On December 18, 2013, the United States of America and the Kingdom of the Netherlands signed an intergovernmental agreement (‘IGA’) entitled, ‘Agreement between the United States of America and the Kingdom of the Netherlands to Improve International Tax Compliance and to lmplememt FATCA.’ The IGA requires, in particular, the exchange of certain information with respect to U.S. and Netherlands Reportable Accounts on an automatic basis, pursuant to the provisions of Article 30 of the ‘Convention between the United States of America and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income’ signed at Washington on December 18, 1992, as amended in 1993 and 2004 (the ‘Double Tax Convention’) and the ‘Convention on Mutual Administrative Assistance in Tax Matters’, done at Strasbourg on 25 January, 1988 (the ‘Mutual Assistance Convention’) (hereinafter the ‘Conventions’ refers to the Double Tax Convention and the Mutual Assistance Convention and any amendments to those conventions that are in force for both Parties).
Article 3(6} of the IGA provides that the Competent Authorities of the United States and Netherlands (the ‘Competent Authorities’) ‘shall enter into an arrangement under the mutual agreement procedure provided for in Article 29 of the Double Tax Convention and Article 24 of the Mutual Assistance Convention,’ in order to establish and prescribe the rules and procedures necessary to implement certain provisions in the IGA. Article 29 of the Double Tax Convention and Article 24 of the Mutual Assistance Convention permit the Competent Authorities to also address other matters regarding implementation of the Conventions. These matters may also be addressed herein as the IGA is entered into pursuant to the Conventions. Consistent with the IGA and after consultations between the Competent Authorities, the Competent Authorities have reached the following arrangement (this ‘Arrangement’).
Terms used both in this Arrangement and in the IGA have the same meaning as in the IGA, unless otherwise specified in this Arrangement. References to Paragraphs pertain to Paragraphs of this Arrangement, unless otherwise specified. Except as otherwise provided in the IGA, any references to U.S. Treasury Regulations are to the relevant regulations in effect at the time of application. References to Internal Revenue Service (‘IRS’) Publications include updated versions. All references to days comprising time periods for completion of actions refer to calendar days and not business days. However, if such period ends on a Saturday, Sunday or national statutory holiday, it would be treated as ending on the next calendar day that is not a Saturday, Sunday or national statutory holiday.
