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Agreement between the Government of the United States of America and 

the Government of the Kingdom of Thailand 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 Thailand (each, a “Party,” and together, the 

“Parties”) desire to conclude an agreement to improve international tax 

compliance through mutual assistance in tax matters based on an effective 

infrastructure for the automatic exchange of information;

Whereas, Article 28 of the Convention between the Government of the United 

States of America and the Government of the Kingdom of Thailand for the 

Avoidance of Double Taxation and the Prevention of Fiscal Evasion with 

Respect to Taxes on Income, done at Bangkok on November 26, 1996 (the 

“Convention”), authorizes the 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 Thailand is supportive of the

underlying policy goal of FATCA to improve tax compliance;

Whereas, FATCA has raised a number of issues, including that Thai 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 the Kingdom of Thailand and is committed to

exchanging such information with the Government of the Kingdom of 

Thailand and pursuing equivalent levels of exchange, provided that the 

appropriate safeguards and infrastructure for an effective exchange 

relationship are in place;

Whereas, an intergovernmental approach to FATCA implementation would 

address legal impediments and reduce burdens for Thai 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 
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for therein, including the provisions limiting the use of the information 

exchanged under the Convention;

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.

d) The term “Thailand” means the Kingdom of Thailand.

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 Thailand, the Minister of Finance or his 

authorized representative.

g) The term “Financial Institution” means a Custodial Institution, 

a Depository Institution, an Investment Entity, or a Specified 

Insurance Company.

h) The term “Custodial Institution” means any Entity that holds, 

as a substantial portion of its business, financial assets for the 

account of others. An entity holds financial assets for the account 
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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 noncalendar 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.

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 “Thai Financial Institution” means (i) any Financial 

Institution organized under the laws of Thailand, but excluding 

any branch of such Financial Institution that is located outside 

Thailand, and (ii) any branch of a Financial Institution not 
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organized under the laws of Thailand, if such branch is located in 

Thailand.

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 Financial Institution” means a Reporting 

Thai Financial Institution or a Reporting U.S. Financial 

Institution, as the context requires.

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

Thai Financial Institution that is not a Non-Reporting Thai 

Financial Institution.

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

Financial Institution that is resident in the United States, but 

excluding any branch of such Financial Institution that is located 

outside the United States, and (ii) any branch of a Financial 

Institution not resident in the United States, if such branch is 

located in the United States, provided that the Financial 

Institution or branch has control, receipt, or custody of income 

with respect to which information is required to be exchanged 

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

q) The term “Non-Reporting Thai Financial Institution” means 

any Thai Financial Institution, or other Entity resident in 

Thailand, that is described in Annex II as a Non-Reporting Thai 

Financial Institution or that otherwise qualifies as a deemedcompliant FFI or an exempt beneficial owner under relevant U.S. 

Treasury Regulations.

r) The term “Nonparticipating Financial Institution” means a 

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

Treasury Regulations, but does not include a Thai Financial

Institution or other Partner Jurisdiction Financial Institution other 

than a Financial Institution treated as a Nonparticipating 

Financial Institution pursuant to subparagraph 2(b) of Article 5 of 

this Agreement or the corresponding provision in an agreement 

between the United States and a Partner Jurisdiction.
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s) The term “Financial Account” means an account maintained by 

a Financial Institution, and includes:

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

because it is an Investment Entity, any equity or debt 

interest (other than interests that are regularly traded on an 

established securities market) in the Financial Institution;

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

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

interest in the Financial Institution (other than interests that 

are regularly traded on an established securities market), if 

(i) the value of the debt or equity interest is determined, 

directly or indirectly, primarily by reference to assets that 

give rise to U.S. Source Withholdable Payments, and (ii) 

the class of interests was established with a purpose of 

avoiding reporting in accordance with this Agreement; and

(3) any Cash Value Insurance Contract and any Annuity 

Contract issued or maintained by a Financial Institution, 

other than a noninvestment-linked, nontransferable 

immediate life annuity that is issued to an individual and 

monetizes a pension or disability benefit provided under an 

account 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(s), an interest in a

Financial Institution is not “regularly traded” and shall be treated 

as a Financial Account if the holder of the interest (other than a 

Financial Institution acting as an intermediary) is registered on 

the books of such Financial Institution. The preceding sentence 

will not apply to interests 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
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on or after July 1, 2014, a Financial Institution is not required to 

apply the preceding sentence prior to January 1, 2016.

t) The term “Depository Account” includes any commercial, 

checking, savings, time, or thrift account, or an account that is 

evidenced by a certificate of deposit, thrift certificate, investment 

certificate, certificate of indebtedness, or other similar instrument 

maintained by a Financial Institution in the ordinary course of a 

banking or similar business. A Depository Account also includes 

an amount held by an insurance company pursuant to a 

guaranteed investment contract or similar agreement to pay or 

credit interest thereon.

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

Insurance Contract or Annuity Contract) for the benefit of another 

person that holds any financial instrument or contract held for 

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

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

indebtedness, a currency or commodity transaction, a credit 

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

principal contract, an Insurance Contract or Annuity Contract, 

and any option or other derivative instrument).

v) The term “Equity Interest” means, in the case of a partnership 

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

the partnership. In the case of a trust that is a Financial 

Institution, an Equity Interest is considered to be held by any

person treated as a settlor or beneficiary of all or a portion of the 

trust, or any other natural person exercising ultimate effective 

control over the trust. A Specified U.S. Person shall be treated as 

being a beneficiary of a foreign trust if such Specified U.S. 

Person has the right to receive directly or indirectly (for example, 

through a nominee) a mandatory distribution or may receive, 

directly or indirectly, a discretionary distribution from the trust. 

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

Annuity Contract) under which the issuer agrees to pay an 

amount upon the occurrence of a specified contingency involving 

mortality, morbidity, accident, liability, or property risk.

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

issuer agrees to make payments for a period of time determined 

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

more individuals. The term also includes a contract that is 
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considered to be an Annuity Contract in accordance with the law, 

regulation, or practice of the jurisdiction in which the contract 

was issued, and under which the issuer agrees to make payments 

for a term of years. 

y) The term “Cash Value Insurance Contract” means an 

Insurance Contract (other than an indemnity reinsurance contract 

between two insurance companies) that has a Cash Value greater 

than $50,000.

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

the policyholder is entitled to receive upon surrender or 

termination of the contract (determined without reduction for any 

surrender charge or policy loan), and (ii) the amount the 

policyholder can borrow under or with regard to the contract. 

Notwithstanding the foregoing, the term “Cash Value” does not 

include an amount payable under an Insurance Contract as: 

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

providing indemnification of an economic loss incurred 

upon the occurrence of the event insured against; 

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

under an Insurance Contract (other than under a life 

insurance contract) due to policy cancellation or 

termination, decrease in risk exposure during the effective 

period of the Insurance Contract, or arising from a 

redetermination of the premium due to correction of 

posting or other similar error; or 

(3) a policyholder dividend based upon the underwriting 

experience of the contract or group involved.

aa) The term “Reportable Account” means a U.S. Reportable 

Account or a Thai Reportable Account, as the context requires.

bb) The term “Thai 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 Thailand 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 Thailand, including an Entity that 

certifies that it is resident in Thailand for tax purposes, with 
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respect to which U.S. source income that is subject to reporting 

under chapter 3 of subtitle A or chapter 61 of subtitle F of the 

U.S. Internal Revenue Code is paid or credited.

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

Account maintained by a Reporting Thai Financial Institution and 

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

Entity with one or more Controlling Persons that is a Specified 

U.S. Person. Notwithstanding the foregoing, an account shall not 

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

identified as a U.S. Reportable Account after application of the 

due diligence procedures in Annex I.

dd) The term “Account Holder” means the person listed or identified 

as the holder of a Financial Account by the Financial Institution 

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

Institution, holding a Financial Account for the benefit or account 

of another person as agent, custodian, nominee, signatory, 

investment advisor, or intermediary, is not treated as holding the 

account for purposes of this Agreement, and such other person is 

treated as holding the account. For purposes of the immediately

preceding sentence, the term “Financial Institution” does not 

include a Financial Institution organized or incorporated in a U.S.

Territory. In the case of a Cash Value Insurance Contract or an 

Annuity Contract, the Account Holder is any person entitled to 

access the Cash Value or change the beneficiary of the contract. 

If no person can access the Cash Value or change the beneficiary, 

the Account Holder is any person named as the owner in the 

contract and any person with a vested entitlement to payment 

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

Value Insurance Contract or an Annuity Contract, each person 

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

Account Holder.

ee) The term “U.S. Person” means a U.S. citizen or resident 

individual, a partnership or corporation organized in the United 

States or under the laws of the United States or any State thereof, 

a trust if (i) a court within the United States would have authority 

under applicable law to render orders or judgments concerning 

substantially all issues 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 
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1(ee) shall be interpreted in accordance with the U.S. Internal 

Revenue Code.

ff) The term “Specified U.S. Person” means a U.S. Person, other 

than: (i) a corporation the stock of which is regularly traded on 

one or more established securities markets; (ii) any corporation 

that is a member of the same expanded affiliated group, as 

defined in section 1471(e)(2) of the U.S. Internal Revenue Code,

as a corporation described in clause (i); (iii) the United States or 

any wholly owned agency or instrumentality thereof; (iv) any 

State of the United States, any U.S. Territory, any political 

subdivision of any of the foregoing, or any wholly owned agency 

or instrumentality of any one or more of the foregoing; (v) any 

organization exempt from taxation under section 501(a) of the 

U.S. Internal Revenue Code or an individual retirement plan as 

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

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

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

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

regulated investment company as defined in section 851 of the 

U.S. Internal Revenue Code or any entity registered with the U.S. 

Securities and Exchange Commission under the Investment 

Company Act of 1940 (15 U.S.C. 80a-64); (ix) any common trust 

fund as defined in section 584(a) of the U.S. Internal Revenue 

Code; (x) any trust that is exempt from tax under section 664(c) 

of the U.S. Internal Revenue Code or that is described in section 

4947(a)(1) of the U.S. Internal Revenue Code; (xi) a dealer in 

securities, commodities, or derivative financial instruments 

(including notional principal contracts, futures, forwards, and 

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

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

the U.S. Internal Revenue Code; or (xiii) any tax-exempt trust 

under a plan that is described in section 403(b) or section 457(g) 

of the U.S. Internal Revenue Code. 

gg) The term “Entity” means a legal person or a legal arrangement 

such as a trust. 

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

Person.

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

payment of interest (including any original issue discount), 

dividends, rents, salaries, wages, premiums, annuities, 
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compensations, remunerations, emoluments, and other fixed or 

determinable annual or periodical gains, profits, and income, if 

such payment is from sources within the United States. 

Notwithstanding the foregoing, a U.S. Source Withholdable 

Payment does not include any payment that is not treated as a 

withholdable payment in relevant U.S. Treasury Regulations.

jj) An Entity is a “Related Entity” of another Entity if either Entity 

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

control. For this purpose control includes direct or indirect 

ownership of more than 50 percent of the vote or value in an 

Entity. Notwithstanding the foregoing, Thailand may treat an 

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

are not members of the same expanded affiliated group as defined 

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

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

number.

ll) The term “Thai TIN” means a Thai taxpayer identifying number. 

mm) The term “Controlling Persons” means the natural persons who 

exercise control over an Entity. In the case of a trust, such term 

means the settlor, the trustees, the protector (if any), the 

beneficiaries or class of beneficiaries, and any other natural 

person exercising ultimate effective control over the trust, and in 

the case of a legal arrangement other than a trust, such term 

means persons in equivalent or similar positions. The term 

“Controlling Persons” shall be interpreted in a manner consistent 

with the Financial Action Task Force Recommendations.

