Netherlands sign FATCA agreement
On 18 December representatives of the Netherlands and the United States signed an intergovernmental agreement (IGA) for the automatic exchange of data between the tax authorities of both countries — and thus implementing the U.S. legislation known as “Foreign Accounts Tax Compliance Act” or FATCA.
According to a Dutch Ministry of Finance release, with the IGA signed on 18 December, Dutch financial institutions no longer need to conclude agreements with the U.S. tax authorities separately. Instead, each nation’s tax authorities will exchange the data. Dutch legislation will be adapted to that end.
The release states that the FATCA agreement reduces the administrative burden for Dutch financial institutions and guarantees legal protection for their clients.
Under the agreement, beginning September 2015, the Dutch tax and customs administration will automatically exchange data with the U.S. Internal Revenue Service. The Dutch tax administration will also receive data of Dutch tax payers from the United States.
Read the FATCA brief posted on the Ministry of Finance website.
For further information, please do not hesitate to contact us.
Any tax advice in this communication is not intended or written by KPMG to be used, and cannot be used, by a client or any other person or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing, or recommending to another party any matters addressed herein.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.