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

Government of the Federative Republic of Brazil to Improve International Tax 

Compliance and to Implement FATCA

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

Federative Republic of Brazil (each, a “Party,” and together, the “Parties”) have entered 

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

Government of the Federative Republic of Brazil for the Exchange of Information 

Relating to Taxes, signed at Brasilia on March 20, 2007 (the “TIEA”) and 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 I of the TIEA 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 Federative Republic of Brazil is supportive of the 

underlying policy goal of FATCA to improve tax compliance;

Whereas, FATCA has raised a number of issues, including that Brazilian 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 and held by 

residents of Brazil and is committed to exchanging such information with the 

Government of the Federative Republic of Brazil and pursuing equivalent levels of 

exchange, provided that the appropriate safeguards and infrastructure for an effective 

exchange relationship are in place;

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

achieving common reporting and due diligence standards for financial institutions;

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

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

obligations of Brazilian financial institutions to avoid duplicative reporting;

Whereas, an intergovernmental approach to FATCA implementation would address 

legal impediments and reduce burdens for Brazilian 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 TIEA and subject to the 
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confidentiality and other protections provided for therein, including the provisions 

limiting the use of the information exchanged under the TIEA;

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 “Brazil” means the Federative Republic of Brazil.

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 Brazil, the Minister of Finance, the Secretary of 

Federal Revenue or their delegate.

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

Depository Institution, an Investment Entity, or a Specified Insurance 

Company.

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

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

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

substantial portion of its business if the entity’s gross income attributable

to the holding of financial assets and related financial services equals or 

exceeds 20 percent of the entity’s gross income during the shorter of: (i) 

the three-year period that ends on December 31 (or the final day of a 
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non-calendar year accounting period) prior to the year in which the 

determination is being made; or (ii) the period during which the entity 

has been in existence.

i) The term “Depository Institution” means any Entity that accepts 

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

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

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

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

customer:

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

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

rate and index instruments; transferable securities; or commodity 

futures trading;

(2) individual and collective portfolio management; or

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

on behalf of other persons.

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 “Brazilian Financial Institution” means (i) any Financial 

Institution resident in Brazil, but excluding any branch of such Financial 

Institution that is located outside Brazil, and (ii) any branch of a 

Financial Institution not resident in Brazil, if such branch is located in 

Brazil.

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 

Brazilian Financial Institution or a Reporting U.S. Financial Institution, 

as the context requires.
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o) The term “Reporting Brazilian Financial Institution” means any 

Brazilian Financial Institution that is not a Non-Reporting Brazilian

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 Brazilian Financial Institution” means any 

Brazilian Financial Institution, or other Entity resident in Brazil, that is 

described in Annex II as a Non-Reporting Brazilian Financial Institution 

or that otherwise qualifies as a deemed-compliant FFI or an exempt 

beneficial owner under relevant U.S. Treasury Regulations in effect on 

the date of signature of this Agreement.

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 Brazilian 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.

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
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(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 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 
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all or a portion of the trust, or any other natural person exercising 

ultimate effective control over the trust. A Specified U.S. Person shall be 

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

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

through a nominee) a mandatory distribution or may receive, directly or 

indirectly, a discretionary distribution from the trust.

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

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

the occurrence of a specified contingency involving mortality, morbidity, 

accident, liability, or property risk.

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

agrees to make payments for a period of time determined in whole or in 

part by reference to the life expectancy of one or more individuals. The 

term also includes a contract that is considered to be an Annuity Contract 

in accordance with the law, regulation, or practice of the jurisdiction in 

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

payments for a term of years.

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

Contract (other than an indemnity reinsurance contract between two 

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

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

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or 

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

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

“Cash Value” does not include an amount payable under an Insurance 

Contract as:

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

indemnification of an economic loss incurred upon the 

occurrence of the event insured against;

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

an Insurance Contract (other than under a life insurance contract) 

due to policy cancellation or termination, decrease in 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.
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aa) The term “Reportable Account” means a U.S. Reportable Account or a 

Brazilian Reportable Account, as the context requires.

bb) The term “Brazilian 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 

Brazil 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 Brazil,

including an Entity that certifies that it is resident in Brazil for tax 

purposes, with respect to which U.S. source income that is subject to 

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

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

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

maintained by a Reporting Brazilian 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 
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decedent that is a citizen or resident of the United States. This 

subparagraph 1(ee) shall be interpreted in accordance with the U.S. 