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

context otherwise requires or the Competent Authorities agree to a common 

meaning (as permitted by domestic law), have the meaning that it has at that 

time under the law of the Party applying this Agreement, any meaning under 

the applicable tax laws of that Party prevailing over a meaning given to the 

term under other laws of that Party.

Article 2

Obligations to Obtain and Exchange Information with Respect to 

Reportable Accounts

1. Subject to the provisions of Article 3 of this Agreement, each Party shall 

obtain the information specified in paragraph 2 of this Article with respect to 
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all Reportable Accounts and shall annually exchange this information with the 

other Party on an automatic basis pursuant to the provisions of Article 28 of 

the Convention.

2. The information to be obtained and exchanged is:

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

Account of each Reporting Thai Financial Institution:

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

Person that is an Account Holder of such account and, in 

the case of a Non-U.S. Entity that, after application of the 

due diligence procedures set forth in Annex I, is identified 

as having one or more Controlling Persons that is a 

Specified U.S. Person, the name, address, and U.S. TIN (if 

any) of such entity and each such Specified U.S. Person;

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

absence of an account number); 

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

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

otherwise as an agent for the Account Holder; 

(6) in the case of any Depository Account, the total gross 

amount of interest paid or credited to the account during 

the calendar year or other appropriate reporting period; and

(7) in the case of any account not described in subparagraph 

2(a)(5) or 2(a)(6) of this Article, the total gross amount 

paid or credited to the Account Holder with respect to the 

account during the calendar year or other appropriate 

reporting period with respect to which the Reporting Thai 

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 Thai

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

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

resident of Thailand and is an Account Holder of the 

account; 

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

absence of an account number); 

(3) the name and identifying number of the Reporting U.S. 

Financial Institution;

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

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

to the account; and 

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

credited to the account, to the extent subject to reporting 

under chapter 3 of subtitle A or chapter 61 of subtitle F of 

the U.S. Internal Revenue Code.
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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 Thailand, and the amount and characterization of payments 

made with respect to a Thai Reportable Account may be determined in 

accordance with principles of U.S. federal income tax law. 

2. For purposes of the exchange obligation in Article 2 of this Agreement, 

the information exchanged shall identify the currency in which each relevant 

amount is denominated.

3. With respect to paragraph 2 of Article 2 of this Agreement, information 

is to be obtained and exchanged with respect to 2014 and all subsequent years, 

except that:

a) In the case of Thailand:

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

to 2014 is only the information described in subparagraphs 

2(a)(1) through 2(a)(4) of Article 2 of this Agreement; 

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

to 2015 is the information described in subparagraphs 

2(a)(1) through 2(a)(7) of Article 2 of this Agreement, 

except for gross proceeds described in subparagraph 

2(a)(5)(B) of Article 2 of this Agreement; and

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

to 2016 and subsequent years is the information described 

in subparagraphs 2(a)(1) through 2(a)(7) of Article 2 of this 

Agreement;

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

and exchanged with respect to 2014 and subsequent years is all of 

the information identified in subparagraph 2(b) of Article 2 of 

this Agreement. 

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

Reportable Account that is maintained by a Reporting Financial Institution as 

of June 30, 2014, and subject to paragraph 3 of Article 6 of this Agreement, 

the Parties are not required to obtain and include in the exchanged information 
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the Thai TIN or the U.S. TIN, as applicable, of any relevant person if such 

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

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

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

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

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 Thailand and the United States shall enter 

into an agreement or arrangement under the mutual agreement procedure 

provided for in Article 27 of the Convention, which shall:

a) establish the procedures for the automatic exchange obligations 

described in Article 2 of this Agreement;

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

Article 5 of this Agreement; and

c) establish as necessary procedures for the exchange of the 

information reported under subparagraph 1(b) of Article 4 of this 

Agreement.

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

other protections provided for in the Convention, including the provisions 

limiting the use of the information exchanged.

8. Following entry into force of this Agreement, each Competent 

Authority shall provide written notification to the other Competent Authority 

when it is satisfied that the jurisdiction of the other Competent Authority has 

in place (i) appropriate safeguards to ensure that the information received 

pursuant to this Agreement shall remain confidential and be used solely for tax 

purposes, and (ii) the infrastructure for an effective exchange relationship 

(including established processes for ensuring timely, accurate, and 

confidential information exchanges, effective and reliable communications, 

and demonstrated capabilities to promptly resolve questions and concerns 

about exchanges or requests for exchanges and to administer the provisions of 

Article 5 of this Agreement). The Competent Authorities shall endeavor in 

good faith to meet, prior to September 2015, to establish that each jurisdiction 

has such safeguards and infrastructure in place.

9. The obligations of the Parties to obtain and exchange information under 

Article 2 of this Agreement shall take effect on the date of the later of the 
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written notifications described in paragraph 8 of this Article. Notwithstanding 

the foregoing, if the Thai Competent Authority is satisfied that the United 

States has the safeguards and infrastructure described in paragraph 8 of this 

Article in place, but additional time is necessary for the U.S. Competent 

Authority to establish that Thailand has such safeguards and infrastructure in 

place, the obligation of Thailand to obtain and exchange information under 

Article 2 of this Agreement shall take effect on the date of the written 

notification provided by the Thai Competent Authority to the U.S. Competent 

Authority pursuant to paragraph 8 of this Article. 

10. This Agreement shall terminate12 months following entry into force if 

Article 2 of this Agreement is not in effect for either Party pursuant to 

paragraph 9 of this Article by that date. 

Article 4

Application of FATCA to Thai Financial Institutions

1. Treatment of Reporting Thai Financial Institutions. Each Reporting 

Thai Financial Institution shall be treated as complying with, and not subject 

to withholding under, section 1471 of the U.S. Internal Revenue Code if 

Thailand complies with its obligations under Articles 2 and 3 of this 

Agreement with respect to such Reporting Thai Financial Institution, and the 

Reporting Thai Financial Institution:

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

Thai Competent Authority the information required to be reported 

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

and manner described in Article 3 of this Agreement;

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

Competent Authority the name of each Nonparticipating 

Financial Institution to which it has made payments and the 

aggregate amount of such payments;

c) complies with the applicable registration requirements on the IRS 

FATCA registration website;

d) to the extent that a Reporting Thai 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 
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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 Thai 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 Thai 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 Thai 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 Thai Financial Institution is treated by the IRS as 

a Nonparticipating Financial Institution pursuant to subparagraph 2(b) of 

Article 5 of this Agreement.

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

States shall not require a Reporting Thai Financial Institution to withhold tax 

under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to 

an account held by a recalcitrant account holder (as defined in section 

1471(d)(6) of the U.S. Internal Revenue Code), or to close such account, if the 

U.S. Competent Authority receives the information set forth in subparagraph 

2(a) of Article 2 of this Agreement, subject to the provisions of Article 3 of 

this Agreement, with respect to such account.

3. Specific Treatment of Thai 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, Thai retirement plans described in Annex II. For this purpose, 

a Thai retirement plan includes an Entity established or located in, and 

regulated by, Thailand, 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 Thailand 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 NonReporting Thai Financial Institution as a deemed-compliant FFI or as an 
17

exempt beneficial owner, as appropriate, for purposes of section 1471 of the 

U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a Thai 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 Thai 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 Thai 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 Thai 

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: 
18

a) Thailand shall not be obligated to obtain and exchange 

information with respect to a calendar year that is prior to the 

calendar year with respect to which similar information is 

required to be reported to the IRS by participating FFIs pursuant 

to relevant U.S. Treasury Regulations;

b) Thailand shall not be obligated to begin exchanging information 

prior to the date by which participating FFIs are required to report 

similar information to the IRS under relevant U.S. Treasury 

Regulations; 

c) the United States shall not be obligated to obtain and exchange 

information with respect to a calendar year that is prior to the first 

calendar year with respect to which Thailand is required to obtain 

and exchange information; and

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

information prior to the date by which Thailand is required to 

begin exchanging information.

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, 

Thailand may use, and may permit Thai Financial Institutions to use, a 

definition in relevant U.S. Treasury Regulations in lieu of a corresponding 

definition in this Agreement, provided that such application would not 

frustrate the purposes of this Agreement.

Article 5

Collaboration on Compliance and Enforcement

1. Minor and Administrative Errors. A Competent Authority shall

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

Competent Authority has reason to believe that administrative errors or other 

minor errors may have led to incorrect or incomplete information reporting or 

resulted in other infringements of this Agreement. The Competent Authority 

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

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

infringements of this Agreement.

2. Significant Non-Compliance.

a) A Competent Authority shall notify the Competent Authority of 

the other Party when the first-mentioned Competent Authority 
19

has determined that there is significant non-compliance with the 

obligations under this Agreement with respect to a Reporting 

Financial Institution in the other jurisdiction. The Competent 

Authority of such other Party shall apply its domestic law 

(including applicable penalties) to address the significant noncompliance described in the notice. 

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

enforcement actions do not resolve the non-compliance within a 

period of 18 months after notification of significant noncompliance is first provided, the United States shall treat the 

Reporting Thai Financial Institution as a Nonparticipating 

Financial Institution pursuant to this subparagraph 2(b).

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 such Reporting Financial Institutions by a Party, as 

contemplated in this Agreement, but these obligations shall remain the 

responsibility of the Reporting Financial Institutions.

4. Prevention of Avoidance. The Parties shall implement as necessary 

requirements to prevent Financial Institutions from adopting practices 

intended to circumvent the reporting required under this Agreement.

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 Thailand. The Government of the United States is committed 

to further improve transparency and enhance the exchange relationship with

Thailand by pursuing the adoption of regulations and advocating and 

supporting relevant legislation to achieve such equivalent levels of reciprocal 

automatic information exchange.

2. Treatment of Passthru Payments and Gross Proceeds. The Parties 

are committed to work together, along with Partner Jurisdictions, to develop a 

practical and effective alternative approach to achieve the policy objectives of 

foreign passthru payment and gross proceeds withholding that minimizes 

burden. 
20

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

respect to Reportable Accounts maintained by a Reporting Financial 

Institution as of June 30, 2014:

a) The United States commits to establish, by January 1, 2017, for 

reporting with respect to 2017 and subsequent years, rules 

requiring Reporting U.S. Financial Institutions to obtain and 

report the Thai TIN of each Account Holder of a Thai Reportable 

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

of this Agreement; and

b) Thailand commits to establish, by January 1, 2017, for reporting 

with respect to 2017 and subsequent years, rules requiring 

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

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

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

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions 

1. Thailand 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 Thai 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 Thailand described in Articles 2

and 3 of this Agreement, and subject to the same terms and conditions as 

described therein and in Articles 5 through 9 of this Agreement. 

2. The United States shall notify Thailand 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 Thailand declines in writing the application thereof.

Article 8

Consultations and Amendments

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

either Party may request consultations to develop appropriate measures to 

ensure the fulfillment of this Agreement.

2. This Agreement may be amended by written mutual agreement of the 

Parties. Unless otherwise agreed upon, such an amendment shall enter into 
21

force through the same procedures as set forth in paragraph 1 of Article 10 of 

this Agreement.

Article 9

Annexes

The Annexes form an integral part of this Agreement.

Article 10

Term of Agreement

1. This Agreement shall enter into force on the date of Thailand’s written 

notification to the United States that Thailand has completed its necessary 

internal procedures for entry into force of this Agreement. 

