The following Entities shall be treated as Non-Reporting Curaçao Financial Institutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, other than with respect to a payment that is derived from an obligation held in connection with a commercial financial activity of a type engaged in by a Specified Insurance Company, Custodial Institution, or Depository Institution:
- A)Governmental Entity. The Government of Curaçao, any political subdivision thereof (which, for the avoidance of doubt, includes a state, province, county, or municipality), or any wholly owned agency or instrumentality of Curaçao or any one or more of the foregoing (each, a “Curaçao Governmental Entity”). This category is comprised of the integral parts, controlled entities, and political subdivisions of Curaçao.
- 1.An integral part of Curaçao means any person, organization, agency, bureau, fund, instrumentality, or other body, however designated, that constitutes a governing authority of Curaçao. The net earnings of the governing authority must be credited to its own account or to other accounts of Curaçao, with no portion inuring to the benefit of any private person. An integral part does not include any individual who is a sovereign, official, or administrator acting in a private or personal capacity.
- 2.A controlled entity means an Entity that is separate in form from Curaçao or that otherwise constitutes a separate juridical entity, provided that:
- a)The Entity is wholly owned and controlled by one or more Curaçao Governmental Entities directly or through one or more controlled entities;
- b)The Entity’s net earnings are credited to its own account or to the accounts of one or more Curaçao Governmental Entities, with no portion of its income inuring to the benefit of any private person; and
- c)The Entity’s assets vest in one or more Curaçao Governmental Entities upon dissolution.
- 3.Income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a governmental program, and the program activities are performed for the general public with respect to the common welfare or relate to the administration of some phase of government. Notwithstanding the foregoing, however, income is considered to inure to the benefit of private persons if the income is derived from the use of a governmental entity to conduct a commercial business, such as a commercial banking business, that provides financial services to private persons.
- B)Central Bank. An institution that is by law or government sanction the principal authority, other than the Government of Curaçao itself, issuing instruments intended to circulate as currency. Such an institution may include an instrumentality that is separate from the government of Curaçao, whether or not owned in whole or in part by Curaçao.
- C)International Organization. Any International Organization and any wholly owned agency or instrumentality thereof. This category includes any intergovernmental organization (including a supranational organization) (1) that is comprised primarily of non-U.S. governments; (2) that has in effect a headquarters agreement with Curaçao; and (3) the income of which does not inure to the benefit of private persons.