Internal Revenue Code.

ff) The term “Specified U.S. Person” means a U.S. Person, other than: (i) a 

corporation the stock of which is regularly traded on one or more 

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

the same expanded affiliated group, as defined in section 1471(e)(2) of 

the U.S. Internal Revenue Code, as a corporation described in clause (i); 

(iii) the United States or any wholly owned agency or instrumentality 

thereof; (iv) any State of the United States, any U.S. Territory, any 

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

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

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

Internal Revenue Code or an individual retirement plan as defined in 

section 7701(a)(37) of the U.S. Internal Revenue Code; (vi) any bank as 

defined in section 581 of the U.S. Internal Revenue Code; (vii) any real 

estate investment trust as defined in section 856 of the U.S. Internal 

Revenue Code; (viii) any regulated investment company as defined in 

section 851 of the U.S. Internal Revenue Code or any entity registered 

with the U.S. Securities and Exchange Commission under the Investment 

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

defined in section 584(a) of the U.S. Internal Revenue Code; (x) any 

trust that is exempt from tax under section 664(c) of the U.S. Internal 

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

Internal Revenue Code; (xi) a dealer in securities, commodities, or 

derivative financial instruments (including notional principal contracts, 

futures, forwards, and options) that is registered as such under the laws 

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

6045(c) of the U.S. Internal Revenue Code; or (xiii) any tax-exempt trust 

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

U.S. Internal Revenue Code.

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

trust.

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

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

interest (including any original issue discount), dividends, rents, salaries, 

wages, premiums, annuities, compensations, remunerations, emoluments, 

and other fixed or determinable annual or periodical gains, profits, and 

income, if such payment is from sources within the United States. 

Notwithstanding the foregoing, a U.S. Source Withholdable Payment 

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

payment in relevant U.S. Treasury Regulations.
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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, Brazil 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 “Brazilian CPF/CNPJ” means a Brazilian taxpayer 

identifying number. CPF (Cadastro de Pessoas Físicas) refers to natural 

persons, and CNPJ (Cadastro Nacional de Pessoas Jurídicas) refers to

legal entities.

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

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

the settlor, the trustees, the protector (if any), the beneficiaries or class of 

beneficiaries, and any other natural person exercising ultimate effective 

control over the trust, and in the case of a legal arrangement other than a 

trust, such term means persons in equivalent or similar positions. The 

term “Controlling Persons” shall be interpreted in a manner consistent 

with the Financial Action Task Force Recommendations.

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

otherwise requires or the Competent Authorities agree to a common meaning (as 

permitted by domestic law), have the meaning that it has at that time under the law of 

the Party applying this Agreement, any meaning under the applicable tax laws of that 

Party prevailing over a meaning given to the term under other laws of that Party.

Article 2

Obligations to Obtain and Exchange Information with Respect to Reportable 

Accounts

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

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

Accounts and shall annually exchange this information with the other Party on an 

automatic basis pursuant to the provisions of Article I of the TIEA.

2. The information to be obtained and exchanged is:

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

each Reporting Brazilian 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 
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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 Brazilian

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 Brazilian Financial 

Institution acted as a custodian, broker, nominee, or 

otherwise as an agent for the Account Holder; 

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

interest paid or credited to the account during the calendar year or 

other appropriate reporting period; and

(7) in the case of any account not described in subparagraph 2(a)(5) 

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

to the Account Holder with respect to the account during the 

calendar year or other appropriate reporting period with respect to 

which the Reporting Brazilian 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 Brazilian

Reportable Account of each Reporting U.S. Financial Institution:
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(1) the name, address, and Brazilian CPF/CNPJ of any person that is 

a resident of Brazil 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.

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 Brazilian tax laws, and 

the amount and characterization of payments made with respect to a Brazilian

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 Brazil:

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

2016 and subsequent years is the information described in 

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

Agreement;

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

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

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

Agreement.

