Banking news: Agreement between the US and the Netherlands for the exchange of information about United States tax subjects.
On 18 December 2013, the Ministry of Finance has announced that the Netherlands has concluded an agreement with the United States government about the exchange of information. The reason for this is the United States tax law, the Foreign Account Tax Compliance Act (FATCA).
This legislation is intended to ensure that United States tax subjects who hold assets outside the US correctly file a tax return with the United States tax authorities, the IRS. Under this law, financial institutions will forward information about customers who have a potential tax liability in the US to the Dutch Tax and Customs Administration. The Dutch Tax and Customs Administration will forward this information to the IRS. The FATCA takes effect on 1 July 2014. Financial institutions are required to assess existing or new customers from 1 July 2014. The Dutch Banking Association (NVB) has published information on its website on 19 December 2013 to inform customers who have a potential United States tax liability.
The obligations under the agreement with the US are embedded in Dutch law, so that all financial institutions in the Netherlands are required to comply with the FATCA. The FATCA legislation is intended to combat tax evasion by United States tax subjects. The law is part of the global approach to tax evasion.
Were you born in the United States? Are you based or resident in the United States? Do you have other ties with the US? In these cases, you may be contacted to provide information on possible United States tax liability. In the coming time, all financial institutions will assess the extent to which all private and business customers may potentially be subject to tax in the US. If we regard you as a potential United States tax subject, we will ask you for an explanation.
On our website you can find the frequently asked questions and on the website of the NVB you can find more information about the FATCA. On the NVB website you can also read about the United States voluntary disclosure provisions if you are a United States tax subject. These voluntary disclosure provisions are for United States tax subjects who have not fulfilled their obligation to file a tax return in the last few years and who now file a report with the IRS.
If you want tax advice specific to your situation, you will have to contact your tax advisor. Banks are namely not allowed to provide tax advice.