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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

Whereas, the United States of America and the Federal Republic of Germany (hereinafter 

referred to as “the Contracting Parties”) have a longstanding and close relationship with 

respect to mutual assistance in tax matters and desire to conclude an agreement to improve 

international tax compliance, further building on that relationship,

Whereas, Article 26 of the Convention between the United States of America 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 1, 2006

(hereinafter referred to as “the Convention”) authorizes exchange of information for tax 

purposes, including on an automatic basis,

Whereas, the United States of America enacted tax information and reporting provisions 

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

“FATCA”), which introduce a reporting regime for financial institutions with respect to 

certain accounts,

Whereas, the Federal Republic of Germany is supportive of the underlying policy goal of 

FATCA to improve tax compliance,

Whereas, the United States of America collects information regarding certain accounts 

maintained by U.S. financial institutions held by residents of the Federal Republic of 

Germany and is committed to exchanging such information with the Federal Republic of 

Germany and pursuing equivalent levels of exchange,

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 United States of America acknowledges the need to coordinate the reporting 

obligations under FATCA with other U.S. tax reporting obligations of German financial 

institutions to avoid duplicative reporting,

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for German financial institutions,

Whereas, the Parties desire to conclude an agreement to improve international tax 

compliance, including with respect to FATCA, based on domestic reporting and reciprocal 

automatic exchange pursuant to the Convention and subject to the confidentiality and other 

protections provided for therein, including the provisions limiting the use of the information 

exchanged under the Convention,

Now, therefore, the Parties have agreed as follows:
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Article 1

Definitions

1. For purposes of this Agreement and any Annexes thereto (hereinafter referred to as 

“the 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, and, when used in a geographical sense, means the land 

territory of the United States of America, including inland waters, and the air 

space and the territorial sea of the United States of America and any maritime 

area beyond the territorial sea within which the United States may exercise 

sovereign rights or jurisdiction in accordance with international law; the term, 

however, 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 “Federal Republic of Germany” when used in a geographical 

sense means the land territory of the Federal Republic of Germany, including 

inland waters, and the air space and the territorial sea of the Federal Republic 

of Germany and any maritime area beyond the territorial sea within which the 

Federal Republic of Germany may exercise sovereign rights or jurisdiction in 

accordance with international law.

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 the Federal Republic of Germany, the Federal Ministry

of Finance or the agency to which it has delegated its powers.

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 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.
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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 “German Financial Institution” means (i) any Financial Institution 

resident in the Federal Republic of Germany, but excluding any branches of 

such Financial Institution that are located outside the Federal Republic of 

Germany, and (ii) any branch of a Financial Institution not resident in the 

Federal Republic of Germany, if such branch is located in the Federal 

Republic of Germany.

m) The term “Partner Jurisdiction Financial Institution” means (i) any 

Financial Institution resident in a Partner Jurisdiction, but excluding any 

branches of such Financial Institution that are located outside the Partner 

Jurisdiction, and (ii) any branch of a Financial Institution not resident in the 

Partner Jurisdiction, if such branch is located in the Partner Jurisdiction.

n) The term “Reporting Financial Institution” means a Reporting German 

Financial Institution or a Reporting U.S. Financial Institution, as the context 

requires.

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

Financial Institution that is not a Non-Reporting German 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 branches of 

such Financial Institution that are 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 
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information is required to be exchanged under subparagraph (2)(b) of Article 2 

of this Agreement.

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

German Financial Institution, or other entity resident in the Federal Republic 

of Germany that is identified in Annex II as a Non-Reporting German 

Financial Institution or that otherwise qualifies as a deemed-compliant Foreign 

Financial Institution (hereinafter referred to as “FFI”), or an exempt beneficial 

owner under relevant U.S. Treasury Regulations.

r) The term “Nonparticipating Financial Institution” means a nonparticipating 

FFI, as that term is defined in relevant U.S. Treasury Regulations, but does not 

include a German Financial Institution or other Partner Jurisdiction Financial 

Institution other than a Financial Institution identified as a Nonparticipating 

Financial Institution pursuant to paragraph 2 of Article 5.

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) above, any equity or debt interest in the Financial Institution 

(other than interests that are regularly traded on an established 

securities market), if (i) the value of the debt or equity interest is 

determined, directly or indirectly, primarily by reference to assets that 

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

interests was established with a purpose of avoiding reporting in 

accordance with this Agreement; and

(3) any Cash Value Insurance Contract and any Annuity Contract issued or 

maintained by a Financial Institution, other than a noninvestmentlinked, nontransferable immediate life annuity that is issued to an 

individual and monetizes a pension or disability benefit provided under 

an account or product identified as excluded from the definition of 

Financial Account in Annex II.

Notwithstanding the foregoing, the term “Financial Account” does not include 

any account, product, or arrangement identified as excluded from the 

definition of Financial Account in Annex II.

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

Contract or Annuity Contract) for the benefit of another person that holds any 

financial instrument or contract held for investment (including, but not limited 

to, a share or stock in a corporation, a note, bond, debenture, or other evidence 

of indebtedness, a currency or commodity transaction, a credit default swap, a 

swap based upon a nonfinancial index, a notional principal contract, an 

Insurance Contract or Annuity Contract, and any option or other derivative 

instrument).

