On 18th December 2013, the Dutch Ministry of Finance has announced the Netherlands has signed an agreement on the exchange of data with the US government. The agreement was concluded based on the US tax legislation, Foreign Account Tax Compliance Act (FATCA). The purpose of this law is to assure the US tax payers, who have funds entrusted outside of the US, report these to the US tax authorities, the IRS.

Based on this law financial institutions will report the information of customers who may are obliged to report their taxes in the United States, to the Dutch Tax Authorities. The Dutch Tax Authorities will provide this information to the IRS.  FATCA enters into force as of 1 July 2014. Starting from 1st July 2014 Financial Institutions are obliged to check their pre-existing and new customers. The Dutch Bankers Association (NVB) has published a leaflet to inform all customers who might be obliged to report their taxes in the United States. You can find the leaflat by clicking the link below.

According to the US Tax Authorities, the IRS, the United States are yearly missing out on a large amount of tax income, because tax payers are not or incompletely file their tax reporting. A large part of this income is according to the IRS due to the American citizens who live abroad or have funds entrusted abroad. Therefore US government has decided to implement the US law FATCA starting from 1 July 2014.

http://www.nvb.nl/media/document/001129_nvb-fatca-eng-nov13.pdf