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

Account that is maintained by a Reporting Financial Institution as of June 30, 2014, and 

subject to paragraph 4 of Article 6 of this Agreement, the Parties are not required to 

obtain and include in the exchanged information the Brazilian CPF/CNPJ 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 Brazil and the United States shall enter into an 

agreement or arrangement under the mutual agreement procedure provided for in 

Article X of the TIEA, 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 TIEA, 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 
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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 written notifications 

described in paragraph 8 of this Article.

10. This Agreement shall terminate on September 30, 2015, if Article 2 of this 

Agreement is not in effect pursuant to paragraph 9 of this Article by that date.

Article 4

Application of FATCA to Brazilian Financial Institutions

1. Treatment of Reporting Brazilian Financial Institutions. Each Reporting 

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

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

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

Reporting Brazilian Financial Institution, and the Reporting Brazilian Financial 

Institution:

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

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 Brazilian 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 Brazilian Financial Institution is (i) acting 

as a qualified intermediary (for purposes of section 1441 of the U.S. 

Internal Revenue Code) that has elected to assume primary withholding 

responsibility under chapter 3 of subtitle A of the U.S. Internal Revenue 

Code, (ii) a foreign partnership that has elected to act as a withholding 

foreign partnership (for purposes of both sections 1441 and 1471 of the 

U.S. Internal Revenue Code), or (iii) a foreign trust that has elected to act 

as a withholding foreign trust (for purposes of both sections 1441 and 

1471 of the U.S. Internal Revenue Code), withholds 30 percent of any 

U.S. Source Withholdable Payment to any Nonparticipating Financial 

Institution; and 

e) in the case of a Reporting Brazilian Financial Institution that is not 

described in subparagraph 1(d) of this Article and that makes a payment 
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of, or acts as an intermediary with respect to, a U.S. Source Withholdable 

Payment to any Nonparticipating Financial Institution, the Reporting 

Brazilian 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 Brazilian 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 Brazilian 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 Brazilian 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 Brazilian 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, Brazilian

retirement plans described in Annex II. For this purpose, a Brazilian retirement plan 

includes an Entity established or located in, and regulated by, Brazil, 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 Brazil and regulated with 

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

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

Exempt Beneficial Owners. The United States shall treat each Non-Reporting 

Brazilian Financial Institution as a deemed-compliant FFI or as an exempt beneficial 

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

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a Brazilian 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 

Brazilian 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:
15

a) the Brazilian 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 branch or Related Entity 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 

branch or Related Entity is located or accounts held by Nonparticipating 

Financial Institutions that are not established in the jurisdiction where 

such branch or Related Entity is located, and such branch or Related 

Entity is not used by the Brazilian Financial Institution or any other 

Related Entity to circumvent the obligations under this Agreement or 

under section 1471 of the U.S. Internal Revenue Code, as appropriate.

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

this Agreement:

a) Brazil 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) Brazil 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 Brazil 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 Brazil 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, Brazil may use, and may 

permit Brazilian 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.
16

Article 5

Collaboration on Compliance and Enforcement

1. Minor and Administrative Errors. A Competent Authority shall notify the 

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

has reason to believe that administrative errors or other minor errors may have led to 

incorrect or incomplete information reporting or resulted in other infringements of this 

Agreement. The Competent Authority of such other Party shall apply its domestic law 

(including applicable penalties) to obtain corrected and/or complete information or to 

resolve other infringements of this Agreement.

2. Significant Non-Compliance.

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

Party when the first-mentioned Competent Authority has determined that 

there is significant non-compliance with the obligations under this 

Agreement with respect to a Reporting Financial Institution in the other 

jurisdiction. The Competent Authority of such other Party shall apply its 

domestic law (including applicable penalties) to address the significant 

non-compliance described in the notice.

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

enforcement actions do not resolve the non-compliance within a period 

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

provided, the United States shall treat the Reporting Brazilian 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 them by a Party, as contemplated in this Agreement, but these obligations 

shall remain the responsibility of the Reporting Financial Institutions.

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

requirements to prevent Financial Institutions from adopting practices intended to 

circumvent the reporting required under this Agreement.

