Company: RWT-PA
Filing Date: 2025-01-15
Form Type: 424B5
Source: 0001104659-25-003632
Chunk: 123

Company: REDWOOD TRUST INC
Filing Date: 2025-01-15
Form: 424B5
Chunk 123
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 required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United
States to which such dividends are attributable). Under certain treaties, however, lower withholding rates generally applicable to dividends
do not apply to dividends from a REIT. In addition, any portion of the dividends paid to Non-U.S. Holders that are treated as excess
inclusion income will not be eligible for exemption from the 30% withholding tax or a reduced treaty rate. See “Material U.S. Federal
Income Tax Considerations—Taxation of the Company—Excess Inclusion Income.” Certain certification and disclosure requirements
must be satisfied for a Non-U.S. Holder to be exempt from withholding under the effectively connected income exemption. Dividends that
are treated as effectively connected with a U.S. trade or business (through a U.S. permanent establishment, where applicable) generally
will not be subject to withholding but will be subject to U.S. federal income tax on a net basis at the regular rates, in the same manner
as dividends paid to U.S. Holders are subject to U.S. federal income tax. Any such dividends received by a Non-U.S. Holder that is a
corporation may also be subject to an additional branch profits tax at a 30% rate (applicable after deducting U.S. federal income taxes
paid on such effectively connected income) or such lower rate as may be specified by an applicable income tax treaty.

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Except as otherwise provided
below, we expect to withhold U.S. federal income tax at the rate of 30% on any distributions made to a Non-U.S. Holder unless:

| · | a lower treaty                                                                                                               
 rate applies and the Non-U.S. Holder furnishes an IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) evidencing 
 eligibility for that reduced treaty rate; or                                                                                 |

| · | the Non-U.S.                                                                                                                 
 Holder furnishes an IRS Form W-8ECI (or other applicable documentation) claiming that the distribution is income effectively 
 connected with the Non-U.S. Holder’s trade or business.                                                                      |

Distributions in excess of
our current and accumulated earnings and profits will not be taxable to a Non-U.S. Holder to the extent that such distributions do not
exceed the adjusted tax basis of the holder’s shares of our capital stock, but rather will reduce the adjusted tax basis of such