Model 1 IGA Annex II
November 30, 2014
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Annex II
The following Entities shall be treated as exempt beneficial owners or deemed-compliant FFIs,
as the case may be, and the following accounts are excluded from the definition of Financial
Accounts.
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This Annex II may be modified by a mutual written decision entered into between the Competent
Authorities of [FATCA Partner] and the United States: (1) to include additional Entities and
accounts that present a low risk of being used by U.S. Persons to evade U.S. tax and that have
similar characteristics to the Entities and accounts described in this Annex II as of the date of
signature of the Agreement; or (2) to remove Entities and accounts that, due to changes in
circumstances, no longer present a low risk of being used by U.S. Persons to evade U.S. tax.
Any such addition or removal shall be effective on the date of signature of the mutual decision,
unless otherwise provided therein. Procedures for reaching such a mutual decision may be
included in the mutual agreement or arrangement described in paragraph 6 of Article 3 of the
Agreement.
I. Exempt Beneficial Owners other than Funds. The following Entities shall be treated as
Non-Reporting [FATCA Partner] 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 [FATCA Partner], any political subdivision
of [FATCA Partner] (which, for the avoidance of doubt, includes a state, province,
county, or municipality), or any wholly owned agency or instrumentality of [FATCA
Partner] or any one or more of the foregoing (each, a “[FATCA Partner] Governmental
Entity”). This category is comprised of the integral parts, controlled entities, and political
subdivisions of [FATCA Partner].
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[The descriptions in this Annex II are a summary of the final U.S. Treasury Regulations and include the
modifications to the final regulations to which the United States Treasury is willing to agree. The United States
Treasury no longer intends to separately list in Annex II to future intergovernmental agreements classes of Entities
or accounts that are addressed by the descriptions herein. In addition, the United States Treasury no longer
intends to list non-profit organizations or Entities that are not Financial Institutions. These types of Entities are
described in subparagraphs B(2) through B(4) of section VI of Annex I. The descriptions in this Annex II reflect
extensive consultation with financial institutions and governments, and therefore cannot be further modified solely
to ease or eliminate a specific element of a description (e.g., with respect the requirement that a Financial
Institution with a local client base has at least 98 percent of its Financial Accounts by value as of the last day of
the preceding calendar year held by residents (described in paragraph A of section III of this Annex II), the United
States Treasury will not agree to a lower applicable percentage). The United States Treasury is, however, willing
to discuss the application of this Annex II to Entities or accounts that do not satisfy all the requirements of a
particular description listed herein. As part of such discussion, FATCA Partner must provide the United States
Treasury with a specific written description of which requirements are satisfied and which are not satisfied, and
with respect to the requirements that are not satisfied, must demonstrate the existence of a substitute requirement
that provides equal assurance that such Entity or account presents a low-risk of tax evasion.]