Article 6

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency

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

achieve equivalent levels of reciprocal automatic information exchange with Brazil. The 

Government of the United States is committed to further improve transparency and 

enhance the exchange relationship with Brazil by pursuing the adoption of regulations 

and advocating and supporting relevant legislation to achieve such equivalent levels of 

reciprocal automatic information exchange.
17

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

committed to work together, along with Partner Jurisdictions, to develop a practical and 

effective alternative approach to achieve the policy objectives of foreign passthru 

payment and gross proceeds withholding that minimizes burden.

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

committed to working with Partner Jurisdictions and the Organisation for Economic Cooperation and Development, on adapting the terms of this Agreement and other 

agreements between the United States and Partner Jurisdictions to a common model for 

automatic exchange of information, including the development of reporting and due 

diligence standards for financial institutions.

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

Reportable Accounts maintained by a Reporting Financial Institution as of June 30, 

2014:

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

with respect to 2017 and subsequent years, rules requiring Reporting 

U.S. Financial Institutions to obtain and report the Brazilian CPF/CNPJ

of each Account Holder of a Brazilian Reportable Account as required 

pursuant to subparagraph 2(b)(1) of Article 2 of this Agreement; and

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

respect to 2017 and subsequent years, rules requiring Reporting Brazilian

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. Brazil 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 Brazilian

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 Brazil 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 Brazil of any such more favorable terms, and such 

more favorable terms shall apply automatically under this Agreement as if they were 

specified in this Agreement and effective as of the date of signing of the agreement 

incorporating the more favorable terms, unless Brazil declines in writing the application 

thereof.
18

Article 8

Consultations and Amendments

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

Party may request consultations to develop appropriate measures to ensure the 

fulfillment of this Agreement.

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

Unless otherwise agreed upon, such an amendment shall enter into force through the 

same procedures as set forth in paragraph 1 of Article 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 Brazil’s written notification 

to the United States that Brazil 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 _____, in duplicate, in the English and Portuguese languages, both texts being 

equally authentic, this __ day of _____, 20__.

FOR THE GOVERNMENT OF THE 

UNITED STATES OF AMERICA:

FOR THE GOVERNMENT OF THE 

FEDERATIVE REPUBLIC OF 

BRAZIL:
19

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. Brazil shall require that Reporting Brazilian 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.

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 Brazilian Financial Institution elects otherwise, either with 

respect to all Preexisting Individual 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), where the implementing rules in 
20

Brazil 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 

Brazil 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 Brazil requires reporting or withholding 

with respect to insurance products held by residents of Brazil).

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 Contract), But Does Not Exceed 

$1,000,000 (“Lower Value Accounts”).

1. Electronic Record Search. The Reporting Brazilian Financial 

Institution must review electronically searchable data maintained by the 

Reporting Brazilian 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
21

g) An “in-care-of” or “hold mail” address that is the sole 

address the Reporting Brazilian Financial Institution has on file 

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

Account that is a Lower Value Account, an “in-care-of” address 

outside the United States or “hold mail” address shall not be 

treated as U.S. indicia. 

2. If none of the U.S. indicia listed in subparagraph 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 Brazilian Financial Institution must 

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

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

subparagraph applies with respect to that account.

4. Notwithstanding a finding of U.S. indicia under subparagraph 

B(1) of this section, a Reporting Brazilian 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 Brazilian Financial 

Institution obtains, or has previously reviewed and maintains a 

record of:

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

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

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

agreed form);

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

identification evidencing the Account Holder’s citizenship 

or nationality in a country other than the United States; 

and

(3) a copy of the Account Holder’s Certificate of Loss 

of Nationality of the United States or a reasonable 

explanation of:

(a) the reason the Account Holder does not 

have such a certificate despite relinquishing U.S. 

citizenship; or
22

(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 Brazilian Financial Institution obtains, or 

has previously reviewed and maintains a record of:

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

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

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

agreed form); and

(2) documentary evidence, as defined in paragraph D 

of section VI of this Annex I, establishing the Account 

Holder’s non-U.S. status.

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the 

United States, the Reporting Brazilian 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 Brazilian 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
23

(2) documentary evidence, as defined in paragraph D 

of section VI of this Annex I, establishing the Account 

Holder’s non-U.S. status.

C. Additional Procedures Applicable to Preexisting Individual Accounts 

That Are Lower Value Accounts.