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

Financial Institution, either a capital or profits interest in the partnership. In 

the case of a trust that is a Financial Institution, an Equity Interest is 

considered to be held by any person treated as a settlor or beneficiary of all or 

a portion of the trust, or any other natural person exercising ultimate effective 

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

beneficiary of a foreign trust if such Specified U.S. Person has the right to 

receive directly or indirectly (for example, through a nominee) a mandatory 

distribution or may receive, directly or indirectly, a discretionary distribution 

from the trust. 

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

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

of a specified contingency involving mortality, morbidity, accident, liability, or 

property risk.

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

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

reference to the life expectancy of one or more individuals. The term also 

includes a contract that is 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 
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effective period of the Insurance Contract, or arising from a 

redetermination of the premium due to correction of posting or other 

similar error; or 

(3) a policyholder dividend based upon the underwriting experience of the 

contract or group involved.

aa) The term “Preexisting Account” means a Financial Account maintained by a 

Reporting Financial Institution as of December 31, 2013.

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

German Reportable Account, as the context requires.

cc) The term “German 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 the 

Federal Republic of Germany 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 the 

Federal Republic of Germany, including entities that certify that they are 

resident in the Federal Republic of Germany for tax purposes, with respect to 

which U.S. source income that is subject to reporting under chapter 3 or 

chapter 61 of subtitle A of the U.S. Internal Revenue Code is paid or credited.

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

by a Reporting German 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.

ee) 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. 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 Holders are 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.

ff) 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 
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judgments concerning substantially all issues regarding administration of the 

trust, and (ii) one or more U.S. persons have the authority to control all 

substantial decisions of the trust, or an estate of a decedent that is a citizen or 

resident of the United States. This subparagraph 1(ff) shall be interpreted in 

accordance with the U.S. Internal Revenue Code.

gg) 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) 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 Securities 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; or (xii) a broker as defined in section 6045(c) of the U.S. Internal 

Revenue Code. 

hh) The term “Entity” means a legal person or a legal arrangement such as a trust. 

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

jj) 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.

kk) 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, the Federal 

Republic of Germany 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.
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ll) The term “U.S. TIN” means a U.S. federal taxpayer identifying number.

mm) The term “German TIN” means a German taxpayer identifying number. 

nn) 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 Recommendations of the 

Financial Action Task Force.

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 the 

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, 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 26 of the Convention.

2. The information to be obtained and exchanged is:

a) In the case of the Federal Republic of Germany with respect to each U.S. 

Reportable Account of each Reporting German Financial Institution:

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

an Account Holder of such account and, in the case of a Non-U.S. 

Entity that, after application of the due diligence procedures set forth in 

Annex I, is identified as having one or more Controlling Persons that is 

a Specified U.S. Person, the name, address, and U.S. TIN (if any) of 

such entity and each such Specified U.S. Person;

(2) the account number (or functional equivalent in the absence of an 

account number); 

(3) the name and identifying number of the Reporting German 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; 
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(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 German 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 (5) or (6) of 

this paragraph, 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 

German 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 German Reportable 

Account of each Reporting U.S. Financial Institution:

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

the Federal Republic of Germany 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 or 61 of 

subtitle A of the U.S. Internal Revenue Code.
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Article 3

Time and Manner of Exchange of Information

1. For purposes of the exchange obligation in Article 2, the amount and characterization 

of payments made with respect to a U.S. Reportable Account may be determined in 

accordance with the principles of the Federal Republic of Germany’s tax laws, and the 

amount and characterization of payments made with respect to a German 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, the information exchanged shall 

identify the currency in which each relevant amount is denominated.

3. With respect to paragraph 2 of Article 2, information is to be obtained and exchanged 

with respect to 2013 and all subsequent years, except that:

a) In the case of the Federal Republic of Germany:

(1) the information to be obtained and exchanged with respect to 2013 and 

2014 is only the information described in subparagraphs (a)(1) to 

(a)(4); 

(2) the information to be obtained and exchanged with respect to 2015 is 

the information described in subparagraphs (a)(1) to (a)(7), except for 

gross proceeds described in subparagraph (a)(5)(B); and

(3) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraph (a)(1) to 

(a)(7);

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

with respect to 2013 and subsequent years is all of the information identified 

in subparagraph (b). 

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

that is a Preexisting Account, and subject to paragraph 4 of Article 6, the Parties are not 

required to obtain and include in the exchanged information the German TIN or the U.S. TIN, 

as applicable, of any relevant person if such taxpayer identifying number is not in the records 

of the Reporting Financial Institution. In such 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 

shall be exchanged within nine months after the end of the calendar year to which the 

information relates. Notwithstanding the foregoing, the information that relates to calendar 

year 2013 shall be exchanged no later than September 30, 2015.

6. The Competent Authorities of the Federal Republic of Germany and the United States 

shall enter into an agreement under the mutual agreement procedure provided for in Article 

25 of the Convention, which shall:

a) establish the procedures for the automatic exchange obligations described in 

Article 2;
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b) prescribe rules and procedures as may be necessary to implement Article 5;

and

c) establish as necessary procedures for the exchange of the information reported 

under subparagraph 1(b) of Article 4.

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

provided for in the Convention, including the provisions limiting the use of the information 

exchanged.

