Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 69

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 69
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 sources outside the United States and passive category income for U.S. foreign tax credit limitation purposes. The rules governing U.S. foreign tax credits are complex. Prospective purchasers of Notes should
consult their tax advisors regarding the availability of U.S. foreign tax credits in their particular circumstances.

Sale, Exchange, Retirement, Redemption or Other Taxable Disposition of a Note

Upon the sale, exchange, retirement, redemption or other taxable
disposition of a Note, a U.S. Holder generally will recognize gain or loss equal to the difference, if any, between the amount realized on such disposition (other than amounts received that are attributable to accrued but unpaid interest, which
amounts will be taxable as ordinary income to the extent not previously included in income) and such U.S. Holder’s adjusted tax basis in the Note, which generally is its cost. Such gain or loss generally will constitute capital gain or
loss and generally will be long-term capital gain or loss if the Note was held by such U.S. Holder for more than one year. Net long-term capital gain of non-corporate U.S. Holders, including
individuals, is generally eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations.

Gain or
loss recognized by a U.S. Holder generally will be treated as U.S. source income or loss for foreign tax credit purposes. Prospective investors should consult their own tax advisors as to the foreign tax credit implications of such taxable
disposition of a Note.

S-49

Additional Tax on Investment Income

Certain U.S. Holders who are individuals, estates or trusts and whose income exceeds certain thresholds generally will be required to pay
an additional 3.8 percent tax on all or a portion of their “net investment income,” which includes, among other things, interest income and capital gains from the sale or other taxable disposition (including retirement or
redemption) of a Note, subject to certain limitations and exceptions. Prospective U.S. Holders should consult their own tax advisors regarding the application of this additional tax to their investment in the Notes.

Information Reporting and Backup Withholding

In general, payments of interest and principal on and the proceeds from sales of Notes held by a U.S. Holder may be required to be
reported to the IRS unless the U.S. Holder is a corporation or other exempt recipient and, when required, demonstrates this fact. In addition, a U.S. Holder that is not an exempt recipient may be subject to backup withholding of