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

termination in writing to the other Party. Such termination shall become 

effective on the first day of the month following the expiration of a period of 

12 months after the date of the notice of termination.

3. The Parties shall, prior to December 31, 2016, consult in good faith to 

amend this Agreement as necessary to reflect progress on the commitments set 

forth in Article 6 of this Agreement.

In witness whereof, the undersigned, being duly authorized thereto by their 

respective Governments, have signed this Agreement.

Done at Bangkok, in duplicate, in the English and Thai languages, both texts 

being equally authentic, this 4th day of March, 2016.

FOR THE GOVERNMENT OF

THE UNITED STATES OF 

AMERICA:

Mr. Glyn T. Davies

Ambassador of the United States of 

America

FOR THE GOVERNMENT OF 

THE KINGDOM OF THAILAND:

Mr. Apisak Tantivorawong 

Minister of Finance
Annex I – 1

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. Thailand shall require that Reporting Thai Financial Institutions 

apply the due diligence procedures contained in this Annex I to identify 

U.S. Reportable Accounts and accounts held by Nonparticipating 

Financial Institutions. 

B. For purposes of the Agreement,

1. All dollar amounts are in U.S. dollars and shall be read to 

include the equivalent in other currencies.

2. Except as otherwise provided herein, the balance or value 

of an account shall be determined as of the last day of the 

calendar year or other appropriate reporting period.

3. Where a balance or value threshold is to be determined as 

of June 30, 2014 under this Annex I, the relevant balance or value 

shall be determined as of that day or the last day of the reporting 

period ending immediately before June 30, 2014, and where a 

balance or value threshold is to be determined as of the last day 

of a calendar year under this Annex I, the relevant balance or 

value shall be determined as of the last day of the calendar year 

or other appropriate reporting period. 

4. Subject to subparagraph E(1) of section II of this Annex I, 

an account shall be treated as a U.S. Reportable Account 

beginning as of the date it is identified as such pursuant to the due 

diligence procedures in this Annex I.

5. Unless otherwise provided, information with respect to a 

U.S. Reportable Account shall be reported annually in the 

calendar year following the year to which the information relates.

 

C. As an alternative to the procedures described in each section of 

this Annex I, Thailand may permit Reporting Thai Financial Institutions 

to rely on the procedures described in relevant U.S. Treasury 
Annex I – 2

Regulations to establish whether an account is a U.S. Reportable 

Account or an account held by a Nonparticipating Financial Institution. 

Thailand may permit Reporting Thai Financial Institutions to make such 

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

all relevant Financial Accounts or, separately, with respect to any 

clearly identified group of such accounts (such as by line of business or 

the location of where the account is maintained). 

II. Preexisting Individual Accounts. The following rules and procedures 

apply for purposes of identifying U.S. Reportable Accounts among Preexisting 

Accounts held by individuals (“Preexisting Individual Accounts”).

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

Reported. Unless the Reporting Thai Financial Institution elects 

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

separately, with respect to any clearly identified group of such accounts, 

where the implementing rules in Thailand provide for such an election, 

the following Preexisting Individual Accounts are not required to be 

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

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

Individual Account with a balance or value that does not exceed 

$50,000 as of June 30, 2014.

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

Individual Account that is a Cash Value Insurance Contract or an

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

of June 30, 2014.

3. A Preexisting Individual Account that is a Cash Value 

Insurance Contract or an Annuity Contract, provided the law or 

regulations of Thailand or the United States effectively prevent 

the sale of such a Cash Value Insurance Contract or an Annuity 

Contract to U.S. residents (e.g., if the relevant Financial 

Institution does not have the required registration under U.S. law, 

and the law of Thailand requires reporting or withholding with 

respect to insurance products held by residents of Thailand).

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

B. Review Procedures for Preexisting Individual Accounts With 

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

($250,000 for a Cash Value Insurance Contract or Annuity 
Annex I – 3

Contract), But Does Not Exceed $1,000,000 (“Lower Value 

Accounts”).

1. Electronic Record Search. The Reporting Thai Financial

Institution must review electronically searchable data maintained 

by the Reporting Thai Financial Institution for any of the 

following U.S. indicia:

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

or resident;

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

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

a U.S. post office box);

d) Current U.S. telephone number;

e) Standing instructions to transfer funds to an account 

maintained in the United States;

f) Currently effective power of attorney or signatory 

authority 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 Thai Financial Institution has on 

file for the Account Holder. In the case of a Preexisting 

Individual Account that is a Lower Value Account, an “incare-of” address outside the United States or “hold mail” 

address shall not be treated as U.S. indicia. 

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

this section are discovered in the electronic search, then no 

further action is required until there is a change in circumstances 

that results in one or more U.S. indicia being associated with the 

account, or the account becomes a High Value Account described 

in paragraph D of this section.

3. If any of the U.S. indicia listed in subparagraph B(1) of 

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

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

being associated with the account, then the Reporting Thai 

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

Account unless it elects to apply subparagraph B(4) of this 
Annex I – 4

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 Thai Financial

Institution is not required to treat an account as a U.S. Reportable 

Account if:

a) Where the Account Holder information 

unambiguously indicates a U.S. place of birth, the 

Reporting Thai 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 governmentissued identification evidencing the Account 

Holder’s citizenship or nationality in a country other 

than the United States; and

(3) A copy of the Account Holder’s Certificate of 

Loss of Nationality of the United States or a 

reasonable explanation of: 

(a) The reason the Account Holder does not 

have such a certificate despite relinquishing

U.S. citizenship; or

(b) The reason the Account Holder did not 

obtain U.S. citizenship at birth.

b) Where the Account Holder information contains a 

current U.S. mailing or residence address, or one or more 

U.S. telephone numbers that are the only telephone 

numbers associated with the account, the Reporting Thai 

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 
Annex I – 5

purposes (which may be on an IRS Form W-8 or 

other similar agreed form); and

(2) Documentary evidence, as defined in 

paragraph D of section VI of this Annex I, 

establishing the Account Holder’s non-U.S. status.

c) Where the Account Holder information contains 

standing instructions to transfer funds to an account

maintained in the United States, the Reporting Thai 

Financial Institution obtains, or has previously reviewed 

and maintains a record of:

(1) A self-certification that the Account Holder is 

neither a U.S. citizen nor a U.S. resident for tax 

purposes (which may be on an IRS Form W-8 or 

other similar agreed form); and

(2) Documentary evidence, as defined in 

paragraph D of section VI of this Annex I, 

establishing the Account Holder’s non-U.S. status.

d) Where the Account Holder information contains a 

currently effective power of attorney or signatory 

authority granted to a person with a U.S. address, has an 

“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 Thai Financial Institution obtains, or has 

previously reviewed and maintains a record of:

(1) A self-certification that the Account Holder is 

neither a U.S. citizen nor a U.S. resident for tax 

purposes (which may be on an IRS Form W-8 or 

other similar agreed form); or

(2) Documentary evidence, as defined in 

paragraph D of section VI of this Annex I,

establishing the Account Holder’s non-U.S. status.

C. Additional Procedures Applicable to Preexisting Individual 

Accounts That Are Lower Value Accounts.
Annex I – 6

1. Review of Preexisting Individual Accounts that are Lower 

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

2016. 

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 the

Reporting Thai Financial Institution must treat the account as a 

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

applies.

3. Except for Depository Accounts described in subparagraph 

A(4) of this section, any Preexisting Individual Account that has 

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

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

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

Person.

D. Enhanced Review Procedures for Preexisting Individual 

Accounts With a Balance or Value That Exceeds $1,000,000 as of 

June 30, 2014, or December 31 of 2015 or Any Subsequent Year 

(“High Value Accounts”).

1. Electronic Record Search. The Reporting Thai Financial

Institution must review electronically searchable data maintained 

by the Reporting Thai Financial Institution for any of the U.S. 

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

2. Paper Record Search. If the Reporting Thai Financial

Institution’s electronically searchable databases include fields for,

and capture all of the information described in, subparagraph 

D(3) of this section, then no further paper record search is 

required. If the electronic databases do not capture all of this 

information, then with respect to a High Value Account, the 

Reporting Thai 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 Thai Financial

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

described in subparagraph B(1) of this section:

a) The most recent documentary evidence collected 

with respect to the account;
Annex I – 7

b) The most recent account opening contract or 

documentation;

c) The most recent documentation obtained by the 

Reporting Thai 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 Thai Financial Institution is not 

required to perform the paper record search described in 

subparagraph D(2) of this section if the Reporting Thai Financial

Institution’s electronically searchable information includes the 

following:

a) The Account Holder’s nationality or residence 

status;

b) The Account Holder’s residence address and mailing 

address currently on file with the Reporting Thai Financial

Institution;

c) The Account Holder’s telephone number(s) currently 

on file, if any, with the Reporting Thai 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 Thai 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. 
Annex I – 8

4. Relationship Manager Inquiry for Actual Knowledge. 

In addition to the electronic and paper record searches described 

above, the Reporting Thai Financial Institution must treat as a 

U.S. Reportable Account any High Value Account assigned to a 

relationship manager (including any Financial Accounts

aggregated with such High Value Account) if the relationship 

manager has actual knowledge that the Account Holder is a 

Specified U.S. Person.

5. Effect of Finding U.S. Indicia.

a) If none of the U.S. indicia listed in subparagraph 

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 that 

results in one or more U.S. indicia being associated with 

the account.

b) If any of the U.S. indicia listed in subparagraph 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 Thai 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.

c) Except for Depository Accounts described in 

subparagraph A(4) of this section, any Preexisting 

Individual Account that has been identified as a U.S. 

Reportable Account under this section shall be treated as a 

U.S. Reportable Account in all subsequent years, unless the 

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

E. Additional Procedures Applicable to High Value Accounts.

1. If a Preexisting Individual Account is a High Value 

Account as of June 30, 2014, the Reporting Thai Financial

Institution must complete the enhanced review procedures 

described in paragraph D of this section with respect to such 
Annex I – 9

account by June 30, 2015. If based on this review such account is 

identified as a U.S. Reportable Account on or before December 

31, 2014, the Reporting Thai Financial Institution must report the 

required information about such account with respect to 2014 in 

the first report on the account and on an annual basis thereafter. 

In the case of an account identified as a U.S. Reportable Account 

after December 31, 2014 and on or before June 30, 2015, the 

Reporting Thai Financial Institution is not required to report 

information about such account with respect to 2014, but must 

report information about the account on an annual basis 

thereafter.

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

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

as of the last day of 2015 or any subsequent calendar year, the 

Reporting Thai 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 Thai Financial Institution 

must report the required information about such account with 

respect to the year in which it is identified as a U.S. Reportable 

Account and subsequent years on an annual basis, unless the 

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

3. Once a Reporting Thai Financial Institution applies the 

enhanced review procedures described in paragraph D of this 

section to a High Value Account, the Reporting Thai Financial

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

the relationship manager inquiry described in subparagraph D(4) 

of this section, to the same High Value Account in any subsequent 

year.

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

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

in subparagraph B(1) of this section being associated with the 

account, then the Reporting Thai 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.

5. A Reporting Thai Financial Institution must implement 

procedures to ensure that a relationship manager identifies any 
Annex I – 10

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 Thai 

Financial Institution is required to treat the new address as a 

change in circumstances and, if it elects to apply subparagraph 

B(4) of this section, is required to obtain the appropriate 

documentation from the Account Holder.