1. Review of Preexisting Individual Accounts that are Lower Value 

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

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 Brazilian 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 Brazilian Financial 

Institution must review electronically searchable data maintained by the 

Reporting Brazilian Financial Institution for any of the U.S. indicia 

described in subparagraph B(1) of this section.

2. Paper Record Search. If the Reporting Brazilian 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 Brazilian 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 Brazilian

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;
24

b) the most recent account opening contract or 

documentation;

c) the most recent documentation obtained by the Reporting 

Brazilian 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 Brazilian Financial Institution is not required to perform the 

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

Reporting Brazilian 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 Brazilian Financial 

Institution;

c) the Account Holder’s telephone number(s) currently on 

file, if any, with the Reporting Brazilian 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 Brazilian Financial Institution or another 

Financial Institution);

e) whether there is a current “in-care-of” address or “hold 

mail” address for the Account Holder; and

f) whether there is any power of attorney or signatory 

authority for the account.

4. Relationship Manager Inquiry for Actual Knowledge. In 

addition to the electronic and paper record searches described above, the 

Reporting Brazilian 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.
25

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 Brazilian

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 Brazilian Financial Institution must 

complete the enhanced review procedures described in paragraph D of 

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

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

before December 31, 2014, the Reporting Brazilian 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 

Brazilian 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 Brazilian

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 
26

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

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

Brazilian 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 Brazilian Financial Institution applies the 

enhanced review procedures described in paragraph D of this section to a 

High Value Account, the Reporting Brazilian Financial Institution is not 

required to reapply 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 Brazilian 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 Brazilian Financial Institution must implement 

procedures to ensure that a relationship manager identifies any change in 

circumstances of an account. For example, if a relationship manager is 

notified that the Account Holder has a new mailing address in the United 

States, the Reporting Brazilian 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 Brazilian 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”).
27

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

Unless the Reporting Brazilian 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 Brazil

provide for such an election, the following New Individual Accounts are not 

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

1. A Depository Account unless the account balance exceeds 

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

period.

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

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

period.

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

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

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

be described in paragraph A of this section), the Reporting Brazilian Financial 

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

opening documentation, that allows the Reporting Brazilian Financial Institution 

to determine whether the Account Holder is resident in the United States for tax 

purposes (for this purpose, a U.S. citizen is considered to be resident in the 

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

of another jurisdiction) and confirm the reasonableness of such self-certification 

based on the information obtained by the Reporting Brazilian 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 Brazilian

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 Brazilian Financial 

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

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

Reporting Brazilian 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 
28

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 Brazilian 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 

Brazil provide for such an election, a Preexisting Entity Account with an account 

balance or value that does not exceed $250,000 as of June 30, 2014, is not 

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

until the account balance or value exceeds $1,000,000.

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

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

a Preexisting Entity Account that does not exceed $250,000 as of June 30, 2014 

but the account balance or value of which exceeds $1,000,000 as of the last day 

of 2015 or any subsequent 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 Brazilian 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 Brazilian 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.
29

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

U.S. Person, the Reporting Brazilian Financial Institution must 

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

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

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

determines based on information in its possession or that is 

publicly available, that the Account Holder is not a Specified U.S. 

Person.

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

Institution.

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant to 

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 Brazilian 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 Brazilian Financial Institution may determine that the 

Account Holder is a Brazilian Financial Institution or other 

Partner Jurisdiction Financial Institution if the Reporting 

Brazilian 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 Brazilian 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 Brazilian 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.
30

c) If the Account Holder is not a Brazilian Financial 

Institution or other Partner Jurisdiction Financial Institution, then 

the Reporting Brazilian 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 Brazilian

Financial Institution:

(1) obtains a self-certification (which may be on an 

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

Holder that it is a certified deemed-compliant FFI, or an 

exempt beneficial owner, as those terms are defined in 

relevant U.S. Treasury Regulations; or

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

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 Brazilian 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 Brazilian

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 Brazilian 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 Brazilian Financial Institution 

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

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

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

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

reasonably determine that the Account Holder is an Active NFFE.

c) For purposes of determining whether a Controlling Person 

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

Reporting Brazilian Financial Institution may rely on:
31

(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 Brazilian 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 Brazilian 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 Brazilian 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 Brazil

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 Brazilian Financial Institution maintaining 
32

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 Brazilian Financial 

Institution must determine whether the Account Holder is: (i) a Specified U.S. 