Article 4

Application of FATCA to German Financial Institutions

1. Treatment of Reporting German Financial Institutions. Each Reporting German 

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

section 1471 of the U.S. Internal Revenue Code if the Federal Republic of Germany complies 

with its obligations under Articles 2 and 3 with respect to such Reporting German Financial

Institution, and the Reporting German Financial Institution:

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

Competent Authority the information required to be reported in subparagraph 

2(a) of Article 2 in the time and manner described in Article 3;

b) for each of 2015 and 2016, reports annually to the German 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 registration requirements applicable to Financial Institutions 

in Partner Jurisdictions;

d) to the extent that a Reporting German 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 German Financial Institution that is not described in 

subparagraph (d) of this paragraph and that makes a payment of, or acts as an 

intermediary with respect to, a U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution, the Reporting German 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 German Financial Institution with respect to 
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which the conditions of this paragraph are not satisfied shall not be subject to withholding 

under section 1471 of the U.S. Internal Revenue Code unless such Reporting German 

Financial Institution is identified by the IRS as a Nonparticipating Financial Institution 

pursuant to subparagraph 2(b) of Article 5.

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

not require a Reporting German 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, subject to the provisions of Article 3, with respect to such 

account.

3. Specific Treatment of Retirement Plans. The United States shall treat as a deemedcompliant FFI or exempt beneficial owner, as appropriate, for purposes of section 1471 of the 

U.S. Internal Revenue Code German retirement plans described and identified in Annex II. 

For this purpose, a German retirement plan includes an entity established or located in and 

regulated in the Federal Republic of Germany, 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 the Federal Republic of Germany 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 German 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 That Are Nonparticipating Financial 

Institutions. If a German Financial Institution, that otherwise meets the requirements of 

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, such German 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 for purposes of section 1471 

of the U.S. Internal Revenue Code, provided that:

a) the German Financial Institution treats each such Related Entity or branch as a 

separate Nonparticipating Financial Institution for purposes of all the reporting 

and withholding requirements of this Agreement and each such Related Entity

or branch identifies itself to withholding agents as a Nonparticipating 

Financial Institution;

b) each such Related Entity or branch identifies its U.S. accounts and reports the 

information with respect to those accounts as required under section 1471 of 

the U.S. Internal Revenue Code to the extent permitted under the relevant laws 

pertaining to the Related Entity or branch; and

c) such Related Entity or branch does not specifically solicit U.S. accounts held 

by persons that are not resident in the jurisdiction where such Related Entity

or branch is located or accounts held by Nonparticipating Financial 
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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 

German 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: 

a) the Federal Republic of Germany 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) the Federal Republic of Germany 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 the Federal Republic of Germany 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 the Federal Republic of Germany is required to begin 

exchanging information.

7. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding

Article 1 and the definitions provided in the Annexes to this Agreement, in implementing this 

Agreement the Federal Republic of Germany may use, and may permit German Financial 

Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a 

corresponding definition in this Agreement, provided that such application would not 

frustrate the purposes of this Agreement.

Article 5

Collaboration on Compliance and Enforcement

1. Minor and Administrative Errors. Subject to any further terms set forth in a 

competent authority agreement executed pursuant to paragraph 6 of Article 3, a Competent 

Authority can make an inquiry directly to a Reporting Financial Institution in the other 

jurisdiction where it 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 agreement may provide that a Competent Authority 

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

Authority makes such an inquiry of a Reporting Financial Institution in the other jurisdiction 

regarding the Reporting Financial Institution’s compliance with the conditions set forth in 

this Agreement.
14

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 German 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 German Financial Institution as a Nonparticipating 

Financial Institution. The IRS shall make available a list of all Reporting 

German Financial Institutions and other Partner Jurisdiction Financial 

Institutions that are treated as Nonparticipating Financial Institutions pursuant 

to this paragraph.

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 the Federal Republic of 

Germany. The Government of the United States is committed to further improve 

transparency and enhance the exchange relationship with the Federal Republic of Germany

by pursuing the adoption of regulations and advocating and supporting relevant legislation to 

achieve such equivalent levels of reciprocal automatic exchange.

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

to work together, along with other partners, 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 other partners, the Organisation for Economic Co-operation and 

Development, and the European Union, on adapting the terms of this Agreement to a 

common model for automatic exchange of information, including the development of 

reporting and due diligence standards for financial institutions.
15

4. Documentation of Accounts Maintained as of January 1, 2014. With respect to 

Reportable Accounts that are Preexisting Accounts maintained by a Reporting Financial 

Institution:

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 German TIN of each Account Holder of a 

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

Article 2; and

b) The Federal Republic of Germany commits to establish, by January 1, 2017, 

for reporting with respect to 2017 and subsequent years, rules requiring 

Reporting German 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.

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions 

1. The Federal Republic of Germany 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 

German 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 the Federal Republic of Germany 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 the Agreement. 

2. The United States shall notify the Federal Republic of Germany of any such more 

favorable terms and shall apply such more favorable terms automatically under this 

Agreement as if they were specified in this Agreement and effective as of the date of the 

entry into force of the agreement incorporating the more favorable terms.

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 agreement of the Parties. Unless otherwise 

agreed upon, such an amendment shall enter into force through the same procedure as set 

forth in paragraph 1 of Article 10.

Article 9

Annexes

The Annexes form an integral part of this Agreement.
16

Article 10

Term of Agreement

1. This Agreement shall enter into force on the date of the Federal Republic of 

Germany’s written notification to the United States that the Federal Republic of Germany has 

completed its necessary internal procedures for entry into force of this Agreement and shall 

continue in force until terminated.