F. Preexisting Individual Accounts That Have Been Documented 

for Certain Other Purposes. A Reporting Thai Financial Institution 

that has previously obtained documentation from an Account Holder to 

establish the Account Holder’s status as neither a U.S. citizen nor a U.S. 

resident in order to meet its obligations under a qualified intermediary, 

withholding foreign partnership, or withholding foreign trust agreement 

with the IRS, or to fulfill its obligations under chapter 61 of Title 26 of 

the United States Code, is not required to perform the procedures 

described in subparagraph B(1) of this section with respect to Lower 

Value Accounts or subparagraphs D(1) through D(3) of this section with 

respect to High Value Accounts.

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

for purposes of identifying U.S. Reportable Accounts among Financial 

Accounts held by individuals and opened on or after July 1, 2014 (“New 

Individual Accounts”).

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

Reported. Unless the Reporting Thai Financial Institution elects 

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

separately, with respect to any clearly identified group of such accounts, 

where the implementing rules in Thailand provide for such an election, 

the following New Individual Accounts are not required to be reviewed, 

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

1. A Depository Account unless the account balance exceeds 

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

reporting period. 

2. A Cash Value Insurance Contract unless the Cash Value 

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

appropriate reporting period. 

B. Other New Individual Accounts. With respect to New 

Individual Accounts not described in paragraph A of this section, upon 

account opening (or within 90 days after the end of the calendar year in 
Annex I – 11

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

the Reporting Thai Financial Institution must obtain a self-certification,

which may be part of the account opening documentation, that allows 

the Reporting Thai Financial Institution to determine whether the 

Account Holder is resident in the United States for tax purposes (for 

this purpose, a U.S. citizen is considered to be resident in the United 

States for tax purposes, even if the Account Holder is also a tax resident 

of another jurisdiction) and confirm the reasonableness of such selfcertification based on the information obtained by the Reporting Thai 

Financial Institution in connection with the opening of the account, 

including any documentation collected pursuant to AML/KYC 

Procedures.

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

is resident in the United States for tax purposes, the Reporting 

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

Reportable Account and obtain a self-certification that includes 

the Account Holder’s U.S. TIN (which may be an IRS Form W-9 

or other similar agreed form).

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

Individual Account that causes the Reporting Thai Financial

Institution to know, or have reason to know, that the original selfcertification is incorrect or unreliable, the Reporting Thai 

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 Thai Financial Institution is unable to 

obtain a valid self-certification, the Reporting Thai Financial

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

IV. Preexisting Entity Accounts. The following rules and procedures 

apply for purposes of identifying U.S. Reportable Accounts and accounts held 

by Nonparticipating Financial Institutions among Preexisting Accounts held 

by Entities (“Preexisting Entity Accounts”).

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

Reported. Unless the Reporting Thai Financial Institution elects 

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

separately, with respect to any clearly identified group of such accounts, 

where the implementing rules in Thailand provide for such an election, 

a Preexisting Entity Account with an account balance or value that does

not exceed $250,000 as of June 30, 2014, is not required to be reviewed, 
Annex I – 12

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

balance or value exceeds $1,000,000.

 

B. Entity Accounts Subject to Review. A Preexisting Entity 

Account that has an account balance or value that exceeds $250,000 as 

of June 30, 2014, and a Preexisting Entity Account that does not exceed 

$250,000 as of June 30, 2014 but the account balance or value of which 

exceeds $1,000,000 as of the last day of 2015 or any subsequent 

calendar year, must be reviewed in accordance with the procedures set 

forth in paragraph D of this section. 

C. Entity Accounts With Respect to Which Reporting Is 

Required. With respect to Preexisting Entity Accounts described in 

paragraph B of this section, only accounts that are held by one or more 

Entities that are Specified U.S. Persons, or by Passive NFFEs with one 

or more Controlling Persons who are U.S. citizens or residents, shall be 

treated as U.S. Reportable Accounts. In addition, accounts held by 

Nonparticipating Financial Institutions shall be treated as accounts for 

which aggregate payments as described in subparagraph 1(b) of Article 

4 of the Agreement are reported to the Thai 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 Thai 

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 Nonparticipating Financial 

Institutions:

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

Person.

a) Review information maintained for regulatory or 

customer relationship purposes (including information 

collected pursuant to AML/KYC Procedures) to determine 

whether the information indicates that the Account Holder

is a U.S. Person. For this purpose, information indicating 

that the Account Holder is a U.S. Person includes a U.S. 

place of incorporation or organization, or a U.S. address.

b) If the information indicates that the Account Holder

is a U.S. Person, the Reporting Thai Financial Institution 

must treat the account as a U.S. Reportable Account unless 
Annex I – 13

it obtains a self-certification from the Account Holder

(which may be on an IRS Form W-8 or W-9, or a similar 

agreed form), or reasonably determines based on 

information in its possession or that is publicly available, 

that the Account Holder is not a Specified U.S. Person.

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

Institution.

a) Review information maintained for regulatory or 

customer relationship purposes (including information 

collected pursuant to AML/KYC Procedures) to determine 

whether the information indicates that the Account Holder

is a Financial Institution.

b) If the information indicates that the Account Holder

is a Financial Institution, or the Reporting Thai Financial

Institution verifies the Account Holder’s Global 

Intermediary Identification Number on the published IRS 

FFI list, then the account is not a U.S. Reportable Account. 

3. Determine Whether a Financial Institution Is a 

Nonparticipating Financial Institution Payments to Which 

Are Subject to Aggregate Reporting Under Subparagraph 

1(b) of Article 4 of the Agreement.

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

Reporting Thai Financial Institution may determine that the 

Account Holder is a Thai Financial Institution or other

Partner Jurisdiction Financial Institution if the Reporting 

Thai Financial Institution reasonably determines that the 

Account Holder has such status on the basis of the Account 

Holder’s Global Intermediary Identification Number on the 

published IRS FFI list or other information that is publicly 

available or in the possession of the Reporting Thai 

Financial Institution, as applicable. In such case, no 

further review, identification, or reporting is required with 

respect to the account.

b) If the Account Holder is a Thai Financial Institution 

or other Partner Jurisdiction Financial Institution treated by 

the IRS as a Nonparticipating Financial Institution, then 

the account is not a U.S. Reportable Account, but payments 
Annex I – 14

to the Account Holder must be reported as contemplated in

subparagraph 1(b) of Article 4 of the Agreement.

c) If the Account Holder is not a Thai Financial

Institution or other Partner Jurisdiction Financial 

Institution, then the Reporting Thai Financial Institution 

must treat the Account Holder as a Nonparticipating 

Financial Institution payments to which are reportable 

under subparagraph 1(b) of Article 4 of the Agreement, 

unless the Reporting Thai Financial Institution:

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

an IRS Form W-8 or similar agreed form) from the 

Account Holder that it is a certified deemedcompliant FFI, or an exempt beneficial owner, as 

those terms are defined in relevant U.S. Treasury 

Regulations; or

(2) In the case of a participating FFI or registered 

deemed-compliant FFI, verifies the Account 

Holder’s Global Intermediary Identification Number

on the 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 Thai Financial

Institution must identify (i) whether the Account Holder has 

Controlling Persons, (ii) whether the Account Holder is a Passive 

NFFE, and (iii) whether any of the Controlling Persons of the 

Account Holder is a U.S. citizen or resident. In making these 

determinations the Reporting Thai Financial Institution must 

follow the guidance in subparagraphs D(4)(a) through D(4)(d) of 

this section in the order most appropriate under the 

circumstances.

a) For purposes of determining the Controlling Persons 

of an Account Holder, a Reporting Thai Financial

Institution may rely on information collected and 

maintained pursuant to AML/KYC Procedures.

b) For purposes of determining whether the Account 

Holder is a Passive NFFE, the Reporting Thai Financial

Institution must obtain a self-certification (which may be 
Annex I – 15

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

from the Account Holder to establish its status, unless it 

has information in its possession or that is publicly 

available, based on which it can reasonably determine that 

the Account Holder is an Active NFFE.

c) For purposes of determining whether a Controlling 

Person of a Passive NFFE is a U.S. citizen or resident for 

tax purposes, a Reporting Thai 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 or value that does 

not exceed $1,000,000; or

(2) A self-certification (which may be on an IRS 

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

the Account Holder or such Controlling Person in 

the case of a Preexisting Entity Account held by one 

or more NFFEs with an account balance or value 

that exceeds $1,000,000. 

d) If any Controlling Person of a Passive NFFE is a 

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

U.S. Reportable Account.

E. Timing of Review and Additional Procedures Applicable to 

Preexisting Entity Accounts.

1. Review of Preexisting Entity Accounts with an account 

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

be completed by June 30, 2016.

2. Review of Preexisting Entity Accounts with an account

balance or value that does not exceed $250,000 as of June 30, 

2014, but exceeds $1,000,000 as of December 31 of 2015 or any

subsequent year, must be completed within six months after the

last day of the calendar year in which the account balance or 

value exceeds $1,000,000.

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

Preexisting Entity Account that causes the Reporting Thai 
Annex I – 16

Financial Institution to know, or have reason to know, that the 

self-certification or other documentation associated with an 

account is incorrect or unreliable, the Reporting Thai Financial

Institution must redetermine 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 for 

purposes of identifying U.S. Reportable Accounts and accounts held by 

Nonparticipating Financial Institutions among Financial Accounts held by 

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

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

Reported. Unless the Reporting Thai Financial Institution elects 

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

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

implementing rules in Thailand provide for such election, a credit card 

account or a revolving credit facility treated as a New Entity Account is 

not required to be reviewed, identified, or reported, provided that the 

Reporting Thai Financial Institution maintaining such account 

implements policies and procedures to prevent an account balance owed 

to the Account Holder that exceeds $50,000.

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

Accounts not described in paragraph A of this section, the Reporting 

Thai Financial Institution must determine whether the Account Holder 

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

Partner Jurisdiction Financial Institution; (iii) a participating FFI, a 

deemed-compliant FFI, or an exempt beneficial owner, as those terms 

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

NFFE or Passive NFFE. 

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

Thai Financial Institution may determine that the Account Holder

is an Active NFFE, a Thai Financial Institution, or other Partner 

Jurisdiction Financial Institution if the Reporting Thai Financial

Institution reasonably determines that the Account Holder has 

such status on the basis of the Account Holder’s Global 

Intermediary Identification Number or other information that is 

publicly available or in the possession of the Reporting Thai 

Financial Institution, as applicable. 

2. If the Account Holder is a Thai Financial Institution or 

other Partner Jurisdiction Financial Institution treated by the IRS 
Annex I – 17

as a Nonparticipating Financial Institution, then the account is not 

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

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

4 of the Agreement.

3. In all other cases, a Reporting Thai Financial Institution 

must obtain a self-certification from the Account Holder to 

establish the Account Holder’s status. Based on the selfcertification, the following rules apply:

 

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

the Reporting Thai Financial Institution must treat the 

account as a U.S. Reportable Account.

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

Reporting Thai Financial Institution must identify the 

Controlling Persons as determined under AML/KYC 

Procedures, and must determine whether any such person 

is a U.S. citizen or resident on the basis of a selfcertification from the Account Holder or such person. If 

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

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

Reportable Account.

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

a Specified U.S. Person; (ii) subject to subparagraph 

B(3)(d) of this section, a Thai Financial Institution or other 

Partner Jurisdiction Financial Institution; (iii) a 

participating FFI, a deemed-compliant FFI, or an exempt 

beneficial owner, as those terms are defined in relevant 

U.S. Treasury Regulations; (iv) an Active NFFE; or (v) a 

Passive NFFE none of the Controlling Persons of which is 

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

Reportable Account, and no reporting is required with 

respect to the account.

d) If the Account Holder is a Nonparticipating 

Financial Institution (including a Thai Financial Institution 

or other Partner Jurisdiction Financial Institution treated by 

the IRS as a Nonparticipating Financial Institution), then 

the account is not a U.S. Reportable Account, but payments 

to the Account Holder must be reported as contemplated in 

subparagraph 1(b) of Article 4 of the Agreement.
Annex I – 18

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

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

documentary evidence is incorrect or unreliable.