Person; (ii) a Brazilian 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 

Brazilian Financial Institution may determine that the Account Holder is 

an Active NFFE, a Brazilian Financial Institution, or other Partner 

Jurisdiction Financial Institution if the Reporting Brazilian 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 Brazilian Financial Institution, as applicable.

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

Partner Jurisdiction Financial Institution treated by the IRS as a 

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

Reportable Account, but payments to the Account Holder must be 

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

Agreement.

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

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

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

rules apply:

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

Reporting Brazilian Financial Institution must treat the account as 

a U.S. Reportable Account.

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

Brazilian 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 self-certification from the Account Holder or such 

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

Reporting Brazilian 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 Brazilian Financial Institution or other Partner 
33

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 Brazilian Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution), then the account is not a 

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

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

4 of the Agreement.

VI. Special Rules and Definitions. The following additional rules and definitions 

apply in implementing the due diligence procedures described above:

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

Reporting Brazilian Financial Institution may not rely on a self-certification or 

documentary evidence if the Reporting Brazilian 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 Brazilian Financial 

Institution pursuant to the anti-money laundering or similar requirements 

of Brazil to which such Reporting Brazilian 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 Brazil 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:
34

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

preceding calendar year or other appropriate reporting period is 

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

NFFE during the preceding calendar year or other appropriate 

reporting period are assets that produce or are held for the 

production of passive income;

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

established securities market or the NFFE is a Related Entity of 

an Entity the stock of which is 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;
35

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 noncharitable Entity other than pursuant to the conduct of the 

NFFE’s charitable activities, or as payment of reasonable 

compensation for services rendered, or as payment 

representing the fair market value of property which the 

NFFE has purchased; and

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

residence or the NFFE’s formation documents require that, 

upon the NFFE’s liquidation or dissolution, all of its assets 

be distributed to a governmental entity or other non-profit 

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

jurisdiction of residence or any political subdivision 

thereof.

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

Financial Account maintained by a Reporting Financial Institution as of 

June 30, 2014.
36

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 Brazilian Financial Institution is required to 

aggregate all Financial Accounts maintained by the Reporting Brazilian

Financial Institution, or by a Related Entity, but only to the extent that 

the Reporting Brazilian 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 Brazilian Financial Institution is required to take into account 

all Financial Accounts that are maintained by the Reporting Brazilian

Financial Institution, or by a Related Entity, but only to the extent that 

the Reporting Brazilian 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 Brazilian Financial 

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

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

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

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

4. Currency Translation Rule. For purposes of determining the 

balance or value of Financial Accounts denominated in a currency other 

than the U.S. dollar, a Reporting Brazilian 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 Brazilian

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.
37

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.

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 Brazilian

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 Brazilian Financial Institution has 

actual knowledge, or reason to know, that the beneficiary is a Specified U.S. 

Person. A Reporting Brazilian 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 Brazilian 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 Brazilian

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

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

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

Annex I.

F. Reliance on Third Parties. Brazil may permit Reporting Brazilian

Financial Institutions to rely on due diligence procedures performed by third 

parties, to the extent provided in relevant U.S. Treasury Regulations.
38

ANNEX II

The following Entities shall be treated as exempt beneficial owners or deemedcompliant 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 Brazil and the United States to (i) 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 (ii) 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 Brazilian 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 Brazil, any political 

subdivision of Brazil (which, for the avoidance of doubt, includes a state, 

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

instrumentality of Brazil or any one or more of the foregoing (each, a “Brazilian

Governmental Entity”). This category is comprised of the integral parts, 

controlled entities, and political subdivisions of Brazil.

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

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

designated, that constitutes a governing authority of Brazil. The net 

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

or to other accounts of Brazil, 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. 

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

Brazil or that otherwise constitutes a separate juridical entity, provided 

that:

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

Brazilian Governmental Entities directly or through one or more 

controlled entities; 
39

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

or to the accounts of one or more Brazilian 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 Brazilian

Governmental Entities upon dissolution. 