2. Either Party may terminate the Agreement by giving to the other Party, through 

diplomatic channels, written notice of termination. 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.

Done at [ ] in duplicate, in the English and German languages, both texts being equally 

authentic, this __ day of _____, 20__.

FOR THE UNITED STATES OF 

AMERICA:

FOR THE FEDERAL REPUBLIC

OF GERMANY:
1

ANNEX I 

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. 

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS

I. General

A. The Federal Republic of Germany shall require that Reporting German 

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 shall be read to include the equivalent in other 

currencies.

2. 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 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 reporting period that ends with or 

within that calendar year. 

4. Subject to paragraph II.E (1), an account shall be treated as a U.S. 

Reportable Account beginning as of the date it is identified as such pursuant to 

the due diligence procedures in this Annex I.

5. Unless otherwise provided, information with respect to a U.S. 

Reportable Account shall be reported annually in the calendar year following 

the year to which the information relates.

C. As an alternative to the procedures described in each section of this Annex I, 

the Federal Republic of Germany may allow its Reporting German Financial 

Institutions to rely on the procedures described in relevant U.S. Treasury Regulations 

to establish whether an account is a U.S. Reportable Account or an account held by a 

Nonparticipating Financial Institution. 

II. Preexisting Individual Accounts. The following rules and procedures apply for 

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 German Financial Institution elects otherwise, where the 

implementing rules in the Federal Republic of Germany provide for such an 

election, the following accounts are not required to be reviewed, identified, or 

reported as U.S. Reportable Accounts:
2

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

Accounts with a balance or value that does not exceed $50,000 as of 

December 31, 2013.

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

Accounts that are Cash Value Insurance Contracts and Annuity Contracts with 

a balance or value of $250,000 or less as of December 31, 2013.

3. Preexisting Individual Accounts that are Cash Value Insurance 

Contracts or Annuity Contracts, provided the law or regulations of the Federal 

Republic of Germany or the United States effectively prevents the sale of Cash 

Value Insurance Contracts or Annuity Contracts to U.S. residents, such as if 

the relevant Financial Institution does not have the required registration under 

U.S. law, and the law of the Federal Republic of Germany requires reporting 

or withholding with respect to insurance products held by residents of the 

Federal Republic of Germany.

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

B. Review Procedures for Preexisting Individual Accounts With a Balance or 

Value as of December 31, 2013, 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 German Financial 

Institution must review electronically searchable data maintained by the 

Reporting German 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 or U.S. “in-care-of” address);

d) Current U.S. telephone number;

e) Standing instructions to transfer funds to an account maintained 

in the United States;

f) Currently effective power of attorney or signatory authority 

granted to a person with a U.S. address; or

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

the Reporting German 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 shall

not be treated as U.S. indicia.
3

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 described in subparagraph C (2) of this 

section with respect to the account that results in one or more U.S. indicia 

being associated with the account.

3. If any of the U.S. indicia in subparagraph B (1) of this section are 

discovered in the electronic search, then the Reporting German 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 German Financial Institution is not required to treat 

an account as a U.S. Reportable Account if:

a) Where Account Holder information unambiguously indicates 

a U.S. place of birth, the Reporting German 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 renouncing U.S. citizenship; 

or

(b) the reason the Account Holder did not obtain 

U.S. citizenship at birth.

b) Where 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 German Financial Institution obtains or has previously 

reviewed and maintains a record of:

(1) a self-certification that the Account Holder is not a U.S. 

citizen or resident for tax purposes (which may be on an IRS 

Form W-8 or other similar agreed form); and

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

identification evidencing the Account Holder’s citizenship or 
4

nationality in a country other than the United States.

c) Where Account Holder information contains standing 

instructions to transfer funds to an account maintained in the United 

States, the Reporting German Financial Institution obtains or has 

previously reviewed and maintains a record of:

(1) a self-certification that the Account Holder is not a U.S. 

citizen or 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 VI.D of 

this Annex I, establishing the Account Holder’s non-U.S. status.

d) Where 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 German 

Financial Institution obtains or has previously reviewed and maintains 

a record of:

(1) a self-certification that the Account Holder is not a U.S. 

citizen or resident for tax purposes (which may be on an IRS 

Form W-8 or other similar agreed form); or

(2) documentary evidence, as defined in paragraph VI.D 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 December 31, 2015. 

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 German 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 
5

Balance or Value That Exceeds $1,000,000 as of December 31, 2013, or December 

31 of Any Subsequent Year (“High-Value Accounts”)

1. Electronic Record Search. The Reporting German Financial 

Institution must review electronically searchable data maintained by the 

Reporting German Financial Institution for any of the U.S. indicia identified in 

subparagraph B (1) of this section.

2. Paper Record Search. If the Reporting German Financial 

Institution’s electronically searchable databases include fields for and capture 

all of the information identified 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 High Value Accounts, the 

Reporting German 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 German Financial Institution within the last five years for any of the 

U.S. indicia identified in subparagraph B (1) of this section:

a) the most recent documentary evidence collected with respect to 

the account;

b) the most recent account opening contract or documentation;

c) the most recent documentation obtained by the Reporting 

German Financial Institution pursuant to Anti-Money 

Laundering/Know Your Customer Procedures (hereinafter referred to 

as “AML/KYC”) 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 German Financial Institution is not required to perform the paper 

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

German 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 German Financial Institution;

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

any, with the Reporting German Financial Institution; 

d) whether there are standing instructions to transfer funds in the 

account to another account (including an account at another branch of 
6

the Reporting German 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 

German Financial Institution must treat as U.S. Reportable Accounts any High 

Value Accounts assigned to a relationship manager (including any accounts

aggregated with such account) if the relationship manager has actual 

knowledge that the Account Holder is a Specified U.S. Person.