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

Annex I.

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

customer due diligence procedures of a Reporting Thai 

Financial Institution pursuant to the anti-money laundering or 

similar requirements of Thailand to which such Reporting 

Thai Financial Institution is subject. 

2. NFFE. An “NFFE” means any Non-U.S. Entity that is not an 

FFI as defined in relevant U.S. Treasury Regulations or is an 

Entity described in subparagraph B(4)(j) of this section, and 

also includes any Non-U.S. Entity that is established in

Thailand or another Partner Jurisdiction and that is not a 

Financial Institution.

3. Passive NFFE. A “Passive NFFE” means any NFFE that is 

not (i) an Active NFFE, or (ii) a withholding foreign 

partnership or withholding foreign trust pursuant to relevant 

U.S. Treasury Regulations.

4. Active NFFE. An “Active NFFE” means any NFFE that 

meets any of the following criteria:

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

the preceding calendar year or other appropriate 

reporting period is passive income and less than 50 

percent of the assets held by the NFFE during the 

preceding calendar year or other appropriate reporting 

period are assets that produce or are held for the 

production of passive income;

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

established securities market or the NFFE is a Related 
Annex I – 19

Entity of an Entity the stock of which is regularly traded 

on an established securities market;

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

owners of the payee are bona fide residents of that U.S. 

Territory;

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

government), a political subdivision of such

government (which, for the avoidance of doubt, 

includes a state, province, county, or municipality), or a 

public body performing a function of such government 

or a political subdivision thereof, a government of a 

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

central bank of issue, or an Entity wholly owned by one 

or more of the foregoing; 

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

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

providing financing and services to, one or more 

subsidiaries that engage in trades or businesses other 

than the business of a Financial Institution, except that 

an entity shall not qualify for NFFE status if the entity

functions (or holds itself out) as an investment fund, 

such as a private equity fund, venture capital fund, 

leveraged buyout fund, or any investment vehicle 

whose purpose is to acquire or fund companies and then 

hold interests in those companies as capital assets for 

investment purposes;

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

prior operating history, but is investing capital into 

assets with the intent to operate a business other than 

that of a Financial Institution, provided that the NFFE 

shall not qualify for this exception after the date that is 

24 months after the date of the initial organization of 

the NFFE;

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

five years, and is in the process of liquidating its assets 

or is reorganizing with the intent to continue or 

recommence operations in a business other than that of 

a Financial Institution;
Annex I – 20

h) The NFFE primarily engages in financing and hedging 

transactions with, or for, Related Entities that are not 

Financial Institutions, and does not provide financing or 

hedging services to any Entity that is not a Related 

Entity, provided that the group of any such Related 

Entities is primarily engaged in a business other than 

that of a Financial Institution;

i) The NFFE is an “excepted NFFE” as described in

relevant U.S. Treasury Regulations; or

j) The NFFE meets all of the following requirements:

i. It is established and operated in its jurisdiction of 

residence exclusively for religious, charitable, 

scientific, artistic, cultural, athletic, or educational 

purposes; or it is established and operated in its 

jurisdiction of residence and it is a professional 

organization, business league, chamber of 

commerce, labor organization, agricultural or 

horticultural organization, civic league or an 

organization operated exclusively for the 

promotion of social welfare;

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

residence; 

iii. It has no shareholders or members who have a 

proprietary or beneficial interest in its income or 

assets;

iv. The applicable laws of the NFFE’s jurisdiction of 

residence or the NFFE’s formation documents do 

not permit any income or assets of the NFFE to be 

distributed to, or applied for the benefit of, a 

private person or non-charitable Entity other than 

pursuant to the conduct of the NFFE’s charitable 

activities, or as payment of reasonable 

compensation for services rendered, or as payment 

representing the fair market value of property 

which the NFFE has purchased; and

v. The applicable laws of the NFFE’s jurisdiction of 

residence or the NFFE’s formation documents 

require that, upon the NFFE’s liquidation or 
Annex I – 21

dissolution, all of its assets be distributed to a 

governmental entity or other non-profit 

organization, or escheat to the government of the 

NFFE’s jurisdiction of residence or any political

subdivision thereof.

5. Preexisting Account. A “Preexisting Account” means a 

Financial Account maintained by a Reporting Financial 

Institution as of June 30, 2014.

C. Account Balance Aggregation and Currency Translation 

Rules.

1. Aggregation of Individual Accounts. For purposes of 

determining the aggregate balance or value of Financial Accounts 

held by an individual, a Reporting Thai Financial Institution is 

required to aggregate all Financial Accounts maintained by the 

Reporting Thai Financial Institution, or by a Related Entity, but 

only to the extent that the Reporting Thai Financial Institution’s 

computerized systems link the Financial Accounts by reference to 

a data element such as client number or taxpayer identification 

number, and allow account balances or values to be aggregated. 

Each holder of a jointly held Financial Account shall be attributed 

the entire balance or value of the jointly held Financial Account 

for purposes of applying the aggregation requirements described 

in this paragraph 1.

2. Aggregation of Entity Accounts. For purposes of 

determining the aggregate balance or value of Financial Accounts 

held by an Entity, a Reporting Thai Financial Institution is 

required to take into account all Financial Accounts that are 

maintained by the Reporting Thai Financial Institution, or by a 

Related Entity, but only to the extent that the Reporting Thai 

Financial Institution’s computerized systems link the Financial 

Accounts by reference to a data element such as client number or 

taxpayer identification number, and allow account balances or 

values to be aggregated.

3. Special Aggregation Rule Applicable to Relationship 

Managers. For purposes of determining the aggregate balance or 

value of Financial Accounts held by a person to determine 

whether a Financial Account is a High Value Account, a 

Reporting Thai Financial Institution is also required, in the case 

of any Financial Accounts that a relationship manager knows, or 
Annex I – 22

has reason to know, are directly or indirectly owned, controlled, 

or established (other than in a fiduciary capacity) by the same 

person, to aggregate all such accounts.

4. Currency Translation Rule. For purposes of determining 

the balance or value of Financial Accounts denominated in a 

currency other than the U.S. dollar, a Reporting Thai Financial

Institution must convert the U.S. dollar threshold amounts 

described in this Annex I into such currency using a published 

spot rate determined as of the last day of the calendar year 

preceding the year in which the Reporting Thai Financial

Institution is determining the balance or value.

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

acceptable documentary evidence includes any of the following:

1. A certificate of residence issued by an authorized 

government body (for example, a government or agency thereof, 

or a municipality) of the jurisdiction in which the payee claims to 

be a resident.

2. With respect to an individual, any valid identification 

issued by an authorized government body (for example, a 

government or agency thereof, or a municipality), that includes 

the individual’s name and is typically used for identification 

purposes.

3. With respect to an Entity, any official documentation 

issued by an authorized government body (for example, a 

government or agency thereof, or a municipality) that includes 

the name of the Entity and either the address of its principal 

office in the jurisdiction (or U.S. Territory) in which it claims to 

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

Entity was incorporated or organized.

4. With respect to a Financial Account maintained in a 

jurisdiction with anti-money laundering rules that have been 

approved by the IRS in connection with a 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.
Annex I – 23

5. Any financial statement, third-party credit report, 

bankruptcy filing, or U.S. Securities and Exchange Commission 

report.

E. Alternative Procedures for Financial Accounts Held by 

Individual Beneficiaries of a Cash Value Insurance Contract. A 

Reporting Thai Financial Institution may presume that an individual

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

receiving a death benefit is not a Specified U.S. Person and may treat 

such Financial Account as other than a U.S. Reportable Account unless 

the Reporting Thai Financial Institution has actual knowledge, or reason 

to know, that the beneficiary is a Specified U.S. Person. A Reporting 

Thai Financial Institution has reason to know that a beneficiary of a 

Cash Value Insurance Contract is a Specified U.S. Person if the 

information collected by the Reporting Thai Financial Institution and 

associated with the beneficiary contains U.S. indicia as described in 

subparagraph (B)(1) of section II of this Annex I. If a Reporting Thai 

Financial Institution has actual knowledge, or reason to know, that the 

beneficiary is a Specified U.S. Person, the Reporting Thai Financial

Institution must follow the procedures in subparagraph B(3) of section 

II of this Annex I.

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

made under paragraph C of section I of this Annex I, Thailand may 

permit Reporting Thai Financial Institutions to rely on due diligence 

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

U.S. Treasury Regulations.

G. Alternative Procedures for New Accounts Opened Prior to 

Entry Into Force of this Agreement.

1. Applicability. If Thailand has provided a written notice to 

the United States prior to entry into force of this Agreement that, 

as of July 1, 2014, Thailand lacked the legal authority to require 

Reporting Thai Financial Institutions either: (i) to require 

Account Holders of New Individual Accounts to provide the selfcertification specified in section III of this Annex I, or (ii) to 

perform all the due diligence procedures related to New Entity 

Accounts specified in section V of this Annex I, then Reporting 

Thai Financial Institutions may apply the alternative procedures 

described in subparagraph G(2) of this section, as applicable, to 

such New Accounts, in lieu of the procedures otherwise required 

under this Annex I. The alternative procedures described in 

subparagraph G(2) of this section shall be available only for those 
Annex I – 24

New Individual Accounts or New Entity Accounts, as applicable, 

opened prior to the earlier of: (i) the date Thailand has the ability 

to compel Reporting Thai Financial Institutions to comply with 

the due diligence procedures described in section III or section V 

of this Annex I, as applicable, which date Thailand shall inform 

the United States of in writing by the date of entry into force of 

this Agreement, or (ii) the date of entry into force of this 

Agreement. If the alternative procedures for New Entity 

Accounts opened on or after July 1, 2014, and before January 1, 

2015, described in paragraph H of this section are applied with 

respect to all New Entity Accounts or a clearly identified group 

of such accounts, the alternative procedures described in this 

paragraph G may not be applied with respect to such New Entity 

Accounts. For all other New Accounts, Reporting Thai Financial

Institutions must apply the due diligence procedures described in 

section III or section V of this Annex I, as applicable, to 

determine if the account is a U.S. Reportable Account or an 

account held by a Nonparticipating Financial Institution.

2. Alternative Procedures. 

a) Within one year after the date of entry into force of 

this Agreement, Reporting Thai Financial Institutions 

must: (i) with respect to a New Individual Account 

described in subparagraph G(1) of this section, request the 

self-certification specified in section III of this Annex I and 

confirm the reasonableness of such self-certification 

consistent with the procedures described in section III of 

this Annex I, and (ii) with respect to a New Entity Account 

described in subparagraph G(1) of this section, perform the 

due diligence procedures specified in section V of this 

Annex I and request information as necessary to document 

the account, including any self-certification, required by 

section V of this Annex I. 

b) Thailand must report on any New Account that is 

identified pursuant to subparagraph G(2)(a) of this section 

as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, by the 

date that is the later of: (i) September 30 next following the 

date that the account is identified as a U.S. Reportable 

Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, or (ii) 90 days after the 

account is identified as a U.S. Reportable Account or as an 
Annex I – 25

account held by a Nonparticipating Financial Institution, as 

applicable. The information required to be reported with 

respect to such a New Account is any information that 

would have been reportable under this Agreement if the 

New Account had been identified as a U.S. Reportable 

Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, as of the date the 

account was opened.

c) By the date that is one year after the date of entry 

into force of this Agreement, Reporting Thai Financial

Institutions must close any New Account described in 

subparagraph G(1) of this section for which it was unable 

to collect the required self-certification or other 

documentation pursuant to the procedures described in 

subparagraph G(2)(a) of this section. In addition, by the

date that is one year after the date of entry into force of this 

Agreement, Reporting Thai Financial Institutions must: (i) 

with respect to such closed accounts that prior to such 

closure were New Individual Accounts (without regard to 

whether such accounts were High Value Accounts), 

perform the due diligence procedures specified in 

paragraph D of section II of this Annex I, or (ii) with 

respect to such closed accounts that prior to such closure 

were New Entity Accounts, perform the due diligence 

procedures specified in section IV of this Annex I.

d) Thailand must report on any closed account that is 

identified pursuant to subparagraph G(2)(c) of this section 

as a U.S. Reportable Account or as an account held by a 

Nonparticipating Financial Institution, as applicable, by the 

date that is the later of: (i) September 30 next following the 

date that the account is identified as a U.S. Reportable 

Account or as an account held by a Nonparticipating 

Financial Institution, as applicable, or (ii) 90 days after the 

account is identified as a U.S. Reportable Account or as an 

account held by a Nonparticipating Financial Institution, as 

applicable. The information required to be reported for 

such a closed account is any information that would have 

been reportable under this Agreement if the account had 

been identified as a U.S. Reportable Account or as an 

account held by a Nonparticipating Financial Institution, as 

applicable, as of the date the account was opened.
Annex I – 26

H. Alternative Procedures for New Entity Accounts Opened on 

or after July 1, 2014, and before January 1, 2015. For New Entity 

Accounts opened on or after July 1, 2014, and before January 1, 2015, 

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

respect to any clearly identified group of such accounts, Thailand may 

permit Reporting Thai Financial Institutions to treat such accounts as 

Preexisting Entity Accounts and apply the due diligence procedures 

related to Preexisting Entity Accounts specified in section IV of this 

Annex I in lieu of the due diligence procedures specified in section V of 

this Annex I. In this case, the due diligence procedures of section IV of 

this Annex I must be applied without regard to the account balance or 

value threshold specified in paragraph A of section IV of this Annex I.
Annex II – 1

ANNEX II

The following Entities shall be treated as exempt beneficial owners or 

deemed-compliant FFIs, as the case may be, and the following accounts are 

excluded from the definition of Financial Accounts.

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

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

include additional Entities and accounts 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 and accounts described in this Annex II as of the date of signature of 

the Agreement; or (2) to remove Entities and accounts that, due to changes in 

circumstances, no longer present a low risk of being used by U.S. Persons to 

evade U.S. tax. Any such addition or removal shall be effective on the date of 

signature of the mutual decision, unless otherwise provided therein. 

Procedures for reaching such a mutual decision may be included in the mutual 

agreement or arrangement described in paragraph 6 of Article 3 of the 

Agreement.

I. Exempt Beneficial Owners other than Funds. The following Entities 

shall be treated as Non-Reporting Thai Financial Institutions and as exempt 

beneficial owners for purposes of sections 1471 and 1472 of the U.S. 

Internal Revenue Code, other than with respect to a payment that is 

derived from an obligation held in connection with a commercial financial 

activity of a type engaged in by a Specified Insurance Company, Custodial 

Institution, or Depository Institution.

A. Governmental Entity. The government of Thailand, any political 

subdivision of Thailand (which, for the avoidance of doubt, includes a 

state, province, county, or municipality), or any wholly owned agency 

or instrumentality of Thailand or any one or more of the foregoing 

(each, a “Thai Governmental Entity”). This category is comprised of

the integral parts, controlled entities, and political subdivisions of 

Thailand.

1. An integral part of Thailand means any person, organization, 

agency, bureau, fund, instrumentality, or other body, however 

designated, that constitutes a governing authority of Thailand. The 

net earnings of the governing authority must be credited to its own 

account or to other accounts of Thailand, with no portion inuring to 

the benefit of any private person. An integral part does not include 

any individual who is a sovereign, official, or administrator acting in 

a private or personal capacity. 
Annex II – 2

2. A controlled entity means an Entity that is separate in form from 

Thailand or that otherwise constitutes a separate juridical entity, 

provided that:

a) The Entity is wholly owned and controlled by one or more Thai

Governmental Entities directly or through one or more controlled 

entities; 

b) The Entity’s net earnings are credited to its own account or to the 

accounts of one or more Thai Governmental Entities, with no 

portion of its income inuring to the benefit of any private person; 

and 

c) The Entity’s assets vest in one or more Thai Governmental 

Entities upon dissolution. 

3. Income does not inure to the benefit of private personsif such 

persons are the intended beneficiaries of a governmental program, 

and the program activities are performed for the general public with 

respect to the common welfare or relate to the administration of 

some phase of government. Notwithstanding the foregoing, 

however, income is considered to inure to the benefit of private 

persons if the income is derived from the use of a governmental 

entity to conduct a commercial business, such as a commercial 

banking business, that provides financial services to private persons.

B. International Organization. Any international organization or wholly 

owned agency or instrumentality thereof. This category includes any 

intergovernmental organization (including a supranational organization)

(1) that is comprised primarily of non-U.S. governments; (2) that has in 

effect a headquarters agreement with Thailand; and (3) the income of 

which does not inure to the benefit of private persons.

C. Central Bank. An institution that is by law or government sanction the 

principal authority, other than the government of Thailand itself, issuing 

instruments intended to circulate as currency. Such an institution may 

include an instrumentality that is separate from the government of 

Thailand, whether or not owned in whole or in part by Thailand.

II. Funds that Qualify as Exempt Beneficial Owners. The following 

Entities shall be treated as Non-Reporting Thai Financial Institutions and 

as exempt beneficial owners for purposes of sections 1471 and 1472 of the 

U.S. Internal Revenue Code.
Annex II – 3

A. Treaty-Qualified Retirement Fund. A fund established in Thailand, 

provided that the fund is entitled to benefits under an income tax treaty 

between Thailand and the United States on income that it derives from 

sources within the United States (or would be entitled to such benefits if 

it derived any such income) as a resident of Thailand that satisfies any 

applicable limitation on benefits requirement, and is operated 

principally to administer or provide pension or retirement benefits.

B. Broad Participation Retirement Fund. A fund established in 

Thailand to provide retirement, disability, or death benefits, or any 

combination thereof, to beneficiaries that are current or former 

employees (or persons designated by such employees) of one or more

employers in consideration for services rendered, provided that the 

fund:

1. Does not have a single beneficiary with a right to more than five 

percent of the fund’s assets; 

2. Is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in 

Thailand; and 

3. Satisfies at least one of the following requirements:

a) The fund is generally exempt from tax in Thailand on investment 

income under the laws of Thailand due to its status as a 

retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions 

(other than transfers of assets from other plans described in 

paragraphs A through D of this section or from retirement and 

pension accounts described in subparagraph A(1) of section V of 

this Annex II) from the sponsoring employers; 

c) Distributions or withdrawals from the fund are allowed only upon 

the occurrence of specified events related to retirement, 

disability, or death (except rollover distributions to other 

retirement funds described in paragraphs A through D of this 

section or retirement and pension accounts described in 

subparagraph A(1) of section V of this Annex II), or penalties 

apply to distributions or withdrawals made before such specified 

events; or
Annex II – 4

d) Contributions (other than certain permitted make-up 

contributions) by employees to the fund are limited by reference 

to earned income of the employee or may not exceed $50,000 

annually, applying the rules set forth in Annex I for account 

aggregation and currency translation.

C. Narrow Participation Retirement Fund. A fund established in 

Thailand to provide retirement, disability, or death benefits to 

beneficiaries that are current or former employees (or persons 

designated by such employees) of one or more employers in 

consideration for services rendered, provided that:

1. The fund has fewer than 50 participants; 

2. The fund is sponsored by one or more employers that are not 

Investment Entities or Passive NFFEs; 

3. The employee and employer contributions to the fund (other than 

transfers of assets from treaty-qualified retirement funds described in 

paragraph A of this section or retirement and pension accounts 

described in subparagraph A(1) of section V of this Annex II) are 

limited by reference to earned income and compensation of the 

employee, respectively; 

4. Participants that are not residents of Thailand are not entitled to 

more than 20 percent of the fund’s assets; and 

5. The fund is subject to government regulation and provides annual 

information reporting about its beneficiaries to the relevant tax 

authorities in Thailand.

D. Pension Fund of an Exempt Beneficial Owner. A fund established in 

Thailand by an exempt beneficial owner to provide retirement, 

disability, or death benefits to beneficiaries or participants that are 

current or former employees of the exempt beneficial owner (or persons 

designated by such employees), or that are not current or former 

employees, if the benefits provided to such beneficiaries or participants 

are in consideration of personal services performed for the exempt 

beneficial owner.

E. Investment Entity Wholly Owned by Exempt Beneficial Owners. 

An Entity that is a Thai Financial Institution solely because it is an 

Investment Entity, provided that each direct holder of an Equity Interest 

in the Entity is an exempt beneficial owner, and each direct holder of a 
Annex II – 5

debt interest in such Entity is either a Depository Institution (with 

respect to a loan made to such Entity) or an exempt beneficial owner.

F. Thai Provident Fund. A Provident Fund established in Thailand to 

provide retirement, disability, or death benefits, or any combination 

thereof, to beneficiaries that are current or former employees (or 

persons designated by such employees) of one or more employers in 

consideration for services rendered, provided that the fund:

1. Does not have a single beneficiary with a right to more than five 

percent of the fund’s assets; 

2. Is subject to government regulation and provides information 

reporting about its beneficiaries to the relevant tax authorities in 

Thailand; and 

3. Satisfies at least one of the following requirements: 

a) The fund is generally exempt from tax in Thailand on investment 

income under the laws of Thailand due to its status as a 

retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions 

(other than transfers of assets from other plans described in 

paragraphs A through D of this section or from retirement and 

pension accounts described in subparagraph A(1) of section V of 

this Annex II) from the sponsoring employers; 

c) Distributions or withdrawals from the fund are allowed only upon 

the occurrence of specified events related to retirement, 

disability, or death (except rollover distributions to other 

retirement funds described in paragraphs A through D of this 

section or retirement and pension accounts described in 

subparagraph A(1) of section V of this Annex II), or penalties 

apply to distributions or withdrawals made before such specified 

events; or

d) Contributions (other than certain permitted make-up 

contributions) by employees to the fund are limited by reference 

to earned income of the employee or may not exceed $50,000 

annually, applying the rules set forth in Annex I for account 

aggregation and currency translation.
Annex II – 6

G. National Savings Fund. A National Savings Fund established in 

Thailand under the National Savings Fund Act B.E. 2554 (2011) to 

provide retirement, disability, or death benefits, or any combination 

thereof, to beneficiaries, provided that the fund:

1. Does not have a single beneficiary with a right to more than five 

percent of the fund’s assets; 

2. Is government-owned and provides information reporting about its 

beneficiaries to the relevant authorities in Thailand; and 

3. Satisfies at least one of the following requirements: 

a) The fund is generally exempt from tax in Thailand on investment 

income under the laws of Thailand due to its status as a 

retirement or pension plan; 

b) The fund receives at least 50 percent of its total contributions 

(other than transfers of assets from other plans described in 

paragraphs A through D of this section or from retirement and 

pension accounts described in subparagraph A(1) of section V of 

this Annex II) from the sponsoring employers; 

c) Distributions or withdrawals from the fund are allowed only upon 

the occurrence of specified events related to retirement, 

disability, or death (except rollover distributions to other 

retirement funds described in paragraphs A through D of this 

section or retirement and pension accounts described in 

subparagraph A(1) of section V of this Annex II), or penalties 

apply to distributions or withdrawals made before such specified 

events; or

d) Contributions (other than certain permitted make-up 

contributions) by employees to the fund are limited by reference 

to earned income of the employee or may not exceed $50,000 

annually, applying the rules set forth in Annex I for account 

aggregation and currency translation.

III. Small or Limited Scope Financial Institutions that Qualify as DeemedCompliant FFIs. The following Financial Institutions are Non-Reporting 

Thai Financial Institutions that shall be treated as deemed-compliant FFIs 

for purposes of section 1471 of the U.S. Internal Revenue Code.
Annex II – 7

A. Financial Institution with a Local Client Base. A Financial 

Institution satisfying the following requirements:

1. The Financial Institution must be licensed (or registered) and 

regulated as a financial institution under the laws of Thailand; 

2. The Financial Institution must have no fixed place of business 

outside of Thailand. For this purpose, a fixed place of business does 

not include a location that is not advertised to the public and from 

which the Financial Institution performs solely administrative 

support functions;

3. The Financial Institution must not solicit customers or Account 

Holders outside Thailand. For this purpose, a Financial Institution

shall not be considered to have solicited customers or Account 

Holders outside Thailand merely because the Financial Institution 

(a) operates a website, provided that the website does not 

specifically indicate that the Financial Institution provides Financial 

Accounts or services to nonresidents, and does not otherwise target 

or solicit U.S. customers or Account Holders, or (b) advertises in 

print media or on a radio or television station that is distributed or 

aired primarily within Thailand but is also incidentally distributed or 

aired in other countries, provided that the advertisement does not 

specifically indicate that the Financial Institution provides Financial 

Accounts or services to nonresidents, and does not otherwise target 

or solicit U.S. customers or Account Holders;

4. The Financial Institution must be required under the laws of 

Thailand to identify resident Account Holders for purposes of either 

information reporting or withholding of tax with respect to Financial 

Accounts held by residents or for purposes of satisfying Thailand’s 

AML due diligence requirements;

5. At least 98 percent of the Financial Accounts by value maintained by 

the Financial Institution must be held by residents (including 

residents that are Entities) of Thailand; 

6. Beginning on or before July 1, 2014, the Financial Institution must 

have policies and procedures, consistent with those set forth in 

Annex I, to prevent the Financial Institution from providing a 

Financial Account to any Nonparticipating Financial Institution and

to monitor whether the Financial Institution opens or maintains a 

Financial Account for any Specified U.S. Person who is not a 

resident of Thailand (including a U.S. Person that was a resident of 
Annex II – 8

Thailand when the Financial Account was opened but subsequently 

ceases to be a resident of Thailand) or any Passive NFFE with 

Controlling Persons who are U.S. residents or U.S. citizens who are 

not residents of Thailand; 

7. Such policies and procedures must provide that if any Financial 

Account held by a Specified U.S. Person who is not a resident of 

Thailand or by a Passive NFFE with Controlling Persons who are 

U.S. residents or U.S. citizens who are not residents of Thailand is 

identified, the Financial Institution must report such Financial 

Account as would be required if the Financial Institution were a 

Reporting Thai Financial Institution (including by following the 

applicable registration requirements on the IRS FATCA registration 

website) or close such Financial Account;

8. With respect to a Preexisting Account held by an individual who is 

not a resident of Thailand or by an Entity, the Financial Institution 

must review those Preexisting Accounts in accordance with the 

procedures set forth in Annex I applicable to Preexisting Accounts to 

identify any U.S. Reportable Account or Financial Account held by 

a Nonparticipating Financial Institution, and must report such 

Financial Account as would be required if the Financial Institution 

were a Reporting Thai Financial Institution (including by following 

the applicable registration requirements on the IRS FATCA 

registration website) or close such Financial Account;

9. Each Related Entity of the Financial Institution that is a Financial 

Institution must be incorporated or organized in Thailand and, with 

the exception of any Related Entity that is a retirement fund 

described in paragraphs A through D of section II of this Annex II, 

satisfy the requirements set forth in this paragraph A; and 

10.The Financial Institution must not have policies or practices that

discriminate against opening or maintaining Financial Accounts for

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

Thailand.

B. Local Bank. A Financial Institution satisfying the following 

requirements:

1. The Financial Institution operates solely as (and is licensed (or 

registered) and regulated under the laws of Thailand as) (a) a bank or 

(b) a credit union or similar cooperative credit organization that is 

operated without profit;
Annex II – 9

2. The Financial Institution’s business consists primarily of receiving 

deposits from and making loans to, with respect to a bank, unrelated 

retail customers and, with respect to a credit union or similar 

cooperative credit organization, members, provided that no member 

has a greater than five percent interest in such credit union or 

cooperative credit organization;

3. The Financial Institution satisfies the requirements set forth in 

subparagraphs A(2) and A(3) of this section, provided that, in 

addition to the limitations on the website described in subparagraph 

A(3) of this section, the website does not permit the opening of a 

Financial Account;

4. The Financial Institution does not have more than $175 million in 

assets on its balance sheet, and the Financial Institution and any 

Related Entities, taken together, do not have more than $500 million 

in total assets on their consolidated or combined balance sheets; and

5. Any Related Entity must be incorporated or organized in Thailand,

and any Related Entity that is a Financial Institution, with the 

exception of any Related Entity that is a retirement fund described 

in paragraphs A through D of section II of this Annex II or a 

Financial Institution with only low-value accounts described in 

paragraph C of this section, must satisfy the requirements set forth 

in this paragraph B. 

C. Financial Institution with Only Low-Value Accounts. A Thai 

Financial Institution satisfying the following requirements:

1. The Financial Institution is not an Investment Entity;

2. No Financial Account maintained by the Financial Institution or any 

Related Entity has a balance or value in excess of $50,000, applying 

the rules set forth in Annex I for account aggregation and currency 

translation; and 

3. The Financial Institution does not have more than $50 million in 

assets on its balance sheet, and the Financial Institution and any 

Related Entities, taken together, do not have more than $50 million 

in total assets on their consolidated or combined balance sheets. 

D. Qualified Credit Card Issuer. A Thai Financial Institution satisfying 

the following requirements:
Annex II – 10

1. The Financial Institution is a Financial Institution solely because it is 

an issuer of credit cards that accepts deposits only when a customer 

makes a payment in excess of a balance due with respect to the card 

and the overpayment is not immediately returned to the customer; 

and

2. Beginning on or before July 1, 2014, the Financial Institution

implements policies and procedures to either prevent a customer 

deposit in excess of $50,000, or to ensure that any customer deposit 

in excess of $50,000, in each case applying the rules set forth in 

Annex I for account aggregation and currency translation, is 

refunded to the customer within 60 days. For this purpose, a 

customer deposit does not refer to credit balances to the extent of 

disputed charges but does include credit balances resulting from 

merchandise returns.

IV. Investment Entities that Qualify as Deemed-Compliant FFIs and 

Other Special Rules. The Financial Institutions described in paragraphs A 

through E of this section are Non-Reporting Thai Financial Institutions that 

shall be treated as deemed-compliant FFIs for purposes of section 1471 of 

the U.S. Internal Revenue Code. In addition, paragraph F of this section 

provides special rules applicable to an Investment Entity. 

A. Trustee-Documented Trust. A trust established under the laws of 

Thailand to the extent that the trustee of the trust is a Reporting U.S. 

Financial Institution, Reporting Model 1 FFI, or Participating FFI and 

reports all information required to be reported pursuant to the

Agreement with respect to all U.S. Reportable Accounts of the trust.

B. Sponsored Investment Entity and Controlled Foreign Corporation. 

A Financial Institution described in subparagraph B(1) or B(2) of this 

section having a sponsoring entity that complies with the requirements 

of subparagraph B(3) of this section. 

1. A Financial Institution is a sponsored investment entity if (a) it is an 

Investment Entity established in Thailand that is not a qualified 

intermediary, withholding foreign partnership, or withholding 

foreign trust pursuant to relevant U.S. Treasury Regulations; and (b) 

an Entity has agreed with the Financial Institution to act as a 

sponsoring entity for the Financial Institution. 
Annex II – 11

2. A Financial Institution is a sponsored controlled foreign corporation 

if (a) the Financial Institution is a controlled foreign corporation1

organized under the laws of Thailand that is not a qualified 

intermediary, withholding foreign partnership, or withholding 

foreign trust pursuant to relevant U.S. Treasury Regulations; (b) the 

Financial Institution is wholly owned, directly or indirectly, by a 

Reporting U.S. Financial Institution that agrees to act, or requires an 

affiliate of the Financial Institution to act, as a sponsoring entity for 

the Financial Institution; and (c) the Financial Institution shares a 

common electronic account system with the sponsoring entity that 

enables the sponsoring entity to identify all Account Holders and 

payees of the Financial Institution and to access all account and 

customer information maintained by the Financial Institution

including, but not limited to, customer identification information, 

customer documentation, account balance, and all payments made to 

the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements:

a) The sponsoring entity is authorized to act on behalf of the 

Financial Institution (such as a fund manager, trustee, corporate 

director, or managing partner) to fulfill applicable registration 

requirements on the IRS FATCA registration website; 

b) The sponsoring entity has registered as a sponsoring entity with 

the IRS on the IRS FATCA registration website; 

c) If the sponsoring entity identifies any U.S. Reportable Accounts 

with respect to the Financial Institution, the sponsoring entity 

registers the Financial Institution pursuant to applicable 

registration requirements on the IRS FATCA registration website 

on or before the later of December 31, 2015 and the date that is 

90 days after such a U.S. Reportable Account is first identified; 

d) The sponsoring entity agrees to perform, on behalf of the 

Financial Institution, all due diligence, withholding, reporting, 

and other requirements that the Financial Institution would have 

 1 A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total 

combined voting power of all classes of stock of such corporation entitled to vote, or the total value of the 

stock of such corporation, is owned, or is considered as owned, by “United States shareholders” on any day 

during the taxable year of such foreign corporation. The term a “United States shareholder” means, with 

respect to any foreign corporation, a United States person who owns, or is considered as owning, 10 percent 

or more of the total combined voting power of all classes of stock entitled to vote of such foreign 

corporation.
Annex II – 12

been required to perform if it were a Reporting Thai Financial

Institution; 

e) The sponsoring entity identifies the Financial Institution and 

includes the identifying number of the Financial Institution 

(obtained by following applicable registration requirements on 

the IRS FATCA registration website) in all reporting completed 

on the Financial Institution’s behalf; and 

f) The sponsoring entity has not had its status as a sponsor revoked.