3. Income does not inure to the benefit of private persons if 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 Brazil; 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 Brazil itself, issuing 

instruments intended to circulate as currency. Such an institution may include an 

instrumentality that is separate from the government of Brazil, whether or not 

owned in whole or in part by Brazil. 

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

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

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

Code.

A. Broad Participation Retirement Fund. A fund established in Brazil 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 Brazil; and 
40

3. Satisfies at least one of the following requirements: 

a) The fund is generally exempt from tax in Brazil on 

investment income under the laws of Brazil 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 C 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 C 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.

B. Narrow Participation Retirement Fund. A fund established in Brazil

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 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 Brazil are not entitled to 

more than 20 percent of the fund’s assets; and
41

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

information reporting about its beneficiaries to the relevant tax 

authorities in Brazil.

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

Brazil 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.

D. Investment Entity Wholly Owned by Exempt Beneficial Owners. An 

Entity that is a Brazilian Financial Institution solely because it is an Investment 

Entity, provided that each direct holder of an Equity Interest in the Entity is an 

exempt beneficial owner, and each direct holder of a debt interest in such Entity 

is either a Depository Institution (with respect to a loan made to such Entity) or 

an exempt beneficial owner.

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

Financial Institutions that shall be treated as deemed-compliant FFIs for purposes of 

section 1471 of the U.S. Internal Revenue Code. 

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

satisfying the following requirements:

1. The Financial Institution must be licensed and regulated as a 

financial institution under the laws of Brazil;

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

outside of Brazil. 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 Brazil. For this purpose, a Financial Institution shall not 

be considered to have solicited customers or Account Holders outside 

Brazil 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 Brazil 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; 
42

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

Brazil 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 Brazil’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 Brazil;

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 Brazil (including a 

U.S. Person that was a resident of Brazil when the Financial Account was 

opened but subsequently ceases to be a resident of Brazil) or any Passive 

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

who are not residents of Brazil;

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 Brazil

or by a Passive NFFE with Controlling Persons who are U.S. residents or 

U.S. citizens who are not residents of Brazil is identified, the Financial 

Institution must report such Financial Account as would be required if 

the Financial Institution were a Reporting Brazilian 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 Brazil 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 Brazilian

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 Brazil and, with the 

exception of any Related Entity that is a retirement fund described in 

paragraphs A through C of section II of this Annex II, satisfy the 

requirements set forth in this paragraph A; and 
43

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 Brazil.

B. Local Bank. A Financial Institution satisfying the following 

requirements:

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

regulated under the laws of Brazil as) (a) a bank, (b) credit consortium, or 

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

operated without profit;

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 consortium, credit 

union, or similar cooperative credit organization, members, provided that 

no member has a greater than five percent interest in such credit 

consortium, 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 Brazil,

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 C 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 Brazilian

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 
44

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 Brazilian Financial Institution 

satisfying the following requirements:

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 Brazilian 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 Brazil

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 Brazil 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. 
45

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 Brazil 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 been 

required to perform if it were a Reporting Brazilian 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 

 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.
46

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 Brazilian 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 Brazilian 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, 

and other requirements that the Financial Institution would have 

been required to perform if it were a Reporting Brazilian

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 
47

d) The sponsoring entity has not had its status as a sponsor 

revoked. 

D. Investment Advisors and Investment Managers. An Investment Entity 

established in Brazil 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 

Brazil 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

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 

Brazilian 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 

Brazil 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 
48

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.

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 Brazil that satisfies the following requirements under the 

laws of Brazil.

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 

Brazil 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 Brazil 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 

Brazil (other than an insurance or Annuity Contract) that satisfies the 

following requirements under the laws of Brazil. 

a) The account is subject to regulation as a savings vehicle 

for purposes other than for retirement;
49

b) The account is tax-favored (i.e., contributions to the 

account that would otherwise be subject to tax under the laws of 

Brazil 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) 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, or 

upon the unjustified dismissal of an employee, the extraordinary 

contribution made by an employer, divided by the number of years 

for which contributions have been made, plus the annual 

contribution is $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 Brazil 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 Brazil 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 Brazil established in 

connection with any of the following: 

1. A court order or judgment.
50

2. A sale, exchange, or lease of real or personal property, provided 

that the account satisfies the following requirements:

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 Brazil 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.

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, 
51

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 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 nonU.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.