Company: BPOPM
Filing Date: 2025-03-03
Form Type: 10-K
Source: 0001193125-25-043848
Chunk: 30

Company: POPULAR, INC.
Filing Date: 2025-03-03
Form: 10-K
Item: Item 1
Chunk 30
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 result in a material adverse change
to the bank holding company’s capital structure.
The
Federal Reserve
Board
also restricts
the
ability of
banking
organizations to
conduct stock
repurchases. In
certain 
circumstances, a banking organization’s repurchases
of its common stock may
be subject to a
prior approval or notice requirement 
under other regulations or policies of the Federal Reserve. Any redemption or
repurchase of preferred stock or subordinated debt is 
subject to the prior approval of the Federal Reserve. 
Subject to compliance with certain conditions, distributions of U.S. sourced dividends to a corporation organized under
the 
laws
of the
Commonwealth of
Puerto Rico
are subject
to
a withholding
tax
of 10%
instead of
the 30%
applied to
other “foreign” 
corporations. Accordingly, dividends from current or accumulated earnings and profits
paid by PNA to Popular, Inc. sourced from the 
U.S. operations of PB are subject to a 10% tax withholding.
A corporation organized under the laws of the Commonwealth of Puerto 
Rico that is engaged in a U.S. trade or business is generally subject to a branch profits tax of 30% on its earnings and profits
for the 
taxable year that are “effectively connected” with
such U.S. trade or business, adjusted as
provided by U.S. federal income tax law. 
Accordingly,
to
the extent
BPPR’s
U.S. operations
generate effectively
connected earnings
and profits
that
are not
reinvested in 
such U.S. operations
(and that are
not otherwise adjusted
as provided by
U.S. federal income tax
law), such effectively
connected 
earnings and profits will generally be subject
to a branch profits tax of 30%.
Refer to
Part II,