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Dutch State Secretary of Finance Frans Weekers has concluded and signed an Intergovernmental Agreement (IGA), implementing the US Foreign Accounts Tax Compliance Act (FATCA).
The agreement, which makes possible an automatic exchange of data between the tax authorities of both countries, is designed to tackle tax evasion and undeclared savings. Furthermore, the treaty diminishes, for example, the administrative burden for Dutch financial institutions, and guarantees legal protection for their clients.
An important advantage of the IGA, is that Dutch financial institutions no longer need to conclude agreements with the US tax authorities separately. Instead, each nation's tax authorities will exchange the data. Dutch legislation will be adapted to that end.
From September 2015, the Dutch Tax and Customs Administration will automatically exchange data with the US Internal Revenue Service. The Tax and Customs Administration will also receive data on Dutch tax payers from the US.
Commenting, Dutch State Secretary of Finance Weekers said that: "This agreement underscores the resoluteness of the Netherlands and the United States to tackle international tax evasion."
Weekers added: "In addition, agreements have been made about exemptions and efficient procedures. This will be advantageous for the stability and a level playing field for our Dutch financial sector in the world."
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