5. Effect of Finding U.S. Indicia

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

section are discovered in the enhanced review of High Value Accounts 

described above, and the account is not identified as held by a 

Specified U.S. Person in subparagraph D (4) of this section, then no 

further action is required until there is a change in circumstances 

described in subparagraph E (4) of this section.

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 German Financial Institution must treat the 

account as a U.S. Reportable Account unless subparagraph B (4) of 

this section applies.

c) Except for Depository Accounts described in paragraph 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 

December 31, 2013, the Reporting German Financial Institution must 

complete the enhanced review procedures described in paragraph D of this 

section with respect to such account by December 31, 2014. If based on this 

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

German Financial Institution must report the required information about such 

account with respect to 2013 and 2014 in the first report on the Account. For 

all subsequent years, information about the account should be reported on an 

annual basis.
7

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

December 31, 2013, but becomes a High Value Account as of the last day of a 

subsequent calendar year, the Reporting German Financial Institution must 

complete the enhanced review procedures described in paragraph D of this 

section with respect to such account within six months after the last day of the 

calendar year in which the account becomes a High Value Account. If based 

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

Reporting German 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.

3. Once a Reporting German Financial Institution applies the enhanced 

review procedures set forth above to a High Value Account, the Reporting 

German Financial Institution shall not be required to re-apply such procedures, 

other than the relationship manager inquiry 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 

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

Account unless subparagraph B (4) of this section applies.

5. A Reporting German 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 

German Financial Institution shall be required to treat the new address as a 

change in circumstances and shall be required to obtain the appropriate 

documentation from the Account Holder.

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

U.S. Reportable Accounts among accounts held by individuals and opened on or after 

January 1, 2014 (“New Individual Accounts”).

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

the Reporting German Financial Institution elects otherwise where the implementing 

rules in the Federal Republic of Germany provide for such an election:

1. A New Individual Account that is a Depository Account is not required 

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

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

appropriate reporting period.

2. A New Individual Account that is a Cash Value Insurance Contract is 

not required to be reviewed, identified, or reported as a U.S. Reportable 

Account unless the Cash Value exceeds $50,000 at the end of any calendar 

year or other appropriate reporting period. 
8

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 German Financial Institution must obtain 

a self-certification which may be part of the account opening documentation, that 

allows the Reporting German 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 country) and confirm the 

reasonableness of such self-certification based on the information obtained by the 

Reporting German Financial Institution in connection with the opening of the account, 

including any documentation collected pursuant to AML/KYC Procedures.

C. If the self-certification establishes that the Account Holder is resident in the 

United States for tax purposes, the Reporting German 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).

D. If there is a change of circumstances with respect to a New Individual Account 

that causes the Reporting German Financial Institution to know or have reason to 

know that the original self-certification is incorrect or unreliable, the Reporting 

German 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 German Financial 

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

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 a Nonparticipating 

Financial Institution among Preexisting Accounts held by entities (“Preexisting Entity 

Accounts”).

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

Unless the Reporting German Financial Institution elects otherwise, where the 

implementing rules in the Federal Republic of Germany provide for such an election, 

Preexisting Entity Accounts with account balances that do not exceed $250,000 as of 

December 31, 2013, are not required to be reviewed, identified, or reported as U.S. 

Reportable Accounts until the account balance exceeds $1,000,000.

B. Entity Accounts Subject to Review. Preexisting Entity Accounts that have 

an account balance or value that exceeds $250,000 as of December 31, 2013, and 

Preexisting Entity Accounts that initially do not exceed $250,000 but the account 

balance of which later exceeds $1,000,000 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 (as defined in subparagraph VI.B (2)) with one or more Controlling 
9

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 paragraph 1(b) of 

Article 4 of the Agreement are reported to the German 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 German 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 a Nonparticipating Financial 

Institution:

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 Entity Account Holder is a U.S. Person. For this 

purpose, information indicating that the entity is a U.S. Person includes 

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

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

U.S. Person, the Reporting German Financial Institution must treat the 

account as a U.S. Reportable Account unless it obtains a selfcertification 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 Entity Account Holder is a Financial Institution.

