DECLARATION OF UNDERSTANDING REGARDING THE AGREEMENT 

BETWEEN THE UNITED STATES OF AMERICA AND THE FEDERAL REPUBLIC 

OF GERMANY TO IMPROVE INTERNATIONAL TAX COMPLIANCE AND WITH 

RESPECT TO THE UNITED STATES INFORMATION AND REPORTING 

PROVISIONS COMMONLY KNOWN AS THE FOREIGN ACCOUNT TAX 

COMPLIANCE ACT 

At the signing today of the Agreement Between the United States of America and the Federal 

Republic of Germany to Improve International Tax Compliance and with respect to the 

United States Information and Reporting Provisions Commonly Known as Foreign Account 

Tax Compliance Act (hereinafter the "Agreement"), the representatives of the United States 

of America and the Federal Republic of Germany wish to confirm their understanding ofthe 

following: 

With reference to Subparagraph 2(a)(3) of Article 2 of the Agreement 

It is understood that the Federal Republic of Germany intends for each Reporting German 

Financial Institution to use a Global Intermediary Identification Number ("GUN") issued by 

the Internal Revenue Service as the identifying number referenced in Subparagraph 2(a)(3) of 

Article 2 of the Agreement. 

With reference to paragraph 7 of Article 3 (Time and Manner of Exchange of 

Information) of the Agreement 

It is understood that paragraph 1 sentences 3 through 5 of Article 26 of the Convention 

between the United States and the Federal Republic of Germany for the Avoidance of Double 

Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital 

and to Certain Other Taxes, signed at Bonn on August 29, 1989, as amended by the Protocol 

signed at Berlin on June I, 2006, applies to all information exchanged under the Agreement 

and sentence 4 of that paragraph applies accordingly for all persons or authorities in case the 

exchanged information is disclosed in public court proceedings or in judicial decisions. 

With reference to Subparagraph l(c) of Article 4 of the Agreement 

It is understood that the Federal Republic of Germany intends for German 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. 
~ith reference to paragraph 1 of Article 10 (Term of Agreement) of the Agreement 

The United States understands that the government of the Federal Republic of Germany plans 

to present the Agreement to its parliament for its approval in 2013 together with draft 

legislation that is to implement the provisions ofthe Agreement with the goal of having the 

Agreement and the legislation enter into force not later than September 30, 2015. Based on 

this understanding, as of the date of signature of the Agreement, the United States Department 

of the Treasury intends to treat each German 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 time as the Federal Republic of Germany is pursuing 

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

further understands that the Federal Republic of Germany's Ministry ofFinance intends to 

contact the United States Department of the Treasury as soon as it is aware that there might be 

a delay in the German internal approval process for entry into force of the Agreement such 

that the Federal Republic of Germany would not be able to provide its notification under 

paragraph 1 of Article 10 of the Agreement prior to September 30, 2015. lfupon consultation 

with the Federal Republic of Germany, the United States Department 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 FATCA to 

German Financial Institutions in the manner described above as long as the United States 

Department ofthe Treasury assesses that the Federal Republic of Germany is likely to be able 

to send its notification under paragraph 1 of Article 10 by September 30, 2016. It is 

understood that should the Agreement enter into force after September 30, 2015, any 

information 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, 20 15, is owed on the 

September 30 next following the date of entry into force. 

Signed in duplicate in the English and German languages. 

Berlin, May 31, 2013 

For the For the 

United States of America Federal Republic of Germany 

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