Former Dutch State Secretary of Finance, Weekers, entered into a FATCA agreement with the United States on 18 December 2013. The signing of the agreement marked the implementation of the American ‘Foreign Account Tax Compliance Act’ (‘FATCA’).
The terms of the agreement provide for automatic tax information sharing between the two countries. As of September 2015, the Dutch Tax Authorities will share information concerning American taxpayers with the IRS. At the same time they will also automatically receive information from the United States concerning Dutch taxpayers.
Weekers temporarily relaxed the voluntary disclosure scheme on 2 September 2013. The relaxed rules mean that the 30% penalty will not be imposed if taxpayers reveal their undeclared savings to the Tax Authorities before 1 July 2014. These temporary arrangements also apply to voluntary disclosures made prior to 2 September 2013 on which the penalty ruling has not yet become irrevocable. Given that the automatic exchange of information between the United States and the Netherlands has not yet entered into force, Dutch taxpayers with undeclared taxable assets in the United States may still apply the temporarily relaxed voluntary disclosure scheme.