Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 396

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 10
Chunk 396
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 or business within the United States would be less than 10% of the total net gain, or (2) no gain would have been effectively connected with the conduct of a trade or business in the United States.

Based on the intention of the BBU General Partner to use commercially reasonable efforts to structure our activities to avoid the realization by our company of income treated as effectively connected with a U. S. trade or business, the BBU General Partner has provided and intends to continue to provide timely qualified notices on a quarterly basis certifying that the 10-percent exception applies, so that no withholding under Section 1446(f) of the U. S. Internal Revenue Code applies to a Non-U. S. Holder’s sale or other disposition of our units effected through a broker or to any distributions on our units.

However, there can be no assurance that the law will not change or that the IRS will not deem our company to be engaged in a U. S. trade or business. If, contrary to the BBU General Partner’s expectations, our company is treated as engaged in a U. S. trade or business, then a Non-U. S. Holder generally would be required to file a U. S. federal income tax return, even if no effectively connected income were allocable to it. If our company were to have income treated as effectively connected with a U. S. trade or business, then a Non-U. S. Holder would be required to report that income and would be subject to U. S. federal income tax at the regular graduated rates. In addition, the amount of a distribution to a Non-U. S. Holder attributable to such effectively connected income generally would be subject to withholding at the highest applicable effective tax rate. A corporate Non-U. S. Holder might also be subject to branch profits tax at a rate of 30%, or at a lower treaty rate, if applicable. If, contrary to expectation, our company were engaged in a U. S. trade or business, then gain or loss from the sale of our units by a Non-U. S. Holder would be treated as effectively connected with such trade or business to the extent that such Non-U. S. Holder would have had effectively connected gain or loss had our company sold all of its assets at their fair market value as of the date of such sale. In such case, any such effectively connected gain generally would be taxable at the regular graduated U. S. federal income tax rates, and the amount realized from any such sale by a Non