Perintah Cukai Pendapatan (Perjanjian Antara Kerajaan Malaysia Dengan Kerajaan Amerika Syarikat untuk Meningkatkan Pematuhan Cukai Antarabangsa dan Melaksanakan Foreign Account Tax Compliance Act) 2022

Perintah

Cukai

Pendapatan

(Perjanjian antara Kerajaan Malaysia dengan Kerajaan Amerika Syarikat untuk

Meningkatkan Pematuhan Cukai Antarabangsa dan Melaksanakan Foreign Account

Tax Compliance Act) 2022.

Pertukaran maklumat

Kerajaan Malaysia dengan Kerajaan Amerika Syarikat yang menandatangani Perjanjian antara Kerajaan Malaysia dengan Kerajaan Amerika Syarikat untuk Meningkatkan

Pematuhan Cukai Antarabangsa dan Melaksanakan Foreign Account Tax Compliance Act untuk bertukar maklumat berhubung dengan cukai dan adalah suai manfaat bahawa perkiraan itu dikuatkuasakan.

P.U. (A) 278 3

INCOME TAX ACT 1967

INCOME TAX (AGREEMENT BETWEEN THE GOVERNMENT OF MALAYSIA AND

THE GOVERNMENT OF THE UNITED STATES OF AMERICA TO IMPROVE

INTERNATIONAL TAX COMPLIANCE AND TO IMPLEMENT THE FOREIGN ACCOUNT

TAX COMPLIANCE ACT) ORDER 2022

For purposes of this agreement and any annexes thereto (“Agreement”), the following terms shall have the meanings set forth below:

Any term not otherwise defined in this Agreement shall, unless the context otherwise requires or the Competent Authorities agree to a common meaning

(as permitted by domestic law), have the meaning that it has at that time under the law of the Party applying this Agreement, any meaning under the applicable tax laws of that

Party prevailing over a meaning given to the term under other laws of that Party.

Article 2

Obligations to Obtain and Exchange Information with Respect to

U.S. Reportable Accounts

Subject to the provisions of Article 3 of this Agreement, Malaysia shall obtain the information specified in paragraph 2 of this Article with respect to all U.S. Reportable

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Accounts and shall annually exchange this information with the United States on an automatic basis.

The information to be obtained and exchanged with respect to each U.S.

Reportable Account of each Reporting Malaysian Financial Institution is:

For purposes of the exchange obligation in Article 2 of this Agreement, the amount and characterization of payments made with respect to a U.S. Reportable

Account may be determined in accordance with the principles of the tax laws of Malaysia.

For purposes of the exchange obligation in Article 2 of this Agreement, the information exchanged shall identify the currency in which each relevant amount is denominated.

With respect to paragraph 2 of Article 2 of this Agreement, information is to be obtained and exchanged with respect to 2014 and all subsequent years, except that:

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Account maintained by a Reporting Malaysian Financial Institution as of June 30, 2014, and subject to paragraph 2 of Article 6 of this Agreement, Malaysia is not required to obtain and include in the exchanged information the U.S. TIN of any relevant person if such U.S. TIN is not in the records of the Reporting Malaysian Financial Institution.

In such a case, Malaysia shall obtain and include in the exchanged information the date of birth of the relevant person, if the Reporting Malaysian Financial Institution has such date of birth in its records.

Article 2 of this Agreement shall be exchanged by the later of nine months after the end of the calendar year to which the information relates or the next September 30th after the Agreement enters into force.

The Competent Authorities of Malaysia and the United States shall enter into an agreement or arrangement under the mutual agreement procedure provided for in

Article 8 of this Agreement, which shall:

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All information exchanged shall be subject to the confidentiality and other protections provided for in Article 9 of this Agreement, including the provisions limiting the use of the information exchanged.

Article 4

Application of FATCA to Malaysian Financial Institutions

Malaysian Financial Institution shall be treated as complying with, and not subject to withholding under, section 1471 of the U.S. Internal Revenue Code if Malaysia complies with its obligations under Articles 2 and 3 of this Agreement with respect to such Reporting Malaysian Financial Institution, and the Reporting Malaysian

Financial Institution:

Suspension of Rules Relating to Recalcitrant Accounts. The United States shall not require a Reporting Malaysian Financial Institution to withhold tax under section 1471 or 1472 of the U.S. Internal Revenue Code with respect to an account held by a recalcitrant account holder (as defined in section 1471(d)(6) of the U.S. Internal

P.U. (A) 278 20

Revenue Code), or to close such account, if the U.S. Competent Authority receives the information set forth in paragraph 2 of Article 2 of this Agreement, subject to the provisions of Article 3 of this Agreement, with respect to such account.

Specific Treatment of Malaysian Retirement Plans. The United States shall treat as deemed-compliant FFIs or exempt beneficial owners, as appropriate, for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code, Malaysian retirement plans described in Annex II. For this purpose, a Malaysian retirement plan includes an Entity established or located in, and regulated by, Malaysia, or a predetermined contractual or legal arrangement, operated to provide pension or retirement benefits or earn income for providing such benefits under the laws of

Malaysia and regulated with respect to contributions, distributions, reporting, sponsorship, and taxation.

Beneficial Owners. The United States shall treat each Non-Reporting Malaysian

Financial Institution as a deemed-compliant FFI or as an exempt beneficial owner, as appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code.

Non-Participating Financial Institutions. If a Malaysian Financial Institution, that otherwise meets the requirements described in paragraph 1 of this Article or is described in paragraph 3 or 4 of this Article, has a Related Entity or branch that operates in a jurisdiction that prevents such Related Entity or branch from fulfilling the requirements of a participating FFI or deemed-compliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code or has a Related Entity or branch that is treated as a Non-Participating Financial Institution solely due to the expiration of the transitional rule for limited FFIs and limited branches under relevant U.S. Treasury

Regulations, such Malaysian Financial Institution shall continue to be in compliance with the terms of this Agreement and shall continue to be treated as a deemed-compliant FFI or exempt beneficial owner, as appropriate, for purposes of section 1471 of the

U.S. Internal Revenue Code, provided that:

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Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 of this Agreement:

Article 1 of this Agreement and the definitions provided in the Annexes to this

Agreement, in implementing this Agreement, Malaysia may use, and may permit

Malaysian Financial Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a corresponding definition in this Agreement, provided that such application would not frustrate the purposes of this Agreement.

