Company: CIO
Filing Date: 2025-09-08
Form Type: DEFM14A
Source: 0001193125-25-198418
Chunk: 105

Company: City Office REIT, Inc.
Filing Date: 2025-09-08
Form: DEFM14A
Chunk 105
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 U.S. federal income tax on such gain on a net basis in the same manner as a U.S. holder (and the non-U.S. holder would generally be required to file a U.S. federal
income tax return reporting such income). In addition, a non-U.S. holder that is a corporation may be subject to the 30% branch profits tax (or such lower rate as may be specified by an applicable
income tax treaty) on such effectively connected gain described in clause (1) of the previous paragraph.

A non-U.S. holder who is an individual present in the United States for 183 days or more in the taxable year
of the Merger and who meets certain other requirements will be subject to a flat 30% tax on the gain derived from the Merger, which may be offset by U.S. source capital losses. In addition,
the non-U.S. holder may be subject to applicable alternative minimum taxes.

If a non-U.S. holder’s shares constitute United States real property interests under FIRPTA, any gain recognized by such holder in the Merger will be treated as income effectively connected with the
conduct of a U.S. trade or business of the non-U.S. holder and generally will be subject to U.S. federal income tax on a net basis in the same manner as a U.S. holder (and the non-U.S. holder would generally be required to file a U.S. federal income tax return reporting such income). A non-U.S. holder’s shares of common
stock generally will not constitute U.S. real property interests if either (1) we are a “domestically controlled qualified investment entity” at the Effective Time, or (2) both (a) shares of our Common Stock are treated as
regularly traded on an established securities market at the date of the Merger and (b) the non-U.S. holder has held 10% or less of the total fair market value of that class of shares at all
times during the shorter of (i) the five-year period ending with the 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

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Effective Time if non-U.S. holdersheld directly or indirectly less