Company: BBU
Filing Date: 2025-04-10
Form Type: 20-F
Source: 0001628280-25-017216
Chunk: 395

Company: Brookfield Business Partners L.P.
Filing Date: 2025-04-10
Form: 20-F
Item: Item 10
Chunk 395
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 the Holding LP of income treated as effectively connected with a U. S. trade or business. If, as anticipated, our company is not treated as engaged in a U. S. trade or business or as deriving income which is treated as effectively connected with a U. S. trade or business, and provided that a Non-U. S. Holder is not itself engaged in a U. S. trade or business, then such Non-U. S. Holder generally will not be subject to U. S. tax return filing requirements solely as a result of owning our units and generally will not be subject to U. S. federal income tax on its allocable share of our company’s interest and dividends from non-U. S. sources or gain from the sale or other disposition of securities or real property located outside of the United States.

  Brookfield Business Partners      215  

In addition, if, as anticipated, our company is not engaged in a U. S. trade or business, the amount realized by a Non-U. S. Holder upon the disposition of our units generally will not be subject to U. S. federal income tax, including U. S. federal withholding tax. Under Section 1446(f) of the U. S. Internal Revenue Code, the transferee of an interest in a partnership that is engaged in a U. S. trade or business generally is required to withhold 10% of the amount realized by the transferor, unless the transferor certifies that it is not a foreign person. In the case of a transfer of an interest in a publicly traded partnership effected through a broker, the broker bears the primary responsibility for such withholding. Moreover, if Section 1446(f) of the U. S. Internal Revenue Code applies, a broker may be required to withhold 10% of the amount of a distribution exceeding a publicly traded partnership’s cumulative net income. However, under Treasury Regulations, no withholding is required if the broker properly relies on a certification made by a publicly traded partnership in a “qualified notice” that the “10-percent exception” applies. The 10-percent exception applies to a transfer of a publicly traded interest in a publicly traded partnership if: (i) the publicly traded partnership was not engaged in a U. S. trade or business at any time during a specified period of time; or (ii) upon a hypothetical sale of the publicly traded partnership’s assets at fair market value, (1) the amount of net gain that would have been effectively connected with the conduct of a trade