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

Financial Institution, 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 Paragraph 1(b) of Article 4 of the Agreement.

a) Subject to subparagraph (b) of this paragraph, if the Account 

Holder is a German Financial Institution or other Partner Jurisdiction 

Financial Institution, then no further review, identification, or reporting 

is required with respect to the account.
10

b) A German Financial Institution or other Partner Jurisdiction 

Financial Institution shall be treated as a Nonparticipating Financial 

Institution if it is identified as such by the IRS pursuant to paragraph 2 

of Article 5 of the Agreement.

c) If the Account Holder, is not a German Financial Institution or 

other Partner Jurisdiction Financial Institution, then the Reporting 

German Financial Institution must treat the entity as a Nonparticipating 

Financial Institution payments to which are reportable under paragraph 

1(b) of Article 4 of the Agreement, unless the Reporting German 

Financial Institution:

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

Form W-8 or similar agreed form) from the entity 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 deemedcompliant FFI, verifies the entity’s FATCA identifying number 

on a 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 German Financial Institution must identify (i) 

whether the entity has Controlling Persons, (ii) whether the entity is a Passive 

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

citizen or resident of the United States. In making these determinations the

Reporting German Financial Institution should follow the guidance in subparagraphs (a) through (d) of this paragraph in the order most appropriate 

under the circumstances.

a) For purposes of determining the Controlling Persons of an 

entity, a Reporting German Financial Institution may rely on 

information collected and maintained pursuant to AML/KYC 

Procedures.

b) For purposes of determining whether the entity is a Passive 

NFFE, the Reporting German Financial Institution must obtain a selfcertification (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 entity is an Active 

NFFE.

c) For purposes of determining whether a Controlling Person of a 

Passive NFFE is a citizen or resident of the United States for tax 

purposes, a Reporting German Financial Institution may rely on: 
11

(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

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

that exceeds $1,000,000. 

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

resident of the United States, 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 December 31, 2013, must be completed by 

December 31, 2015.

2. Review of Preexisting Entity Accounts with a balance or value that 

does not exceed $250,000 as of December 31, 2013, but exceeds $1,000,000 

as of December 31 of a subsequent year, must be completed within six months 

after the end of the calendar year in which the account balance exceeds 

$1,000,000.

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

Entity Account that causes the Reporting German 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 German 

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 to accounts held 

by entities and opened on or after January 1, 2014 (“New Entity Accounts”). 

A. The Reporting German Financial Institution must determine whether the 

Account Holder is: (i) a Specified U.S. Person; (ii) a German Financial Institution or 

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

B. A Reporting German Financial Institution may determine that an Account 

Holder is an Active NFFE, a German Financial Institution, or other Partner 

Jurisdiction Financial Institution if the Reporting German Financial Institution

reasonably determines that the entity has such status on the basis of information that is 

publicly available or in the possession of the Reporting German Financial Institution. 
12

C. In all other cases, a Reporting German Financial Institution must obtain a selfcertification from the Account Holder to establish the Account Holder’s status.

1. If the Entity Account Holder is a Specified U.S. Person, the Reporting 

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

Account.

2. If the Entity Account Holder is a Passive NFFE, the Reporting 

German Financial Institution must identify the Controlling Persons as 

determined under AML/KYC Procedures, and must determine whether any 

such person is a citizen or resident of the United States on the basis of a selfcertification from the Account Holder or such person. If any such person is a 

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

Reportable Account.

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

Specified U.S. Person; (ii) subject to subparagraph C (4) of this section, a 

German Financial Institution or other Partner Jurisdiction Financial Institution; 

(iii) a participating FFI, a deemed-compliant FFI, or an exempt beneficial 

owner, as those terms are defined in relevant U.S. Treasury Regulations; (iv) 

an Active NFFE; or (v) a Passive NFFE none of the Controlling Persons of 

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

Account and no reporting is required with respect to the account.

4. If the Entity Account Holder is a Nonparticipating Financial Institution 

(including a German Financial Institution or other Partner Jurisdiction 

Financial Institution that is identified by the IRS as a Nonparticipating 

Financial Institution pursuant to paragraph 2 of Article 5 of the Agreement), 

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

Account Holder must be reported as contemplated in paragraph 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 

German Financial Institution may not rely on a self-certification or documentary 

evidence if the Reporting German 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. Anti-Money Laundering/Know Your Customer Procedures. “AntiMoney Laundering/Know Your Customer Procedures” or “AML/KYC 

Procedures” means the customer due diligence procedures of a Reporting 

German Financial Institution pursuant to the anti-money laundering or 

similar requirements of the Federal Republic of Germany to which such 

Reporting German Financial Institution is subject. 
13

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

defined in relevant U.S. Treasury Regulations, and also includes any NonU.S. Entity that is resident in the Federal Republic of Germany or other 

Partner Jurisdiction and that is not a Financial Institution.

3. Passive NFFE. A “Passive NFFE” means any NFFE that is not (i) an 

Active NFFE or (ii) a withholding foreign partnership or withholding 

foreign trust pursuant to relevant U.S. Treasury Regulations.

4. Active NFFE. An “Active NFFE” means any NFFE that meets any of the 

following criteria:

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

calendar year or other appropriate reporting period is passive 

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

during the preceding calendar year or other appropriate reporting 

period are assets that produce or are held for the production of 

passive income;

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

securities market or the NFFE is a Related Entity of an Entity the 

stock of which is 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 non-U.S. government, 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, and 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 NFFE shall not qualify for this status if the NFFE 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 
14

intent to continue or recommence operations in a business other 

than that of a Financial Institution;

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; or

i) The NFFE meets all of the following requirements:

i. It is established and maintained in its country of residence 

exclusively for religious, charitable, scientific, artistic, 

cultural, or educational purposes;

ii. It is exempt from income tax in its country 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 Entity’s country of residence or 

the Entity’s formation documents do not permit any income 

or assets of the Entity to be distributed to, or applied for the 

benefit of, a private person or non-charitable Entity other than 

pursuant to the conduct of the Entity’s charitable activities, or 

as payment of reasonable compensation for services rendered, 

or as payment representing the fair market value of property 

which the Entity has purchased; and

v. The applicable laws of the Entity’s country of residence or 

the Entity’s formation documents require that, upon the 

Entity’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 Entity’s 

country of residence or any political subdivision thereof.