Article 5

Collaboration on Compliance and Enforcement

General Inquiries. Subject to any further terms set forth in a competent authority agreement concluded pursuant to paragraph 6 of Article 3 of this Agreement, the U.S. Competent Authority may make follow-up requests to the Malaysian Competent

Authority, pursuant to which the Malaysian Competent Authority shall obtain and provide additional information with respect to a U.S. Reportable Account, including the account statements prepared in the ordinary course of a Reporting Malaysian Financial

Institution’s business that summarize the activity (including withdrawals, transfers, and closures) of the U.S. Reportable Account.

Malaysian Competent Authority when the U.S. Competent Authority has reason to believe that administrative errors or other minor errors may have led to incorrect or incomplete information reporting or resulted in other infringements of this Agreement.

The Malaysian Competent Authority shall apply its domestic law (including applicable penalties) to obtain corrected and/or complete information or to resolve other infringements of this Agreement.

Significant Non-Compliance.

Malaysian Financial Institutions to use third party service providers to fulfill the obligations imposed on such Reporting Malaysian Financial Institutions by Malaysia, as contemplated in this Agreement, but these obligations shall remain the responsibility of the Reporting Malaysian Financial Institutions.

Prevention of Avoidance. Malaysia shall implement as necessary requirements to prevent Financial Institutions from adopting practices intended to circumvent the reporting required under this Agreement.

Article 6

Mutual Commitment to Continue to Enhance the Effectiveness of Information

Exchange and Transparency

Treatment of Passthru Payments and Gross Proceeds. The Parties are committed to work together, along with Partner Jurisdictions, to develop a practical and effective alternative approach to achieve the policy objectives of foreign passthru payment and gross proceeds withholding that minimizes burden.

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U.S. Reportable Accounts maintained by a Reporting Malaysian Financial Institution as of

June 30, 2014, Malaysia commits to establish, by January 1, 2017, for reporting with respect to 2017 and subsequent years, rules requiring Reporting Malaysian Financial

Institutions to obtain the U.S. TIN of each Specified U.S. Person as required pursuant to subparagraph 2(a) of Article 2 of this Agreement.

Article 7

Consistency in the Application of FATCA to Partner Jurisdictions

or Annex I of this Agreement relating to the application of FATCA to Malaysian Financial

Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement pursuant to which the other Partner Jurisdiction commits to undertake the same obligations as Malaysia described in Articles 2 and 3 of this Agreement, and subject to the same terms and conditions as described therein and in Articles 5, 6, 7, 10 and 11 of this Agreement.

The United States shall notify Malaysia of any such more favorable terms, and such more favorable terms shall apply automatically under this Agreement as if such terms were specified in this Agreement and effective as of the date of signing of the agreement incorporating the more favorable terms, unless Malaysia declines in writing the application thereof.

Article 8

Mutual Agreement Procedure

Where difficulties or doubts arise between the Parties regarding the implementation, application, or interpretation of this Agreement, the Competent

Authorities shall endeavor to resolve the matter by mutual agreement.

The Competent Authorities may adopt and implement procedures to facilitate the implementation of this Agreement.

The Competent Authorities may communicate with each other directly for purposes of reaching a mutual agreement under this Article.

Article 9

Confidentiality

The Malaysian Competent Authority shall treat any information received from the

United States pursuant to Article 5 of this Agreement as confidential and shall only disclose such information as may be necessary to carry out its obligations under this

Agreement. Such information may be disclosed in connection with court proceedings related to the performance of the obligations of Malaysia under this Agreement

of this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) of the Government of the

United States concerned with the assessment, collection, or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to,

U.S. federal taxes, or the oversight of such functions. Such persons or authorities shall use such information only for such purposes. Such persons may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person, entity, authority, or jurisdiction. Notwithstanding the foregoing, where Malaysia provides prior, written consent, the information may be used for purposes permitted under the provisions of a mutual legal assistance treaty in force between the Parties that allows for the exchange of tax information.

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Article 10

Consultations and Amendments

In case any difficulties in the implementation of this Agreement arise, either Party may, independently of the mutual agreement procedure described in paragraph 1

of Article 8 of this Agreement, request consultations to develop appropriate measures to ensure the fulfillment of this Agreement.

This Agreement may be amended by written mutual agreement of the Parties.

Unless otherwise agreed upon, such an amendment shall enter into force through the same procedures as set forth in paragraph 1 of Article 12 of this Agreement.

Article 11

Annexes

The Annexes form an integral part of this Agreement.

Article 12

Term of Agreement

This Agreement shall enter into force on the date of Malaysia’s written notification to the United States that Malaysia has completed its necessary internal procedures for entry into force of this Agreement.

Either Party may terminate this Agreement by giving notice of termination in writing to the other Party. Such termination shall become effective on the first day of the month following the expiration of a period of 12 months after the date of the notice of termination.

The Parties shall, consult in good faith to amend this Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this Agreement.

If this Agreement is terminated, both Parties shall remain bound by the provisions of Article 9 of this Agreement with respect to any information obtained under this Agreement.

In witness whereof, the undersigned, being duly authorized thereto by their respective

Governments, have signed this Agreement.

Done at __________, in duplicate in the English language, this 21 day of July, 2021.

FOR THE GOVERNMENT OF

MALAYSIA:

FOR

THE

GOVERNMENT

OF

THE

UNITED STATES OF AMERICA

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ANNEX I

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S.

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN NON-PARTICIPATING

FINANCIAL INSTITUTIONS

I.

General.

Malaysia shall require that Reporting Malaysian Financial Institutions apply the due diligence procedures contained in this Annex I to identify U.S. Reportable

Accounts and accounts held by Non-Participating Financial Institutions.

For purposes of the Agreement,

All dollar amounts are in U.S. dollars and shall be read to include the equivalent in other currencies.

Except as otherwise provided herein, the balance or value of an account shall be determined as of the last day of the calendar year or other appropriate reporting period.

Where a balance or value threshold is to be determined as of

June 30, 2014 under this Annex I, the relevant balance or value shall be determined as of that day or the last day of the reporting period ending immediately before June 30, 2014, and where a balance or value threshold is to be determined as of the last day of a calendar year under this Annex I, the relevant balance or value shall be determined as of the last day of the calendar year or other appropriate reporting period.

Subject to subparagraph E(1) of section II of this Annex I, an account shall be treated as a U.S. Reportable Account beginning as of the date it is identified as such pursuant to the due diligence procedures in

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this Annex I.

Unless otherwise provided, information with respect to a U.S.

Reportable Account shall be reported annually in the calendar year following the year to which the information relates.

As an alternative to the procedures described in each section of this Annex I,

Malaysia may permit Reporting Malaysian Financial Institutions to rely on the procedures described in relevant U.S. Treasury Regulations to establish whether an account is a U.S. Reportable Account or an account held by a Non-Participating

Financial Institution. Malaysia may permit Reporting Malaysian Financial

Institutions to make such election separately for each section of this Annex I either with respect to all relevant Financial Accounts or, separately, with respect to any clearly identified group of such accounts (such as by line of business or the location of where the account is maintained).

II.

Preexisting Individual Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts among Preexisting Accounts held by individuals (“Preexisting Individual Accounts”).

Accounts Not Required to Be Reviewed, Identified, or Reported. Unless the Reporting Malaysian Financial Institution elects otherwise, either with respect to all Preexisting Individual Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in Malaysia provide for such an election, the following Preexisting Individual Accounts are not required to be reviewed, identified, or reported as U.S. Reportable Accounts:

Individual Account with a balance or value that does not exceed $50,000

as of June 30, 2014.

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Individual Account that is a Cash Value Insurance Contract or an Annuity Contract with a balance or value of $250,000 or less as of

June 30, 2014.

A Preexisting Individual Account that is a Cash Value Insurance

Contract or an Annuity Contract, provided the law or regulations of

Malaysia or the United States effectively prevent the sale of such a Cash

Value Insurance Contract or an Annuity Contract to U.S. residents

(e.g., if the relevant Financial Institution does not have the required registration under U.S. law, and the law of Malaysia requires reporting or withholding with respect to insurance products held by residents of Malaysia.)

A Depository Account with a balance of $50,000 or less.

Review Procedures for Preexisting Individual Accounts With a Balance or Value as of June 30, 2014, that Exceeds $50,000 ($250,000 for a Cash Value

Insurance Contract or Annuity Contract), But Does Not Exceed $1,000,000

(“Lower Value Accounts”).

Electronic Record Search. The Reporting Malaysian Financial Institution must review electronically searchable data maintained by the Reporting Malaysian

Financial Institution for any of the following U.S. indicia:

If none of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the electronic search, then no further action is required until there is a change in circumstances that results in one or more U.S. indicia being associated with the account, or the account becomes a High Value Account described in paragraph D of this section.

If any of the U.S. indicia listed in subparagraph B(1) of this section are discovered in the electronic search, or if there is a change in circumstances that results in one or more U.S. indicia being associated with the account, then the

Reporting Malaysian Financial Institution must treat the account as a U.S.

Reportable Account unless it elects to apply subparagraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that account.

Notwithstanding a finding of U.S. indicia under subparagraph B(1) of this section, a Reporting Malaysian Financial Institution is not required to treat an account as a U.S. Reportable Account if:

U.S. indicia must be completed by June 30, 2016.

If there is a change of circumstances with respect to a Preexisting Individual

Account that is a Lower Value Account that results in one or more U.S. indicia described in subparagraph B(1) of this section being associated with the account, then the Reporting Malaysian Financial Institution must treat the account as a U.S.

Reportable Account unless subparagraph B(4) of this section applies.

Except for Depository Accounts described in subparagraph A(4) of this section, any Preexisting Individual Account that has been identified as a U.S.

Reportable Account under this section shall be treated as a U.S. Reportable Account in all subsequent years, unless the Account Holder ceases to be a Specified

U.S. Person.

Enhanced Review Procedures for Preexisting Individual Accounts With a

Balance or Value That Exceeds $1,000,000 as of June 30, 2014, or December 31 of 2015 or Any Subsequent Year (“High Value Accounts”).

Electronic Record Search. The Reporting Malaysian Financial Institution must review electronically searchable data maintained by the Reporting Malaysian

Financial Institution for any of the U.S. indicia described in subparagraph B(1) of this section.

Paper Record Search. If the Reporting Malaysian Financial Institution’s electronically searchable databases include fields for, and capture all of the information described in, subparagraph D(3) of this section, then no further paper record search is required. If the electronic databases do not capture all of this information, then with respect to a High Value Account, the Reporting Malaysian

Financial Institution must also review the current customer master file and, to the extent not contained in the current customer master file, the following documents associated with the account and obtained by the Reporting Malaysian Financial

Institution within the last five years for any of the U.S. indicia described in subparagraph B(1) of this section:

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Malaysian Financial Institution is not required to perform the paper record search described in subparagraph D(2) of this section if the Reporting Malaysian Financial

Institution’s electronically searchable information includes the following:

Relationship Manager Inquiry for Actual Knowledge. In addition to the electronic and paper record searches described above, the Reporting Malaysian

Financial Institution must treat as a U.S. Reportable Account any High Value

Account assigned to a relationship manager (including any Financial Accounts aggregated with such High Value Account) if the relationship manager has actual knowledge that the Account Holder is a Specified U.S. Person.

Effect of Finding U.S. Indicia.

If a Preexisting Individual Account is a High Value Account as of June 30, 2014, the Reporting Malaysian Financial Institution must complete the enhanced review procedures described in paragraph D of this section with respect to such account by June 30, 2015. If based on this review such account is identified as a U.S. Reportable Account on or before December 31, 2014, the Reporting Malaysian Financial

Institution must report the required information about such account with respect to 2014 in the first report on the account and on an annual basis thereafter. In the case of an account identified as a U.S. Reportable

Account after December 31, 2014 and on or before June 30, 2015, the

Reporting Malaysian Financial Institution is not required to report information about such account with respect to 2014, but must report information about the account on an annual basis thereafter.

If a Preexisting Individual Account is not a High Value Account as of June 30, 2014, but becomes a High Value Account as of the last day of 2015 or any subsequent calendar year, the Reporting Malaysian Financial

Institution must complete the enhanced review procedures described in paragraph D of this section with respect to such account within six months after the last day of the calendar year in which the account becomes a High Value Account. If based on this review such account is identified as a U.S. Reportable Account, the Reporting Malaysian

Financial Institution must report the required information about such account with respect to the year in which it is identified as a U.S.

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Reportable Account and subsequent years on an annual basis, unless the

Account Holder ceases to be a Specified U.S. Person.

Once a Reporting Malaysian Financial Institution applies the enhanced review procedures described in paragraph D of this section to a High

Value Account, the Reporting Malaysian Financial Institution is not required to re-apply such procedures, other than the relationship manager inquiry described in subparagraph D(4) of this section, to the same High Value Account in any subsequent year.

If there is a change of circumstances with respect to a High Value

Account that results in one or more U.S. indicia described in subparagraph B(1) of this section being associated with the account, then the Reporting Malaysian Financial Institution must treat the account as a U.S. Reportable Account unless it elects to apply subparagraph B(4) of this section and one of the exceptions in such subparagraph applies with respect to that account.

A Reporting Malaysian Financial Institution must implement procedures to ensure that a relationship manager identifies any change in circumstances of an account. For example, if a relationship manager is notified that the Account Holder has a new mailing address in the

United States, the Reporting Malaysian Financial Institution is required to treat the new address as a change in circumstances and, if it elects to apply subparagraph B(4) of this section, is required to obtain the appropriate documentation from the Account Holder.

Preexisting Individual Accounts That Have Been Documented for

Certain Other Purposes. A Reporting Malaysian Financial Institution that has previously obtained documentation from an Account Holder to establish the

Account Holder’s status as neither a U.S. citizen nor a U.S. resident in order to meet its obligations under a qualified intermediary, withholding foreign partnership, or

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withholding foreign trust agreement with the IRS, or to fulfill its obligations under chapter 61 of Title 26 of the United States Code, is not required to perform the procedures described in subparagraph B(1) of this section with respect to Lower

Value Accounts or subparagraphs D(1) through D(3) of this section with respect to

High Value Accounts.

III.

New Individual Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts among Financial Accounts held by individuals and opened on or after July 1, 2014 (“New Individual Accounts”).

A. Accounts Not Required to Be Reviewed, Identified, or Reported. Unless the

Reporting Malaysian Financial Institution elects otherwise, either with respect to all New Individual Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in Malaysia provide for such an election, the following New Individual Accounts are not required to be reviewed, identified, or reported as U.S. Reportable Accounts:

A Depository Account unless the account balance exceeds $50,000 at the end of any calendar year or other appropriate reporting period.

A Cash Value Insurance Contract unless the Cash Value exceeds $50,000 at the end of any calendar year or other appropriate reporting period.

Other New Individual Accounts. With respect to New Individual Accounts not described in paragraph A of this section, upon account opening

(or within 90 days after the end of the calendar year in which the account ceases to be described in paragraph A of this section), the Reporting Malaysian Financial

Institution must obtain a self-certification, which may be part of the account opening documentation, that allows the Reporting Malaysian Financial Institution to determine whether the Account Holder is resident in the United States for tax purposes (for this purpose, a U.S. citizen is considered to be resident in the

United States for tax purposes, even if the Account Holder is also a tax resident of

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another jurisdiction) and confirm the reasonableness of such self-certification based on the information obtained by the Reporting Malaysian Financial Institution in connection with the opening of the account, including any documentation collected pursuant to AML/KYC Procedures.

If the self-certification establishes that the Account Holder is resident in the United States for tax purposes, the Reporting Malaysian Financial

Institution must treat the account as a U.S. Reportable Account and obtain a self-certification that includes the Account Holder’s U.S. TIN (which may be an

IRS Form W-9 or other similar agreed form).

If there is a change of circumstances with respect to a New Individual

Account that causes the Reporting Malaysian Financial Institution to know, or have reason to know, that the original self-certification is incorrect or unreliable, the Reporting Malaysian Financial Institution cannot rely on the original self-certification and must obtain a valid self-certification that establishes whether the Account Holder is a U.S. citizen or resident for U.S. tax purposes. If the Reporting Malaysian Financial Institution is unable to obtain a valid self-certification, the Reporting Malaysian Financial Institution must treat the account as a U.S. Reportable Account.

IV.

Preexisting Entity Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts and accounts held by Non-Participating

Financial Institutions among Preexisting Accounts held by Entities (“Preexisting Entity

Accounts”).

Entity Accounts Not Required to Be Reviewed, Identified or Reported.

Unless the Reporting Malaysian Financial Institution elects otherwise, either with respect to all Preexisting Entity Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in Malaysia provide for such an election, a Preexisting Entity Account with an account balance or value that does not exceed $250,000 as of June 30, 2014, is not required to be

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reviewed, identified, or reported as a U.S. Reportable Account until the account balance or value exceeds $1,000,000.

Entity Accounts Subject to Review. A Preexisting Entity Account that has an account balance or value that exceeds $250,000 as of June 30, 2014, and a

Preexisting Entity Account that does not exceed $250,000 as of June 30, 2014 but the account balance or value of which exceeds $1,000,000 as of the last day of 2015

or any subsequent calendar year, must be reviewed in accordance with the procedures set forth in paragraph D of this section.

Entity Accounts With Respect to Which Reporting Is Required. With respect to Preexisting Entity Accounts described in paragraph B of this section, only accounts that are held by one or more Entities that are Specified U.S. Persons, or by

Passive NFFEs with one or more Controlling Persons who are U.S. citizens or residents, shall be treated as U.S. Reportable Accounts. In addition, accounts held by Non-Participating Financial Institutions shall be treated as accounts for which aggregate payments as described in subparagraph 1(b) of Article 4 of the

Agreement are reported to the Malaysian Competent Authority.

Review Procedures for Identifying Entity Accounts With Respect to

Which Reporting Is Required. For Preexisting Entity Accounts described in paragraph B of this section, the Reporting Malaysian Financial Institution must apply the following review procedures to determine whether the account is held by one or more Specified U.S. Persons, by Passive NFFEs with one or more Controlling

Persons who are U.S. citizens or residents, or by Non-Participating Financial

Institutions:

Determine Whether the Entity Is a Specified U.S. Person.

Determine Whether a Non-U.S. Entity Is a Financial Institution.

Financial Institution Payments to Which Are Subject to Aggregate

Reporting Under Subparagraph 1(b) of Article 4 of the Agreement.

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Determine Whether an Account Held by an NFFE Is a U.S.

Reportable Account. With respect to an Account Holder of a Preexisting

Entity Account that is not identified as either a U.S. Person or a Financial

Institution, the Reporting Malaysian Financial Institution must identify

Review of Preexisting Entity Accounts with an account balance or value that exceeds $250,000 as of June 30, 2014 must be completed by

June 30, 2016.

Review of Preexisting Entity Accounts with an account balance or value that does not exceed $250,000 as of June 30, 2014, but exceeds $1,000,000 as of December 31 of 2015 or any subsequent year, must be completed within six months after the last day of the calendar year in which the account balance or value exceeds $1,000,000.

If there is a change of circumstances with respect to a Preexisting Entity

Account that causes the Reporting Malaysian Financial Institution to know, or have reason to know, that the self-certification or other documentation associated with an account is incorrect or unreliable, the Reporting Malaysian

Financial Institution must redetermine the status of the account in accordance

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with the procedures set forth in paragraph D of this section.

V.

New Entity Accounts. The following rules and procedures apply for purposes of identifying U.S. Reportable Accounts and accounts held by Non-Participating

Financial Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014 (“New Entity Accounts”).

Entity Accounts Not Required to Be Reviewed, Identified or Reported.

Unless the Reporting Malaysian Financial Institution elects otherwise, either with respect to all New Entity Accounts or, separately, with respect to any clearly identified group of such accounts, where the implementing rules in Malaysia provide for such election, a credit card account or a revolving credit facility treated as a New Entity Account is not required to be reviewed, identified, or reported, provided that the Reporting Malaysian Financial Institution maintaining such account implements policies and procedures to prevent an account balance owed to the Account Holder that exceeds $50,000.

Other New Entity Accounts. With respect to New Entity Accounts not described in paragraph A of this section, the Reporting Malaysian Financial

Institution must determine whether the Account Holder is: (i) a Specified U.S.

Person; (ii) a Malaysian Financial Institution or other Partner Jurisdiction Financial

Institution; (iii) a participating FFI, a deemed-compliant FFI, or an exempt beneficial owner, as those terms are defined in relevant U.S. Treasury Regulations;

or (iv) an Active NFFE or Passive NFFE.

Financial Institution may determine that the Account Holder is an Active

NFFE, a Malaysian Financial Institution, or other Partner Jurisdiction

Financial Institution if the Reporting Malaysian Financial Institution reasonably determines that the Account Holder has such status on the basis of the Account Holder’s Global Intermediary Identification Number or other information that is publicly available or in the possession of the Reporting

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Malaysian Financial Institution, as applicable.

If the Account Holder is a Malaysian Financial Institution or other

Partner Jurisdiction Financial Institution treated by the IRS as a

Non-Participating Financial Institution, then the account is not a U.S.

Reportable Account, but payments to the Account Holder must be reported as contemplated in subparagraph 1(b) of Article 4 of the Agreement.

In all other cases, a Reporting Malaysian Financial Institution must obtain a self-certification from the Account Holder to establish the Account

Holder’s status. Based on the self-certification, the following rules apply:

AML/KYC Procedures. “AML/KYC Procedures” means the customer due diligence procedures of a Reporting Malaysian Financial Institution pursuant to the anti-money laundering or similar requirements of Malaysia to which such Reporting Malaysian Financial Institution is subject.

NFFE. An “NFFE” means any Non-U.S. Entity that is not an FFI as defined in relevant U.S. Treasury Regulations or is an Entity described in subparagraph B(4)(j) of this section, and also includes any Non-U.S. Entity that is established in Malaysia or another Partner Jurisdiction and that is not a Financial Institution.

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NFFE, or (ii) a withholding foreign partnership or withholding foreign trust pursuant to relevant U.S. Treasury Regulations.

Active NFFE. An “Active NFFE” means any NFFE that meets any of the following criteria:

Account maintained by a Reporting Malaysian Financial Institution as of

June 30, 2014.

Account Balance Aggregation and Currency Translation Rules.

Aggregation of Individual Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held by an individual, a Reporting Malaysian Financial Institution is required to aggregate all

Financial Accounts maintained by the Reporting Malaysian Financial

Institution, or by a Related Entity, but only to the extent that the Reporting

Malaysian Financial Institution’s computerized systems link the Financial

Accounts by reference to a data element such as client number or taxpayer identification number, and allow account balances or values to be aggregated.

Each holder of a jointly held Financial Account shall be attributed the entire balance or value of the jointly held Financial Account for purposes of applying the aggregation requirements described in this paragraph 1.

Aggregation of Entity Accounts. For purposes of determining the aggregate balance or value of Financial Accounts held by an Entity, a Reporting Malaysian Financial Institution is required to take into account all

Financial Accounts that are maintained by the Reporting Malaysian Financial

Institution, or by a Related Entity, but only to the extent that the Reporting

Malaysian Financial Institution’s computerized systems link the Financial

Accounts by reference to a data element such as client number or taxpayer identification number, and allow account balances or values to be aggregated.

Special Aggregation Rule Applicable to Relationship Managers.

For purposes of determining the aggregate balance or value of Financial

Accounts held by a person to determine whether a Financial Account is a High

Value Account, a Reporting Malaysian Financial Institution is also required, in the case of any Financial Accounts that a relationship manager knows, or has

P.U. (A) 278 53

reason to know, are directly or indirectly owned, controlled, or established

(other than in a fiduciary capacity) by the same person, to aggregate all such accounts.

Currency Translation Rule. For purposes of determining the balance or value of Financial Accounts denominated in a currency other than the

U.S. dollar, a Reporting Malaysian Financial Institution must convert the

U.S. dollar threshold amounts described in this Annex I into such currency using a published spot rate determined as of the last day of the calendar year preceding the year in which the Reporting Malaysian Financial Institution is determining the balance or value.

Documentary Evidence. For purposes of this Annex I, acceptable documentary evidence includes any of the following:

(for example, a government or agency thereof, or a municipality) of the jurisdiction in which the payee claims to be a resident.

With respect to an individual, any valid identification issued by an authorized government body (for example, a government or agency thereof, or a municipality), that includes the individual’s name and is typically used for identification purposes.

With respect to an Entity, any official documentation issued by an authorized government body (for example, a government or agency thereof, or a municipality) that includes the name of the Entity and either the address of its principal office in the jurisdiction (or U.S. Territory) in which it claims to be a resident or the jurisdiction (or U.S. Territory) in which the

Entity was incorporated or organized.

With respect to a Financial Account maintained in a jurisdiction with anti-money laundering rules that have been approved by the IRS in connection with a QI agreement (as described in relevant U.S. Treasury

Regulations), any of the documents, other than a Form W-8 or W-9, referenced in the jurisdiction’s attachment to the QI agreement for identifying individuals or Entities.

U.S. Securities and Exchange Commission report.

Alternative Procedures for Financial Accounts Held by Individual

Beneficiaries of a Cash Value Insurance Contract. A Reporting Malaysian

Financial Institution may presume that an individual beneficiary (other than the owner) of a Cash Value Insurance Contract receiving a death benefit is not a

Specified U.S. Person and may treat such Financial Account as other than a U.S.

Reportable Account unless the Reporting Malaysian Financial Institution has actual knowledge, or reason to know, that the beneficiary is a Specified U.S. Person.

A Reporting Malaysian Financial Institution has reason to know that a beneficiary of a Cash Value Insurance Contract is a Specified U.S. Person if the information collected by the Reporting Malaysian Financial Institution and associated with the beneficiary contains U.S. indicia as described in subparagraph (B)(1) of section II of this Annex I. If a Reporting Malaysian Financial Institution has actual knowledge, or reason to know, that the beneficiary is a Specified U.S. Person, the Reporting

Malaysian Financial Institution must follow the procedures in subparagraph B(3)

of section II of this Annex I.

Reliance on Third Parties. Regardless of whether an election is made under paragraph C of section I of this Annex I, Malaysia may permit Reporting Malaysian

Financial Institutions to rely on due diligence procedures performed by third parties, to the extent provided in relevant U.S. Treasury Regulations.

P.U. (A) 278 55

G.

Alternative Procedures for New Accounts Opened Prior to Entry Into

Force of this Agreement.

United States prior to entry into force of this Agreement that, as of

July 1, 2014, Malaysia lacked the legal authority to require Reporting

Malaysian Financial Institutions either: (i) to require Account Holders of

New Individual Accounts to provide the self-certification specified in section III of this Annex I, or (ii) to perform all the due diligence procedures related to New Entity Accounts specified in section V of this Annex I, then

Reporting Malaysian Financial Institutions may apply the alternative procedures described in subparagraph G(2) of this section, as applicable, to such New Accounts, in lieu of the procedures otherwise required under this

Annex I. The alternative procedures described in subparagraph G(2) of this section shall be available only for those New Individual Accounts or

New Entity Accounts, as applicable, opened prior to the earlier of: (i) the date

Malaysia has the ability to compel Reporting Malaysian Financial Institutions to comply with the due diligence procedures described in section III or section V of this Annex I, as applicable, which date Malaysia shall inform the

United States of in writing by the date of entry into force of this Agreement, or

Alternative Procedures.

An integral part of Malaysia means any person, organization, agency, bureau, fund, instrumentality, or other body, however designated, that constitutes a governing authority of Malaysia. The net earnings of the governing authority must be credited to its own account or to other accounts of Malaysia, with no portion inuring to the benefit of any private person. An integral part does not include any individual who is a sovereign, official, or administrator acting in a private or personal capacity.

A controlled entity means an Entity that is separate in form from

Malaysia or that otherwise constitutes a separate juridical entity, provided that:

Income does not inure to the benefit of private persons if such persons are the intended beneficiaries of a governmental program, and the program activities are performed for the general public with respect to the common welfare or relate to the administration of some phase of government. Notwithstanding the foregoing, however, income is considered to inure to the benefit of private persons if the income is derived from the use of a governmental entity to conduct a commercial business, such as a commercial banking business, that provides financial services to private persons.

International Organization. Any international organization or wholly owned agency or instrumentality thereof. This category includes any intergovernmental organization (including a supranational organization) (1)

that is comprised primarily of non-U.S. governments; (2) that has in effect a headquarters or substantially similar agreement with Malaysia; and (3) the income of which does not inure to the benefit of private persons.

Central Bank. An institution that is by law or government sanction the principal authority, other than the government of Malaysia itself, issuing instruments intended to circulate as currency. Such an institution may include an instrumentality that is separate from the government of Malaysia, whether or not owned in whole or in part by Malaysia.

II.

Funds that Qualify as Exempt Beneficial Owners. The following Entities shall be treated as Non-Reporting Malaysian Financial Institutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal Revenue Code.

Broad Participation Retirement Fund. A fund established in Malaysia to provide retirement, disability, or death benefits, or any combination thereof,

P.U. (A) 278 61

to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that the fund:

Does not have a single beneficiary with a right to more than five percent of the fund’s assets;

Is subject to government regulation and either (a) provides annual information reporting about its beneficiaries to the relevant tax authorities in Malaysia or (b) is overseen by the Ministry of Finance of

Malaysia, produces annual information statements of its beneficiaries, which are available upon request, to the relevant tax authorities in

Satisfies at least one of the following requirements:

The Financial Institution must be licensed and regulated as a financial institution under the laws of Malaysia;

The Financial Institution must have no fixed place of business outside of Malaysia. For this purpose, a fixed place of business does not include a location that is not advertised to the public and from which the

Financial Institution performs solely administrative support functions;

The Financial Institution must not solicit customers or Account

Holders outside Malaysia. For this purpose, a Financial Institution shall not be considered to have solicited customers or Account Holders outside Malaysia merely because the Financial Institution (a) operates a website, provided that the website does not specifically indicate that the

Financial Institution provides Financial Accounts or services to nonresidents, and does not otherwise target or solicit U.S. customers or

P.U. (A) 278 63

Account Holders, or (b) advertises in print media or on a radio or television station that is distributed or aired primarily within Malaysia but is also incidentally distributed or aired in other countries, provided that the advertisement does not specifically indicate that the Financial

Institution provides Financial Accounts or services to nonresidents, and does not otherwise target or solicit U.S. customers or Account Holders;

The Financial Institution must be required under the laws of

Malaysia to identify resident Account Holders for purposes of either information reporting or withholding of tax with respect to Financial

Accounts held by residents or for purposes of satisfying Malaysia’s AML due diligence requirements;

At least 98 percent of the Financial Accounts by value maintained by the Financial Institution must be held by residents (including residents that are Entities) of Malaysia;

By the later of July 1, 2014, or the date that the Financial Institution claims treatment as a deemed-compliant FFI pursuant to this paragraph

A, the Financial Institution must have policies and procedures, consistent with those set forth in Annex I, to prevent the Financial

Institution from providing a Financial Account to any Non-Participating

Financial Institution and to monitor whether the Financial Institution opens or maintains a Financial Account for any Specified U.S. Person who is not a resident of Malaysia (including a U.S. Person that was a resident of Malaysia when the Financial Account was opened but subsequently ceases to be a resident of Malaysia) or any Passive NFFE with Controlling Persons who are U.S. residents or U.S. citizens who are not residents of Malaysia;

Account held by a Specified U.S. Person who is not a resident of Malaysia

P.U. (A) 278 64

or by a Passive NFFE with Controlling Persons who are U.S. residents or

U.S. citizens who are not residents of Malaysia is identified, the Financial

Institution must report such Financial Account as would be required if the Financial Institution were a Reporting Malaysian Financial

Institution (including by following the applicable registration requirements on the IRS FATCA registration website) or close such

Financial Account;

With respect to a Preexisting Account held by an individual who is not a resident of Malaysia or by an Entity, the Financial Institution must review those Preexisting Accounts in accordance with the procedures set forth in Annex I applicable to Preexisting Accounts to identify any

U.S. Reportable Account or Financial Account held by a Non-Participating Financial Institution, and must report such Financial

Account as would be required if the Financial Institution were a Reporting Malaysian Financial Institution (including by following the applicable registration requirements on the IRS FATCA registration website) or close such Financial Account;

Institution must be incorporated or organized in Malaysia and, with the exception of any Related Entity that is a retirement fund described in paragraphs A through C of section II of this Annex II, satisfy the requirements set forth in this paragraph A; and

The Financial Institution must not have policies or practices that discriminate against opening or maintaining Financial Accounts for individuals who are Specified U.S. Persons and residents of Malaysia.

Local Bank. A Financial Institution satisfying the following requirements:

P.U. (A) 278 65

The Financial Institution operates solely as (and is licensed and regulated under the laws of Malaysia as) (a) a bank or (b) a credit union or similar cooperative credit organization that is operated without profit;

The Financial Institution’s business consists primarily of receiving deposits from and making loans to, with respect to a bank, unrelated retail customers and, with respect to a credit union or similar cooperative credit organization, members, provided that no member has a greater than five percent interest in such credit union or cooperative credit organization;

The Financial Institution satisfies the requirements set forth in subparagraphs A(2) and A(3) of this section, provided that, in addition to the limitations on the website described in subparagraph A(3) of this section, the website does not permit the opening of a Financial Account;

The Financial Institution does not have more than $175 million in assets on its balance sheet, and the Financial Institution and any Related

Entities, taken together, do not have more than $500 million in total assets on their consolidated or combined balance sheets; and

Any Related Entity must be incorporated or organized in Malaysia, and any Related Entity that is a Financial Institution, with the exception of any Related Entity that is a retirement fund described in paragraphs

A through C of section II of this Annex II or a Financial Institution with only low-value accounts described in paragraph C of this section, must satisfy the requirements set forth in this paragraph B.

Financial Institution with Only Low-Value Accounts. A Malaysian

Financial Institution satisfying the following requirements:

P.U. (A) 278 66

The Financial Institution is not an Investment Entity;

No Financial Account maintained by the Financial Institution or any Related Entity has a balance or value in excess of $50,000, applying the rules set forth in Annex I for account aggregation and currency translation; and

The Financial Institution does not have more than $50 million in assets on its balance sheet, and the Financial Institution and any Related

Entities, taken together, do not have more than $50 million in total assets on their consolidated or combined balance sheets.

Qualified Credit Card Issuer. A Malaysian Financial Institution satisfying the following requirements:

The Financial Institution is a Financial Institution solely because it is an issuer of credit cards that accepts deposits only when a customer makes a payment in excess of a balance due with respect to the card and the overpayment is not immediately returned to the customer; and

By the later of July 1, 2014, or the date that the Financial Institution claims treatment as a deemed-compliant FFI pursuant to this paragraph

D, the Financial Institution implements policies and procedures to either prevent a customer deposit in excess of $50,000, or to ensure that any customer deposit in excess of $50,000, in each case applying the rules set forth in Annex I for account aggregation and currency translation, is refunded to the customer within 60 days. For this purpose, a customer deposit does not refer to credit balances to the extent of disputed charges but does include credit balances resulting from merchandise returns.

P.U. (A) 278 67

IV.

Investment Entities that Qualify as Deemed-Compliant FFIs and Other Special

Rules. The Financial Institutions described in paragraphs A through E of this section are Non-Reporting Malaysian Financial Institutions that shall be treated as deemed-compliant FFIs for purposes of section 1471 of the U.S. Internal Revenue

Code. In addition, paragraph F of this section provides special rules applicable to an Investment Entity.

Trustee-Documented Trust. A trust established under the laws of Malaysia to the extent that the trustee of the trust is a Reporting U.S. Financial

Institution, Reporting Model 1 FFI, or Participating FFI and reports all information required to be reported pursuant to the Agreement with respect to all U.S. Reportable Accounts of the trust.

Sponsored Investment Entity and Controlled Foreign Corporation.

A Financial Institution described in subparagraph B(1) or B(2) of this section having a sponsoring entity that complies with the requirements of subparagraph B(3) of this section.

A Financial Institution is a sponsored investment entity if (a) it is an

Investment Entity established in Malaysia that is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury Regulations; and (b) an Entity has agreed with the Financial Institution to act as a sponsoring entity for the Financial Institution.

A Financial Institution is a sponsored controlled foreign corporation if (a) the Financial Institution is a controlled foreign corporation1 organized under the laws of Malaysia that is not a qualified

1 A “controlled foreign corporation” means any foreign corporation if more than 50 percent of the total combined voting power of all classes of stock of such corporation entitled to vote, or the total value of the stock of such corporation, is owned, or is considered as owned, by “United States shareholders” on any day during the taxable year of such foreign corporation. The term a “United States shareholder” means, with respect to any foreign corporation, a United States person who owns, or is considered as owning, 10 percent or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation.

