Company: CIO
Filing Date: 2025-08-22
Form Type: PREM14A
Source: 0001193125-25-186443
Chunk: 105

Company: City Office REIT, Inc.
Filing Date: 2025-08-22
Form: PREM14A
Chunk 105
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 Effective Time and (ii) the non-U.S. holder’s holding period for the shares. As discussed above, we believe that
our Common Stock will be regularly traded on an established securities market. A “qualified investment entity” includes a REIT. Assuming we qualify as a REIT, we will be a “domestically controlled qualified investment entity”
at the

66

Effective Time if non-U.S. holdersheld directly or indirectly less than 50% in value of our stock at all times during the five-year period ending with the Effective Time. While we believe that we have been and currently are “domestically controlled” as of the date of this proxy statement, no assurances can be given that the actual ownership of our shares has been or will be sufficient for us to qualify as a “domestically controlled qualified investment entity” at the Effective Time. Income Tax Treaties If a non-U.S. holderis eligible for treaty benefits under an income tax treaty with the United States, the non-U.S. holdermay be able to reduce or eliminate certain of the U.S. federal income tax consequences discussed above, such as the branch profits tax. Non-U.S. holdersshould consult their tax advisor regarding possible relief under an applicable income tax treaty. U.S. Withholding Tax As described above, it is not entirely clear whether the receipt of the Common Stock Merger Consideration by a non-U.S. holderwill be treated as a sale or exchange of our Common Stock (in the event Notice 2007-55 doesnot apply) or as a distribution from us that is attributable to gain from the deemed sale of our United States real property interests in the Merger (in the event Notice 2007-55 doesnot apply). Accordingly, we intend to withhold U.S. federal income tax at a rate of 21% from the portion of the Common Stock Merger Consideration that is, or is treated as, attributable to gain from the sale of United States real property interests and paid to a non-U.S. holderunless such holder qualifies for the 10% exception described above. A non-U.S. holdermay be entitled to a refund or credit against the holder’s U.S. federal income tax liability, if any, with respect to any amount withheld pursuant to FIRPTA; provided, that the required information is furnished to the IRS on a timely basis. Non-U.S. holdersshould consult their tax advisors regarding withholding tax considerations. Information Reporting and Backup Withholding Backup withholding, currently at a rate of