C. Account Balance Aggregation and Currency Translation Rules

1. Aggregation of Individual Accounts. For purposes of determining 

the aggregate balance or value of accounts held by an individual, a Reporting 

German Financial Institution shall be required to aggregate all accounts 

maintained by the Reporting German Financial Institution, or Related Entities, 

but only to the extent that the Reporting German Financial Institution’s 

computerized systems link the accounts by reference to a data element such as 

client number or taxpayer identification number, and allow account balances

to be aggregated. Each holder of a jointly held account shall be attributed the 

entire balance or value of the jointly held account for purposes of applying the 

aggregation requirements described in this paragraph.

2. Aggregation of Entity Accounts. For purposes of determining the 
15

aggregate balance or value of accounts held by an Entity, a Reporting German 

Financial Institution shall be required to take into account all accounts held by 

Entities that are maintained by the Reporting German Financial Institution, or 

Related Entities, to the extent that the Reporting German Financial 

Institution’s computerized systems link the accounts by reference to a data 

element such as client number or taxpayer identification number and allow 

account balances to be aggregated.

3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of accounts held 

by a person to determine whether an account is a High Value Account, a 

Reporting German Financial Institution shall also be required, in the case of 

any 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 accounts denominated in a currency other than the U.S. dollar, a 

Reporting German Financial Institution must convert the 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 German 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 appropriate tax official of the 

country in which the payee claims to be a resident.

2. With respect to an individual, any valid identification issued by an 

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

a municipality), that includes the individual’s name and is typically used for 

identification purposes.

3. With respect to an Entity, any official documentation issued by an 

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

a municipality) that includes the name of the Entity and either the address of 

its principal office in the country (or U.S. Territory) in which it claims to be a 

resident or the country (or U.S. Territory) in which the Entity was incorporated 

or organized.

4. With respect to an account maintained in a jurisdiction with antimoney laundering rules that have been approved by the IRS in connection 

with a Qualified Intermediary (“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 
16

U.S. Securities and Exchange Commission report.
1

ANNEX II

NON-REPORTING GERMAN FINANCIAL INSTITUTIONS 

AND PRODUCTS

This Annex II may be updated by a mutual agreement entered into between the Competent 

Authorities of the Federal Republic of Germany and the United States: (1) to include 

additional entities, accounts, and products 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, accounts, and 

products identified in this Annex II as of the date of entry into force of the Agreement; or (2) 

to remove entities, accounts, and products that, due to changes in circumstances, no longer 

present a low risk of being used by U.S. Persons to evade U.S. tax. Procedures for reaching 

such a mutual agreement may be included in the mutual agreement described in paragraph 6 

of Article 3 of the Agreement.

I. Exempt Beneficial Owners. The following categories of institutions are Non-Reporting 

German Financial Institutions that are treated as exempt beneficial owners for purposes of 

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

A. Governmental Entities

1. The Federal Republic of Germany, its States (Länder), or any one of their 

political subdivisions or local authorities (“Relevant Government”) and any legal 

entity under public law and any other entity wholly owned by any Relevant 

Government provided that such entities are not Custodial Institutions, Depository 

Institutions or a Specified Insurance Company.

2. Finanzagentur GmbH (Federal Republic of Germany – Finance Agency).

3. Agencies within the meaning of the German Financial Market Stabilization 

Fund Act.

4. Institutions that are legal entities under public law or that are otherwise wholly 

owned by any Relevant Government and which are charged under statutes with 

performing promotional tasks, which do not act as commercial banks and which are 

tax exempt under number 2 of paragraph 1 of Sec. 5 of the Corporate Income Tax Act.

B. Central Bank

Deutsche Bundesbank (German Federal Bank)

C. International Organizations

The office in the Federal Republic of Germany of any intergovernmental or 

supranational organization, including of the European Union, recognized by the 

Federal Republic of Germany as entitled to tax exemption under agreements, laws or 

regulations.
2

D. Pension Funds

Pension funds that qualify for benefits under paragraph 11 of article 10 of the Convention

.

II. Deemed-Compliant Financial Institutions. 

A. The following categories of institutions are Non-Reporting German Financial Institutions 

that are treated as deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal 

Revenue Code:

1. Small Financial Institutions with Local Client Base

A German Financial Institution that meets all of the following requirements:

a. The Financial Institution must be licensed and regulated under the 

laws of the Federal Republic of Germany; 

