Whereas,
the Kingdom of the Netherlands, in respect of Curaçao,
and
the United States of America (each, a “Party,” and together, the “Parties”)
have a longstanding and close relationship with respect to mutual assistance in tax matters in respect of the Kingdom of the Netherlands, in respect of Curaçao, and the United States of America and desire to conclude an agreement to improve international tax compliance through mutual assistance in tax matters based on an effective infrastructure for the automatic exchange of information;
Whereas, both Parties share the understanding that the Agreement Between the Government of the United States of America and the Government of the Kingdom of the Netherlands in respect of the Netherlands Antilles for the Exchange of Information with Respect to Taxes, done at Washington on 17 April 2002 (the “TIEA”) continues to apply to, inter alia, Curaçao (formerly part of the Netherlands Antilles) subject to the understandings reached in an exchange of notes dated 31 October 2014 and 4 November 2014 between the Parties regarding the application of the TIEA in light of the dissolution of the Netherlands Antilles;
Whereas, Article 4 of the TIEA authorizes the exchange of information for tax purposes, including on an automatic basis;
Whereas, the United States of America enacted provisions commonly known as the Foreign Account Tax Compliance Act (“FATCA”), which introduce a reporting regime for financial institutions with respect to certain accounts;
Whereas, the Kingdom of the Netherlands, including Curaçao, is supportive of the underlying policy goal of FATCA to improve tax compliance;
Whereas, FATCA has raised a number of issues, including that Curaçao financial institutions may not be able to comply with certain aspects of FATCA due to domestic legal impediments;
Whereas, the United States of America collects information regarding certain accounts maintained by U.S. financial institutions held by residents of Curaçao and is committed to exchanging such information with Curaçao and pursuing equivalent levels of exchange, provided that appropriate safeguards and infrastructure for an effective exchange relationship are in place;
Whereas, an intergovernmental approach to FATCA implementation would address legal impediments and reduce burdens for Curaçao financial institutions;
Whereas, the Parties desire to conclude an agreement to improve international tax compliance and provide for the implementation of FATCA with respect to Curaçao based on domestic reporting and reciprocal automatic exchange pursuant to the TIEA and subject to the confidentiality and other protections provided for therein, including the provisions limiting the use of the information exchanged under the TIEA;
Now, therefore, the Parties have agreed as follows:
