658 Acta Apostolicae Sedis - Commentarium Officiale

ternal Revenue Code, Holy See or Vatican City State retirement plans described in Annex II. For this purpose, a Holy See or Vatican City State retirement plan includes an Entity established or located in, and regulated by, the Holy See or the Vatican City State, or a predetermined contractual or legal arrangement, oper- ated to provide pension or retirement benefits or earn income for providing such benefits under the laws of the Holy See or the Vatican City State and regulated with respect to contributions, distributions, reporting, sponsorship, and taxation.

4. Identification and Treatment of Other Deemed-Compliant FFIs and Ex- empt Beneficial Owners. The United States shall treat each Non-Reporting HS/VCS 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.

5. Special Rules Regarding Related Entities and Branches That Are Non- participating Financial Institutions. If a HS/VCS 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 Enti- ty or branch that is treated as a Nonparticipating Financial Institution solely due to the expiration of the transitional rule for limited FFIs and limited branches un- der relevant U.S. Treasury Regulations, such HS/VCS 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 appropri- ate, for purposes of section 1471 of the U.S. Internal Revenue Code, provided that:

a) the HS/VCS Financial Institution treats each such Related Entity or branch as a separate Nonparticipating Financial Institution for purposes of all the reporting and withholding requirements of this Agreement and each such Related Entity or branch identifies itself to withholding agents as a Nonparticipating Financial Institution;

b) each such Related Entity or branch identifies its U.S. accounts and reports the information with respect to those accounts as required under section 1471 of the U.S. Internal Revenue Code to the extent permitted under the relevant laws pertaining to the Related Entity or branch; and

c) such Related Entity or branch does not specifically solicit U.S. accounts held by persons that are not resident in the jurisdiction where such Related Entity or branch is located or accounts held