Memorandum of Understanding

regarding the

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

Government of the Grand Duchy of Luxembourg to Improve International Tax

Compliance and with respect to the United States information reporting provisions

commonly known as the Foreign Account Tax Compliance Act

At the signing today of the Agreement hetween the Governmentofthe United States of

America and the Government of the Grand Duchy of Luxembourg to Improve International

Tax Compliance and with respect to the United States information reporting provisions

commonly known as the Foreign Account Tax Compliance Act (hereinafter the

"Agreement"), the representatives of the United States of America and Grand Duchy of

Luxembourg wish to confirm their understanding of the following:

In reference to paragraph 1 of Article 10 (Term of the Agreement) of the Agreement:

As of the date of signature of the Agreement, the United States Department of the Treasury

intends to treat each Luxembourg Financial Institution, as that term is defined in the

Agreement, as complying with, and not subject to withholding under section 1471 of the U.S.

Internal Revenue Code during such lime as the Grand Duchy of Luxembourg is pursuing the

necessary internal procedures for entry into force of the Agreement. The United States

1hrther understands that the Grand Duchy of Luxembourg intends to contact the United States

as soon as it is aware that there might be a delay in the Luxembourg internal approval process

for entry into force of the Agreement such that the Grand Duchy of Luxembourg would not

be able to provide its notification under paragraph 1 of Article 10 of the Agreement prior to

September 30, 2015. If upon consuitation with the Grand Duchy of Luxembourg, the United

States Depmtment of the Treasury receives credible assurances that such a delay is likely to

be resolved in a reasonable period of time, the United States Department of the Treasury may

decide to continue to apply FATeA to Luxembourg Financial Institutions in the manner

described above as long as the United States Department of the Treasury assesses that the

Grand Duchy of Luxembourg is likely to be able to send its notification under paragraph 1 of

Article iO by September 30, 2016. It is understood that should the Agreement enter into

force after September 30, 2015, any inlormation that would have been reportable under the

Agreement thereafter (and prior to its entry into force) had the Agreement been in force by

September 30, 2015, is owed on the September 30 next following the date of entry into force.

In reference to subparagraph 2(a)(3) of Article 2 (Obligations to Obtain and Exchange

Information with Respect to Reportable Accounts) of the Agreement:

It is understood that the Grand Duchy of Luxembourg intends for each Reporting

Luxembourg Financial Institution to use a Global Intermediary Identification Number

("GIIN") issued by the Internal Revenue Service as the identifying number referenced in

Subparagraph 2(a)(3) of Article 2 of the Agreement.
In reference to subparagraph l(c) of Article 4 (Application of FATCA to Luxembourg

Financial Institutions) of the Agreement

It is understood that Grand Duchy of Luxembourg intends for Luxembourg Financial

Institutions to comply with the registration requirements applicable to Financial Institutions

in Partner Jurisdictions by registering with the Internal Revenue Service and obtaining a

GUN from the Internal Revenue Service.

L-,,-~ ')8t+. Signed at-~n duplicate, in the English language, this _L.__ . day of

.~ ~ ~ French language text is to be prepared, which is to be considered

equally official upon an exchange of letters between the United States of America and the

Grand Duchy of Luxembourg confirming its conformity with the English language text.

FOR THE GOVERNMENT OF THE

UNrrED STArES OF AMERICA:

FOR1~EGOVERNMENTOFTHE

GRAND DUCHY OF LUXEMBOURG: