Company: BPYPN
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001545772-25-000008
Chunk: 191

Company: Brookfield Property Partners L.P.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 191
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 the law will not change or that the IRS will not deem BPY or New LP to be engaged in a U. S. trade or business. If, contrary to the BPY General Partner’s and New LP General Partner’s expectations, BPY or New LP is treated as engaged in a U. S. trade or business, then a Non-U. S. Holder of Preferred Units or New LP Preferred Units, as applicable, generally would be required to file a U. S. federal income tax return, even if no effectively connected income were allocable to the Non-U. S. Holder. In addition, distributions to the Non-U. S. Holder might be treated as “effectively connected income” (which would subject the holder to U. S. net income taxation) and might be subject to withholding tax imposed at the highest effective tax rate applicable to the Non-U. S. Holder. If the amount of withholding were to exceed the amount of U. S. federal income tax actually due, the Non-U. S. Holder might be required to file a U. S. federal income tax return in order to seek a refund of such excess. 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. Guaranteed payments paid or accrued within BPY’s or New LP’s taxable year might be included as income to applicable Non-U. S. Holders, whether or not a distribution of such payments had actually been made. If, contrary to expectation, BPY or New LP were treated as engaged in a U. S. trade or business, then gain or loss from the sale of Preferred Units or New LP Preferred Units (as applicable) by a Non-U. S. Holder generally would be treated as effectively connected with such trade or business to the extent that the Non-U. S. Holder would have had effectively connected gain or loss had the applicable partnership sold all of its assets at their fair market value as of the date of the 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-U. S. Holder, as well as the amount of any distribution on Preferred Units or New LP Preferred Units exceeding the cumulative net income of BPY or New LP, respectively, generally would be subject to the 10% U. S. federal withholding tax under Section 1446(f) of