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.
- A)Broad Participation Retirement Fund. A fund established in Curaçao to provide retirement, disability, or death benefits, or any combination thereof, to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that the fund:
- 1.Does not have a single beneficiary with a right to more than five percent of the fund’s assets;
- 2.Is subject to government regulation and provides information reporting to the tax authorities in Curaçao; and
- 3.Satisfies at least one of the following requirements:
- a)The fund is generally exempt from tax in Curaçao on investment income under the laws of Curaçao due to its status as a retirement or pension plan;
- b)The fund receives at least 50 percent of its total contributions (other than transfers of assets from other plans described in paragraphs A through C of this section or from retirement and pension accounts described in subparagraph A(1) of section V of this Annex II) from the sponsoring employers;
- c)Distributions or withdrawals from the fund are allowed only upon the occurrence of specified events related to retirement, disability, or death (except rollover distributions to other retirement funds described in paragraphs A through C of this section or retirement and pension accounts described in subparagraph A(1) of section V of this Annex II), or penalties apply to distributions or withdrawals made before such specified events; or
- d)Contributions (other than certain permitted make-up contributions) by employees to the fund are limited by reference to earned income of the employee or may not exceed $50,000 annually, applying the rules set forth in Annex I for account aggregation and currency translation.
- B)Narrow Participation Retirement Fund. A fund established in Curaçao to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that:
- 1.The fund has fewer than 50 participants;
- 2.The fund is sponsored by one or more employers that are not Investment Entities or Passive NFFEs;
- 3.The employee and employer contributions to the fund (other than transfers of assets from retirement and pension accounts described in subparagraph A(1) of section V of this Annex II) are limited by reference to earned income and compensation of the employee, respectively;
- 4.Participants that are not residents of Curaçao are not entitled to more than 20 percent of the fund’s assets; and
- 5.The fund is subject to government regulation and provides information reporting to the tax authorities in Curaçao.
- C)Pension Fund of an Exempt Beneficial Owner. A fund established in Curaçao by an exempt beneficial owner to provide retirement, disability, or death benefits to beneficiaries or participants that are current or former employees of the exempt beneficial owner (or persons designated by such employees), or that are not current or former employees, if the benefits provided to such beneficiaries or participants are in consideration of personal services performed for the exempt beneficial owner.
- D)Investment Entity Wholly Owned by Exempt Beneficial Owners. An Entity that is a Curaçao Financial Institution solely because it is an Investment Entity, provided that each direct holder of an Equity Interest in the Entity is an exempt beneficial owner, and each direct holder of a debt interest in such Entity is either a Depository Institution (with respect to a loan made to such Entity) or an exempt beneficial owner.