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

outside the Federal Republic of Germany; 

c. The Financial Institution must not solicit account holders outside 

the Federal Republic of Germany. For this purpose, a Financial 

Institution shall not be considered to have solicited account holders 

outside of the Federal Republic of Germany merely because it operates 

a website, provided that the website does not specifically indicate that 

the Financial Institution provides accounts or services to nonresidents 

or otherwise target or solicit U.S. customers;

d. The Financial Institution must be required under the tax laws of the 

Federal Republic of Germany to perform either information reporting 

or withholding of tax with respect to accounts held by residents of the 

Federal Republic of Germany;

e. At least 98 percent of the accounts by value provided by the 

Financial Institution must be held by residents (including residents that 

are entities) of the Federal Republic of Germany or another Member 

State of the European Union; 

f. Subject to subparagraph 1(g), below, beginning on January 1, 2014, 

the Financial Institution does not maintain accounts for (i) any 

Specified U.S. Person who is not a resident of the Federal Republic of 

Germany (including a U.S. Person that was a resident of the Federal 

Republic of Germany when the account was opened but subsequently 

ceases to be a resident of the Federal Republic of Germany), (ii) a 

Nonparticipating Financial Institution, or (iii) any Passive NFFE with 

Controlling Persons who are U.S. citizens or residents;
3

g. On or before January 1, 2014, the Financial Institution must 

implement policies and procedures to monitor whether it provides any 

account held by a person described in subparagraph 1(f), and if such 

an account is discovered, the Financial Institution must report such 

account as though the Financial Institution were a Reporting German 

Financial Institution or close such account; 

h. With respect to each account that is held by an individual who is 

not a resident of the Federal Republic of Germany or by an entity, and 

that is opened prior to the date that the Financial Institution 

implements the policies and procedures described in subparagraph 

1(g), above, the Financial Institution must review those accounts in 

accordance with the procedures described in Annex I applicable to 

Preexisting Accounts to identify any U.S. Reportable Account or 

account held by a Nonparticipating Financial Institution, and must 

close any such accounts that were identified, or report on such 

accounts as though the Financial Institution were a Reporting German 

Financial Institution; 

i. Each Related Entity of the Financial Institution must be incorporated 

or organized in the Federal Republic of Germany and must meet the 

requirements set forth in this paragraph; and

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

discriminate against opening or maintaining accounts for individuals 

who are Specified U.S. Persons and who are residents of the Federal 

Republic of Germany.

B. Certain Collective Investment Vehicles

1. In the case of an Investment Entity that is a collective investment vehicle regulated 

under the laws of the Federal Republic of Germany if 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 Financial Institutions that are not Nonparticipating Financial Institutions, such 

collective investment vehicle will be treated as a deemed-compliant FFI for purposes of 

section 1471 of the U.S. Internal Revenue Code, and the reporting obligations of any 

Investment Entity (other than a Financial Institution through which interests in the collective 

investment vehicle are held) will be deemed fulfilled with respect to interests in the collective 

investment vehicle.

2. With respect to interests in: 

a) an Investment Entity that is regulated as a collective investment vehicle under 

the laws of a Partner Jurisdiction, all of the interest in which (including debt 

interests in excess of $50,000) are held by or through one or more 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, 
4

the reporting obligations of any Investment Entity that is a German Financial 

Institution (other than a Financial Institution through which interests in the collective 

investment vehicle are held) will be deemed fulfilled.

3. In the case of an Investment Entity regulated by the Federal Republic of Germany that 

is a collective investment vehicle not described in paragraph 1 or 2, consistent with paragraph 

3 of Article 5 of the Agreement, if the information required to be reported by the collective 

investment vehicle under the Agreement with respect to interests in the collective investment 

vehicle is reported by the collective investment vehicle or another Investment Entity, the 

reporting obligations of all other Investment Entities required to report with respect to the 

interests in the collective investment vehicle will be deemed fulfilled with respect to such 

interests.

4. A collective investment vehicle regulated under the laws of the Federal Republic of 

Germany will not fail to qualify under paragraph 1 or 2 above, or otherwise as a deemedcompliant FFI, solely because the collective investment vehicle has issued physical shares in 

bearer form, provided that: (i) the collective investment vehicle has not issued, and does not 

issue, any physical shares in bearer form after December 31, 2012; (ii) the collective 

investment vehicle (or a Reporting German Financial Institution) performs due diligence 

outlined in Annex I and reports any information required to be reported with respect to any 

such shares when they are presented for redemption or other payment; and (iii) the collective 

investment vehicle has in place policies and procedures to ensure that such shares are 

redeemed or immobilized as soon as possible, and in any event prior to January 1, 2017.

III. Exempt Products. The following categories of accounts and products established in the

Federal Republic of Germany and maintained by a German Financial Institution shall not be 

treated as Financial Accounts or accounts held by a Nonparticipating Financial Institution, 

and therefore will not be U.S. Reportable Accounts, under the Agreement:

A. Certain Retirement Accounts or Products

1. Arrangements under section 1 of the Employers’ Retirement Benefit Law

(Betriebsrentengesetz).

2. Arrangements under the Law on Private Pension Plan Contracts Certification

(Altersvorsorgeverträge-Zertifizierungsgesetz), provided that contributions to such arrangement

do not exceed fifty thousand Euro (€50,000) in any year.

3. An account or product 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 or product is subject to the same 

requirements and oversight under the laws of such other Partner Jurisdiction as if such account or 

product were established in that Partner Jurisdiction and maintained by a Partner Jurisdiction 

Financial Institution in that Partner Jurisdiction.

B. Certain Other Accounts or Products
5

Escrow Accounts held by notaries, lawyers and insolvency trustees that serve as escrow solely 

with respect to transactions that are required by German law to be accomplished by or through a 

notary, lawyer or insolvency trustee.

Contracts with a Housing Savings Institution under the Home Savings and Loan Associations Act 

(Gesetz über Bausparkassen), provided that the annual amount saved is not in excess of fifty 

thousand Euro (€50,000).