make follow-up requests to the [FATCA Partner] Competent 

Authority, pursuant to which the [FATCA Partner] Competent Authority shall obtain and 

provide additional information with respect to a U.S. Reportable Account, including the 

account statements prepared in the ordinary course of a Reporting [FATCA Partner] 

Financial Institution’s business that summarize the activity (including withdrawals, transfers, 

and closures) of the U.S. Reportable Account. 

2. Minor and Administrative Errors. The U.S. Competent Authority shall notify the 

[FATCA Partner] Competent Authority when the U.S. 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 

[FATCA Partner] Competent Authority shall apply its domestic law (including applicable 

penalties) to obtain corrected and/or complete information or to resolve other infringements 

of this Agreement.

3. Significant Non-Compliance. 

a) The U.S. Competent Authority shall notify the [FATCA Partner] Competent 

Authority when the U.S. Competent Authority has determined that there is 

significant non-compliance with the obligations under this Agreement with 

respect to a Reporting [FATCA Partner] Financial Institution. The [FATCA 

Partner] Competent Authority shall apply its domestic law (including 

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

the notice. 

b) If such enforcement actions do not resolve the non-compliance within a period 

of 18 months after notification of significant non-compliance is first provided 

by the U.S. Competent Authority, the United States shall treat the Reporting

[FATCA Partner] Financial Institution as a Nonparticipating Financial 

Institution pursuant to this subparagraph 3(b). 

4. Reliance on Third Party Service Providers. [FATCA Partner] may allow Reporting 

[FATCA Partner] Financial Institutions to use third party service providers to fulfill the 

obligations imposed on such Reporting [FATCA Partner] Financial Institutions by [FATCA 

Partner], as contemplated in this Agreement, but these obligations shall remain the 

responsibility of the Reporting [FATCA Partner] Financial Institutions.

5. Prevention of Avoidance. [FATCA Partner] shall implement as necessary 

requirements to prevent Financial Institutions from adopting practices intended to circumvent 

the reporting required under this Agreement. 

Article 6
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Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency

1. 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. 

2. Documentation of Accounts Maintained as of the Determination Date. With 

respect to U.S. Reportable Accounts maintained by a Reporting [FATCA Partner] Financial 

Institution as of the Determination Date, [FATCA Partner] commits to establish, by January 1, 

2017, for reporting with respect to 2017 and subsequent years, rules requiring Reporting 

[FATCA Partner] Financial Institutions to obtain the U.S. TIN of each Specified U.S. Person 

as required pursuant to subparagraph 2(a) of Article 2 of this Agreement. 

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions 

1. [FATCA Partner] 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 [FATCA 

Partner] 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 [FATCA Partner] described in Articles 2 and 3 of this Agreement, and subject 

to the same terms and conditions as described therein and in Articles 5, 6, 7, 10 and 11 of this

Agreement. 

2. The United States shall notify [FATCA Partner] 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 [FATCA Partner] declines in 

writing the application thereof. 

Article 8

Mutual Agreement Procedure

1. Where difficulties or doubts arise between the Parties regarding the implementation, 

application, or interpretation of this Agreement, the Competent Authorities shall endeavor to 

resolve the matter by mutual agreement.

2. The Competent Authorities may adopt and implement procedures to facilitate the 

implementation of this Agreement.

3. The Competent Authorities may communicate with each other directly for purposes of 

reaching a mutual agreement under this Article.

Article 9

Confidentiality
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1. The [FATCA Partner] Competent Authority shall treat any information received from 

the United States pursuant to Article 5 of this Agreement as confidential and shall only 

disclose such information as may be necessary to carry out its obligations under this 

Agreement. Such information may be disclosed in connection with court proceedings related 

to the performance of the obligations of [FATCA Partner] under this Agreement. 

2. Information provided to the U.S. Competent Authority pursuant Articles 2 and 5 of 

this Agreement shall be treated as confidential and may be disclosed only to persons or 

authorities (including courts and administrative bodies) of the Government of the United 

States concerned with the assessment, collection, or administration of, the enforcement or 

prosecution in respect of, or the determination of appeals in relation to, U.S. federal taxes, or 

the oversight of such functions. Such persons or authorities shall use such information only 

for such purposes. Such persons may disclose the information in public court proceedings or 

in judicial decisions. The information may not be disclosed to any other person, entity, 

authority, or jurisdiction. Notwithstanding the foregoing, where [FATCA Partner] provides 

prior, written consent, the information may be used for purposes permitted under the 

provisions of a mutual legal assistance treaty in force between the Parties that allows for the 

exchange of tax information. 

Article 10 

Consultations and Amendments

1. In case any difficulties in the implementation of this Agreement arise, either Party 

may, independently of the mutual agreement procedure described in paragraph 1 of Article 8 

of this Agreement, 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 12 of this Agreement. 

Article 11 

Annexes

The Annexes form an integral part of this Agreement. 

Article 12 

Term of Agreement

1. This Agreement shall enter into force on the date of [FATCA Partner]’s written 

notification to the United States that [FATCA Partner] has completed its necessary internal 

procedures for entry into force of this Agreement. 

 

2. Either Party may terminate this Agreement by giving notice of termination in writing 

to the other Party. Such termination shall become effective on the first day of the month 

following the expiration of a period of 12 months after the date of the notice of termination.
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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. 

3. If this Agreement is terminated, both Parties shall remain bound by the provisions of 

Article 9 of this Agreement with respect to any information obtained under this Agreement.
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In witness whereof, the undersigned, being duly authorized thereto by their respective 

Governments, have signed this Agreement. 

Done at [_____], in duplicate, this [__] day of [_____], 20[__]. 

FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF [FATCA 

PARTNER]: