Embassy of the United Stares ofAmerica

The Grand Duchy ofLuxembourg

May 20, 2009

Excellency,

I have the honor to refer to the Convention between the Government ofthe United

States of America and the Government ofthe Grand Duchy of Luxembourg for the

Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect

to taxes on Income and Capital, signed at Luxembourg, April 3, 1996, as amended

by the Protocol signed today (the "Convention") and to propose on behalf ofthe

Government ofthe United States the following understandings:

I. It is understood that the competent authority ofthe requested State shall provide

upon request by the competent authority ofthe requesting State information for the

purposes referred to in paragraph I of Article 28. Such information shall be

exchanged without regard to whether the requested State needs such information

for its own tax purposes or the conduct being investigated would constitute a crime

under the laws ofthe requested State ifit had occurred in the territory ofthe

requested State.

2. Pursuant to paragraph 5 of Article 28, it is understood that each Contracting

State shall ensure that its competent authority has the authority to obtain and

provide upon request:

a) information held by banks, other financial institutions, and any person acting in

an agency or fiduciary capacity including nominees and trustees;

b) information regarding the ownership of companies, partnerships, trusts,

foundations and other persons, including ownership information on all such

persons in an ownership chain; in the case oftrusts, infonnation on settlors,

trustees and beneficiaries; and in the case of foundations, information on founders,

members ofthe foundation council and beneficiaries; provided, however, that a

requested State is not obliged to provide information which is neither held by its

authorities nor in the possession or control of persons who are within its territorial

jurisdiction. For purposes ofthe preceding sentence, "authorities" includes all
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government agencies, political subdivisions, and local authorities. Further, this

Convention does not create an obligation on the Contracting States to obtain or

provide ownership information with respect to publicly traded companies or public

collective investment funds or schemes unless such information can be obtained

without giving rise to disproportionate difficulties.

3. The competent authority ofthe applicant State shall provide the following

information to the competent authority ofthe requested State when making a

request for information under the Convention to demonstrate the foreseeable

relevance ofthe information to the request:

(a) the identity ofthe person under examination or investigation;

(b) a statement ofthe information sought including its nature and the form in

which the applicant State wishes to receive the information from the requested

State;

(c) the tax purpose for which the infornlation is sought;

(d) grounds for believing that the information requested is held in the requested

State or is in the possession or control of a person within the jurisdiction ofthe

requested State;

(e) to the extent known, the name and address of any person believed to be in

possession ofthe requested information;

(I) a statement that the request is in conformity with the law and administrative

practices ofthe applicant State, that ifthe requested information was within the

jurisdiction ofthe applicant State then the competent authority ofthe applicant

State would be able to obtain the information under the laws ofthe applicant State

or in the normal course of administrative practice and that it is in conformity with

this Convention;

(g) a statement that the applicant State has pursued all means available in its own

territory to obtain the information, except those that would give rise to

disproportionate difficulties.
4. The competent authorities ofthe Contracting States will work together to

develop mutual procedures for the exchange of information, including, (i) with

ect to specific requests, the form for making a specific request, the time and

ner ofresponding to a request, and the possibility for declining a request, and

ther procedures or forms of assistance concerning the efficient exchange of

rmation.

e foregoing understandings meet with the approval ofthe Government ofthe

nd Duchy ofLuxembourg, I have the further honor to propose that this Note

your affirmative Note in reply shall constitute an agreement between our

ernments which shall become an integral part ofthe Convention on the date of

y into force ofthe Protocol.

ept, Your Excellency, the expression of my highest considerations.

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LE GOUVERNEMENT

DU GRAND-DUCHE DE LUXEMBOURG

Ministere des Finances

Le Ministre du Tresor et du Budget

Luxembourg, Ie 20 mai 2009

Excellence,

J'ai t'honneur d'accuser reception de votre lettre du 20 mai 2009, libellee comme suit:

"I have the honor to refer to the Convention between the Government of the United States of

America and the Government of the Grand Duchy of Luxembourg for the Avoidance of Double

Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income and Capital,

signed at Luxembourg, April 3, 1996, as amended by the Protocol signed today (the

"Convention") and to propose on behalf of the Government of the United States the following

understandings:

1, It is understood that the competent authority of the requested State shall provide upon request

by the competent authority of the requesting State information for the purposes referred to in

paragraph 1 of Article 28. Such information shall be exchanged without regard to whether the

requested State needs such information for its own tax purposes or the conduct being

investigated would constitute a crime under the laws of the requested State if it had occurred in

the territory of the requested State.

2. Pursuant to paragraph 5 of Article 28, it is understood that each Contracting State shall ensure

that its competent authority has the authority to obtain and provide upon request:

a) information held by banks, other financial institutions, and any person acting in an

agency or fiduciary capacity including nominees and trustees;

b) information regarding the ownership of companies, partnerships, trusts, foundations

and other persons, including ownership information on all such persons in an ownership

chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the

case of foundations, information on founders, members of the foundation council and

beneficiaries; provided, however, that a requested State is not obliged to provide

information which is neither held by its authorities nor in the possession or control of

persons who are within its territorial jurisdiction. For purposes of the preceding sentence,

"authorities" includes all government agencies, political subdivisions, and local

authorities. Further, this Convention does not create an obligation on the Contracting

States to obtain or provide ownership information with respect to publicly traded

companies or public collective investment funds or schemes unless such information can

be obtained without giving rise to disproportionate difficulties,

.I..

Son Excellence

Madame Ann Louise WAGNER

Ambassadeur des Etats-Unis d'Amerique

22, boulevard Emmanuel Servais

L-2535 LUXEMBOURG

I 7931luxellibourg
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3. The competent authority of the applicant State shall provide the following information to the

competent authority of the requested State when making a request for information under the

Convention to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the

applicant State wishes to receive the information from the requested State;

(c) the tax purpose for which the information is sought;

(d) grounds for believing that the information requested is held in the requested State or

is in the possession or control of a person within the jurisdiction of the requested State;

(e) to the extent known, the name and address of any person believed to be in

possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices

of the applicant State, that if the requested information was within the jurisdiction of the applicant

State then the competent authority of the applicant State would be able to obtain the information

under the laws of the applicant State or in the normal course of administrative practice and that it

is in conformity with this Convention;

(g) a statement that the applicant State has pursued all means available in its own

territory to obtain the information, except those that would give rise to disproportionate difficulties.

4. The competent authorities of the Contracting States will work together to develop mutual

procedures for the exchange of infonnation, including, (i) with respect to specific requests, the

form for making a specific request, the time and manner of responding to a request, and the

possibility for declining a request, and (ii) other procedures or forms of assistance concerning the

efficient exchange of information.

If the foregoing understandings meet with the approval of the Government of the Grand Duchy of

Luxembourg, I have the further honor to propose that this Note and your affirmative Note in reply shall

constitute an agreement between our Governments which shall become an integral part of the

Convention on the date of entry into force of the Protocol."

J'ai I'honneur de confirmer I'accord du Grand-DucM de Luxembourg sur Ie contenu de votre

lettre. Par consequent votre lettre et cette confirmation constituent ensemble un Accord entre nos

gouvernements lequel deviendra partie integrante de la Convention a la date de I'entree en

vigueur du Protocole.

Veuiliez agreer, Excellence, I'assurance de ma tres haute consideration.

\~--

Luc Frieden