Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 444

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 10
Chunk 444
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-U. S. corporations held by BEP or BRELP. If, at the time of such contribution, BEP were to have liabilities in excess of the tax basis of its assets, U. S. Holders generally would recognize gain in respect of such excess liabilities upon the deemed transfer. Thereafter, BEP would be treated as a corporation for U. S. federal income tax purposes.

If BEP were treated as a corporation in any taxable year, either as a result of a failure to meet the Qualifying Income Exception, an election by the Managing General Partner or otherwise, BEP’s items of income, gain, loss, deduction, or credit would be reflected only on BEP’s tax return rather than being passed through to LP unitholders, and BEP would be subject to U. S. corporate income tax and potentially branch profits tax with respect to its income, if any, effectively connected with a U. S. trade or business. Moreover, under certain circumstances, BEP might be classified as a PFIC for U. S. federal income tax purposes, and a U. S. Holder would be subject to the rules applicable to PFICs discussed below. See “ - Consequences to U. S. Holders - Passive Foreign Investment Companies”. Subject to the PFIC rules, distributions made to U. S. Holders would be treated as taxable dividend income to the extent of BEP’s current or accumulated earnings and profits. Any distribution in excess of current and accumulated earnings and profits would first be treated as a tax-free return of capital to the extent of a U. S. Holder’s adjusted tax basis in its LP units. Thereafter, to the extent such distribution were to exceed a U. S. Holder’s adjusted tax basis in its LP units, the distribution would be treated as gain from the sale or exchange of such LP units. The amount of a distribution treated as a dividend could be eligible for reduced rates of taxation, provided certain conditions are met. In addition, dividends, interest and certain other passive income received by BEP with respect to U. S. investments generally would be subject to U. S. withholding tax at a rate of 30% (although certain Non-U. S. Holders nevertheless might be entitled to certain treaty benefits in respect of their allocable share of such income), and U. S. Holders would not be allowed a tax credit with respect to any such tax withheld. In addition, the “portfolio interest” exemption would not apply to certain interest income of