P.U. (A) 278 68

intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant U.S. Treasury Regulations; (b) the Financial

Institution is wholly owned, directly or indirectly, by a Reporting U.S.

Financial Institution that agrees to act, or requires an affiliate of the

Financial Institution to act, as a sponsoring entity for the Financial

Institution; and (c) the Financial Institution shares a common electronic account system with the sponsoring entity that enables the sponsoring entity to identify all Account Holders and payees of the Financial

Institution and to access all account and customer information maintained by the Financial Institution including, but not limited to, customer identification information, customer documentation, account balance, and all payments made to the Account Holder or payee.

The sponsoring entity complies with the following requirements:

The Financial Institution is a Financial Institution solely because it is an Investment Entity and is not a qualified intermediary, withholding foreign partnership, or withholding foreign trust pursuant to relevant

U.S. Treasury Regulations;

The sponsoring entity is a Reporting U.S. Financial Institution,

Reporting Model 1 FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution (such as a professional manager, trustee, or managing partner), and agrees to perform, on behalf of the Financial

Institution, all due diligence, withholding, reporting, and other requirements that the Financial Institution would have been required to perform if it were a Reporting Malaysian Financial Institution;

The Financial Institution does not hold itself out as an investment vehicle for unrelated parties;

P.U. (A) 278 70

Interests in the Financial Institution (disregarding debt interests owned by Participating FFIs and deemed-compliant FFIs and Equity Interests owned by an Entity if that Entity owns 100 percent of the Equity

Interests in the Financial Institution and is itself a sponsored Financial

The sponsoring entity complies with the following requirements:

With respect to interests in an Investment Entity that is a collective investment vehicle described in paragraph E of this section, the reporting obligations of any Investment Entity (other than a Financial

Institution through which interests in the collective investment vehicle are held) shall be deemed fulfilled.

With respect to interests in:

Malaysia that is not described in paragraph E or subparagraph F(2) of this section, consistent with paragraph 4 of Article 5 of the Agreement, the reporting obligations of all other Investment Entities with respect to such interests shall be deemed fulfilled if the information required to be reported by the first-mentioned Investment Entity pursuant to the

Agreement with respect to such interests is reported by such

Investment Entity or another person.

V.

Accounts Excluded from Financial Accounts. The following accounts are excluded from the definition of Financial Accounts and therefore shall not be treated as U.S. Reportable Accounts.

Certain Savings Accounts.

Retirement and Pension Account. A retirement or pension account maintained in Malaysia that satisfies the following requirements under the laws of Malaysia.

Malaysia (other than an insurance or Annuity Contract) that satisfies the following requirements under the laws of Malaysia.

Periodic premiums, which do not decrease over time, are payable at least annually during the period the contract is in existence or until the insured attains age 90, whichever is shorter;

(by withdrawal, loan, or otherwise) without terminating the contract;

The amount (other than a death benefit) payable upon cancellation or termination of the contract cannot exceed the aggregate premiums paid for the contract, less the sum of mortality, morbidity, and expense charges (whether or not actually imposed) for the period or periods of the contract’s existence and any amounts paid prior to the cancellation or termination of the contract; and

The contract is not held by a transferee for value.

Account Held By an Estate. An account maintained in Malaysia that is held solely by an estate if the documentation for such account includes a copy of the deceased’s will or death certificate.

P.U. (A) 278 75

Escrow Accounts. An account maintained in Malaysia established in connection with any of the following:

A court order or judgment.

A sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements:

An obligation of a Financial Institution servicing a loan secured by real property to set aside a portion of a payment solely to facilitate the payment of taxes or insurance related to the real property at a later time.

An obligation of a Financial Institution solely to facilitate the payment of taxes at a later time.

Partner Jurisdiction Accounts. An account maintained in Malaysia and excluded from the definition of Financial Account under an agreement between the United States and another Partner Jurisdiction to facilitate the implementation of FATCA, provided that such account is subject to the same requirements and oversight under the laws of such other Partner Jurisdiction as if such account were established in that Partner Jurisdiction and maintained by a Partner Jurisdiction Financial Institution in that Partner

Jurisdiction.

VI.

Definitions. The following additional definitions shall apply to the descriptions above:

Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial

Institution with respect to which a non-U.S. government or agency thereof agrees to obtain and exchange information pursuant to a Model 1 IGA, other than a Financial Institution treated as a Non-Participating Financial

Institution under the Model 1 IGA. For purposes of this definition, the term

Model 1 IGA means an arrangement between the United States or the

Treasury Department and a non-U.S. government or one or more agencies thereof to implement FATCA through reporting by Financial Institutions to such non-U.S. government or agency thereof, followed by automatic exchange of such reported information with the IRS.

Participating FFI. The term Participating FFI means a Financial Institution that has agreed to comply with the requirements of an FFI Agreement,

P.U. (A) 278 77

including a Financial Institution described in a Model 2 IGA that has agreed to comply with the requirements of an FFI Agreement. The term Participating

FFI also includes a qualified intermediary branch of a Reporting U.S. Financial

Institution, unless such branch is a Reporting Model 1 FFI. For purposes of this definition, the term FFI Agreement means an agreement that sets forth the requirements for a Financial Institution to be treated as complying with the requirements of section 1471(b) of the U.S. Internal Revenue Code.

In addition, for purposes of this definition, the term Model 2 IGA means an arrangement between the United States or the Treasury Department and a non-U.S. government or one or more agencies thereof to facilitate the implementation of FATCA through reporting by Financial Institutions directly to the IRS in accordance with the requirements of an FFI Agreement, supplemented by the exchange of information between such non-U.S.

government or agency thereof and the IRS.

Dibuat 24 Ogos 2022

Made 24 August 2022

[MOF.TAX(S)700-2/1/147; PN(PU2)80/JLD. 107]

TENGKU DATUK SERI UTAMA ZAFRUL BIN TENGKU ABDUL AZIZ

Menteri Kewangan/

Minister of Finance

[Akan dibentangkan di

Dewan

Rakyat menurut subseksyen 132B(2)

Akta Cukai Pendapatan 1967]

[To be laid before the Dewan Rakyat pursuant to subsection 132B(2) of the

Income Tax Act 1967]