C. Sponsored, Closely Held Investment Vehicle. A Thai Financial

Institution satisfying the following requirements:

1. The Financial Institution is a Financial Institution solely because it is 

an Investment Entity and is not a qualified intermediary, withholding 

foreign partnership, or withholding foreign trust pursuant to relevant 

U.S. Treasury Regulations;

2. The sponsoring entity is a Reporting U.S. Financial Institution, 

Reporting Model 1 FFI, or Participating FFI, is authorized to act on 

behalf of the Financial Institution (such as a professional manager, 

trustee, or managing partner), and agrees to perform, on behalf of the 

Financial Institution, all due diligence, withholding, reporting, and 

other requirements that the Financial Institution would have been 

required to perform if it were a Reporting Thai Financial Institution;

3. The Financial Institution does not hold itself out as an investment 

vehicle for unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity 

Interests in the Financial Institution (disregarding debt interests 

owned by Participating FFIs and deemed-compliant FFIs and Equity 

Interests owned by an Entity if that Entity owns 100 percent of the 

Equity Interests in the Financial Institution and is itself a sponsored 

Financial Institution described in this paragraph C); and

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity with 

the IRS on the IRS FATCA registration website; 

b) The sponsoring entity agrees to perform, on behalf of the 

Financial Institution, all due diligence, withholding, reporting, 
Annex II – 13

and other requirements that the Financial Institution would have 

been required to perform if it were a Reporting Thai Financial

Institution and retains documentation collected with respect to the 

Financial Institution for a period of six years; 

c) The sponsoring entity identifies the Financial Institution in all 

reporting completed on the Financial Institution’s behalf; and 

d) The sponsoring entity has not had its status as a sponsor revoked. 

D. Investment Advisors and Investment Managers. An Investment 

Entity established in Thailand that is a Financial Institution solely 

because it (1) renders investment advice to, and acts on behalf of, or (2) 

manages portfolios for, and acts on behalf of, a customer for the 

purposes of investing, managing, or administering funds deposited in 

the name of the customer with a Financial Institution other than a 

Nonparticipating Financial Institution.

E. Collective Investment Vehicle. An Investment Entity established in 

Thailand that is regulated as a collective investment vehicle, provided 

that all of the interests in the collective investment vehicle (including 

debt interests in excess of $50,000) are held by or through one or more 

exempt beneficial owners, Active NFFEs described in subparagraph 

B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. 

Persons, or Financial Institutions that are not Nonparticipating Financial 

Institutions. 

F. Special Rules. The following rules apply to an Investment Entity: 

1. With respect to interests in an Investment Entity that is a collective 

investment vehicle described in paragraph E of this section, the 

reporting obligations of any Investment Entity (other than a 

Financial Institution through which interests in the collective 

investment vehicle are held) shall be deemed fulfilled.

2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is 

regulated as a collective investment vehicle, all of the interests in 

which (including debt interests in excess of $50,000) are held by 

or through one or more exempt beneficial owners, Active NFFEs 

described in subparagraph B(4) of section VI of Annex I, U.S. 

Persons that are not Specified U.S. Persons, or Financial 

Institutions that are not Nonparticipating Financial Institutions; or
Annex II – 14

b) An Investment Entity that is a qualified collective investment 

vehicle under relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is a Thai 

Financial Institution (other than a Financial Institution through 

which interests in the collective investment vehicle are held) shall be 

deemed fulfilled.

3. With respect to interests in an Investment Entity established in 

Thailand that is not described in paragraph E or subparagraph F(2) 

of this section, consistent with paragraph 3 of Article 5 of the 

Agreement, the reporting obligations of all other Investment Entities 

with respect to such interests shall be deemed fulfilled if the 

information required to be reported by the first-mentioned 

Investment Entity pursuant to the Agreement with respect to such 

interests is reported by such Investment Entity or another person.

4. An Investment Entity established in Thailand that is regulated as a 

collective investment vehicle shall not fail to qualify under 

paragraph E or subparagraph F(2) of this section, or otherwise as a 

deemed-compliant FFI, solely because the collective investment 

vehicle has issued physical shares in bearer form, provided that: 

a) The collective investment vehicle has not issued, and does not 

issue, any physical shares in bearer form after December 31, 

2012; 

b) The collective investment vehicle retires all such shares upon 

surrender; 

c) The collective investment vehicle (or a Reporting Thai Financial

Institution) performs the due diligence procedures set forth in 

Annex I and reports any information required to be reported with 

respect to any such shares when such shares are presented for 

redemption or other payment; and 

d) The collective investment vehicle has in place policies and 

procedures to ensure that such shares are redeemed or 

immobilized as soon as possible, and in any event prior to 

January 1, 2017.
Annex II – 15

V. Accounts Excluded from Financial Accounts. The following accounts 

are excluded from the definition of Financial Accounts and therefore shall 

not be treated as U.S. Reportable Accounts.

A. Certain Savings Accounts.

1. Retirement and Pension Account. A retirement or pension account 

maintained in Thailand that satisfies the following requirements

under the laws of Thailand.

a) The account is subject to regulation as a personal retirement 

account or is part of a registered or regulated retirement or 

pension plan for the provision of retirement or pension benefits 

(including disability or death benefits);

b) The account is tax-favored (i.e., contributions to the account that 

would otherwise be subject to tax under the laws of Thailand are 

deductible or excluded from the gross income of the account 

holder or taxed at a reduced rate, or taxation of investment 

income from the account is deferred or taxed at a reduced rate);

c) Annual information reporting is required to the tax authorities in 

Thailand with respect to the account;

d) Withdrawals are conditioned on reaching a specified retirement 

age, disability, or death, or penalties apply to withdrawals made 

before such specified events; and

e) Either (i) annual contributions are limited to $50,000 or less, or 

(ii) there is a maximum lifetime contribution limit to the account 

of $1,000,000 or less, in each case applying the rules set forth in 

Annex I for account aggregation and currency translation. 

2. Non-Retirement Savings Accounts. An account maintained in 

Thailand (other than an insurance or Annuity Contract) that satisfies

the following requirements under the laws of Thailand.

a) The account is subject to regulation as a savings vehicle for 

purposes other than for retirement;

b) The account is tax-favored (i.e., contributions to the account that 

would otherwise be subject to tax under the laws of Thailand are 

deductible or excluded from the gross income of the account 
Annex II – 16

holder or taxed at a reduced rate, or taxation of investment 

income from the account is deferred or taxed at a reduced rate);

c) Withdrawals are conditioned on meeting specific criteria related 

to the purpose of the savings account (for example, the provision 

of educational or medical benefits), or penalties apply to 

withdrawals made before such criteria are met; and

d) Annual contributions are limited to $50,000 or less, applying the 

rules set forth in Annex I for account aggregation and currency 

translation.

B. Certain Term Life Insurance Contracts. A life insurance contract 

maintained in Thailand with a coverage period that will end before the 

insured individual attains age 90, provided that the contract satisfies the 

following requirements: 

1. Periodic premiums, which do not decrease over time, are payable at 

least annually during the period the contract is in existence or until 

the insured attains age 90, whichever is shorter;

2. The contract has no contract value that any person can access (by 

withdrawal, loan, or otherwise) without terminating the contract;

3. The amount (other than a death benefit) payable upon cancellation or 

termination of the contract cannot exceed the aggregate premiums 

paid for the contract, less the sum of mortality, morbidity, and 

expense charges (whether or not actually imposed) for the period or 

periods of the contract’s existence and any amounts paid prior to the 

cancellation or termination of the contract; and

4. The contract is not held by a transferee for value.

C. Account Held By an Estate. An account maintained in Thailand that 

is held solely by an estate if the documentation for such account 

includes a copy of the deceased’s will or death certificate.

D. Escrow Accounts. An account maintained in Thailand established in 

connection with any of the following: 

1. A court order or judgment.

2. A sale, exchange, or lease of real or personal property, provided that 

the account satisfies the following requirements:
Annex II – 17

a) The account is funded solely with a down payment, earnest 

money, deposit in an amount appropriate to secure an obligation 

directly related to the transaction, or a similar payment, or is 

funded with a financial asset that is deposited in the account in 

connection with the sale, exchange, or lease of the property; 

b) The account is established and used solely to secure the 

obligation of the purchaser to pay the purchase price for the 

property, the seller to pay any contingent liability, or the lessor or 

lessee to pay for any damages relating to the leased property as 

agreed under the lease;

c) The assets of the account, including the income earned thereon, 

will be paid or otherwise distributed for the benefit of the 

purchaser, seller, lessor, or lessee (including to satisfy such 

person’s obligation) when the property is sold, exchanged, or 

surrendered, or the lease terminates;

d) The account is not a margin or similar account established in 

connection with a sale or exchange of a financial asset; and

e) The account is not associated with a credit card account. 

3. An obligation of a Financial Institution servicing a loan secured by

real property to set aside a portion of a payment solely to facilitate 

the payment of taxes or insurance related to the real property at a 

later time.

4. An obligation of a Financial Institution solely to facilitate the 

payment of taxes at a later time.

E. Partner Jurisdiction Accounts. An account maintained in Thailand

and excluded from the definition of Financial Account under an 

agreement between the United States and another Partner Jurisdiction to 

facilitate the implementation of FATCA, provided that such account is 

subject to the same requirements and oversight under the laws of such 

other Partner Jurisdiction as if such account were established in that 

Partner Jurisdiction and maintained by a Partner Jurisdiction Financial 

Institution in that Partner Jurisdiction.

F. Tax-Favored Life Annuity Product under the Life Insurance 

Act. A Tax-Favored Life Annuity Product under the Life Insurance Act 
Annex II – 18

B.E. 2535 (1992) maintained in Thailand that satisfies the following 

requirements under the laws of Thailand.

a) The account is subject to regulation as a personal retirement 

annuity product;

b) The account is tax-favored (i.e., contributions to the account that 

would otherwise be subject to tax under the laws of Thailand are 

deductible or excluded from the gross income of the account 

holder or taxed at a reduced rate, or taxation of investment 

income from the account is deferred or taxed at a reduced rate);

c) Information reporting by the insurance company to the Thai 

authorities occurs with respect to the account;

d) Withdrawals or payments under the Tax-Favored Life Annuity 

Product are conditioned on reaching a specified retirement age, 

disability, or death, or penalties apply to withdrawals made 

before such specified events; and

e) Annual contributions do not exceed $50,000 in any one year, 

applying the rules set forth in Annex I for account aggregation 

and currency translation. 

VI. Definitions. The following additional definitions shall apply to the 

descriptions above:

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a 

Financial Institution with respect to which a non-U.S. government or 

agency thereof agrees to obtain and exchange information pursuant to a 

Model 1 IGA, other than a Financial Institution treated as a 

Nonparticipating Financial Institution under the Model 1 IGA. For 

purposes of this definition, the term Model 1 IGA means an 

arrangement between the United States or the Treasury Department and 

a non-U.S. government or one or more agencies thereof to implement 

FATCA through reporting by Financial Institutions to such non-U.S.

government or agency thereof, followed by automatic exchange of such

reported information with the IRS. 

B. Participating FFI. The term Participating FFI means a Financial 

Institution that has agreed to comply with the requirements of an FFI 

Agreement, including a Financial Institution described in a Model 2 

IGA that has agreed to comply with the requirements of an FFI 
Annex II – 19

Agreement. The term Participating FFI also includes a qualified 

intermediary branch of a Reporting U.S. Financial Institution, unless 

such branch is a Reporting Model 1 FFI. For purposes of this 

definition, the term FFI Agreement means an agreement that sets forth 

the requirements for a Financial Institution to be treated as complying 

with the requirements of section 1471(b) of the U.S. Internal Revenue 

Code. In addition, for purposes of this definition, the term Model 2 

IGA means an arrangement between the United States or the Treasury 

Department and a non-U.S. government or one or more agencies thereof 

to facilitate the implementation of FATCA through reporting by 

Financial Institutions directly to the IRS in accordance with the 

requirements of an FFI Agreement, supplemented by the exchange of 

information between such non-U.S. government or agency thereof and 

the IRS.