- A. The following Financial Institutions are treated as Non-Reporting Netherlands Financial Institutions and as deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal Revenue Code:
- 1. Any Financial Institution that meets all of the following requirements:
- a)The Financial Institution must be licensed and regulated under the laws of the Netherlands;
- b)The Financial Institution must have no fixed place of business outside the Netherlands;
- c)The Financial Institution must not solicit account holders outside the Netherlands. For this purpose, a Financial Institution shall not be considered to have solicited account holders outside of the Netherlands merely because it operates a website, provided that the website does not specifically indicate that the Financial Institution provides accounts or services to non-residents or otherwise target or solicit U.S. customers;
- d)The Financial Institution must be required under the tax laws of the Netherlands to perform either information reporting, withholding of tax with respect to accounts held by residents of the Netherlands or is required to identify resident accounts for purposes of satisfying Netherlands AML due diligence requirements;
- 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 Netherlands or another Member State of the European Union;
- f)Subject to subparagraph 1(g), below, beginning on July 1, 2014, the Financial Institution does not provide accounts to (i) any Specified U.S. Person who is not a resident of the Netherlands (including a U.S. Person that was a resident of the Netherlands when the account was opened but subsequently ceases to be a resident of the Netherlands), (ii) a Nonparticipating Financial Institution, or (iii) any Passive NFFE with Controlling Persons who are U.S. citizens or residents;
- g)On or before July 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 Netherlands Financial Institution (including by following the applicable registration requirements on the IRS FATCA registration website) or close such account;
- h)With respect to each account that is held by an individual who is not a resident of the Netherlands 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 Netherlands Financial Institution (including by following the applicable registration requirements on the IRS FATCA registration website);
- i)Each Related Entity of the Financial Institution must be incorporated or organized in the Netherlands and meet the requirements set forth in this paragraph 1; 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 Netherlands.
- 2.
- a)An algemeen nut beogende instelling (“ANBI”) as described in Article 5b of the General Tax Act (Algemene wet inzake rijksbelastingen );
- b)A sociaal belang behartigende instelling (“SBBI”) as described in Article 5c of the General Tax Act (Algemene wet inzake rijksbelastingen );
- c)A steunstichting SBBI as described in Article 5d of the General Tax Act (Algemene wet inzake rijksbelastingen );
- d)A charitable organization that does not have shareholders, including a religious, cultural or scientific organization, as meant in paragraph 1(f) of Article 16 of the Income Tax Act BES (Wet inkomstenbelasting BES ), established in the Caribbean part of the Netherlands;
- e)The following quasi-governmental non-profit organizations:
- (i)Stichting Stimuleringsfonds Volkshuisvesting Nederlandse Gemeenten (Fund for Stimulation of Public Housing Dutch Municipalities);
- (ii)Stichting Nationaal Restauratiefonds (Restoration Fund);
- (iii)Stichting Groenfonds (Green Fund);
- (iv)Besloten vennootschap met beperkte aansprakelijkheid Nationale Maatschappij tot Behoud, Ontwikkeling en Exploitatie van Industrieel Erfgoed B.V. (National Society for Salvation, Development and Exploitation of Industrial Monuments).
- 3.A fund that is exempt under the Corporation Tax Act (Wet op de vennootschapsbelasting 1969 ) and constituted by a Netherlands labor union and operated exclusively to administer or provide benefits to its members in case they are on strike (stakingskassen ) and of which the payments are exempt under paragraph 1(f) of Article 3.13 of the Income Tax Act 2001 (Wet inkomstenbelasting 2001 ).
- 4.An Investment Entity resident in the Netherlands the sole activity of which is (1) to render investment advice to, and act on behalf of, or (2) to manage portfolios for, a customer based on a power of attorney or similar instrument (e.g. , an investment authority) issued by the holder of a Financial Account or based on investment powers in a directorship capacity for the purposes of investing, managing, or administering funds deposited in the name of the person or Entity granting the power or issuing the similar instrument with a Financial Institution other than a Nonparticipating Financial Institution.
- B.
- 1.In the case of an Investment Entity that is a collective investment vehicle resident in the Netherlands 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 exempt beneficial owners, Active NFFEs described in subparagraph B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. Persons, or 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) shall 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 exempt beneficial owners, Active NFFEs described in subparagraph B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. Persons, or 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; the reporting obligations of any Investment Entity that is a Netherlands Financial Institution (other than a Financial Institution through which interests in the collective investment vehicle are held) shall be deemed fulfilled.
- 3.In the case of an Investment Entity that is a collective investment vehicle resident in the Netherlands 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 pursuant to 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.
