Company: TRTN-PA
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001660734-25-000004
Chunk: 18

Company: Triton International Ltd
Filing Date: 2025-02-28
Form: 20-F
Item: Item 3
Chunk 18
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 in the United States. Our U. S. subsidiaries record tax provisions in their financial statements based on current tax rates. If there was an increase in the tax rate due to changes in enacted tax laws, our tax provision and effective tax rate would increase and our results of operations would be negatively impacted.

In addition, certain of our U. S. subsidiaries historically did not pay any meaningful U. S. income taxes primarily due to the benefit they received from accelerated tax depreciation of their container investments. However, the long duration of recent leases has limited the accelerated tax depreciation benefits of container investments, and as a result, we have limited the container investments made by our U. S. subsidiaries. Reduced investment in containers by our U. S. subsidiaries or any future change in rules governing the tax depreciation for our U. S. subsidiaries' containers could further reduce or eliminate this tax benefit and further increase our U. S. subsidiaries' cash tax payments.

Our U. S. investors could suffer adverse tax consequences if we are characterized as a passive foreign investment company for U. S. federal income tax purposes.

Based upon the nature of our business activities, we may be classified as a passive foreign investment company ("PFIC") for U. S. federal income tax purposes. Such characterization could result in adverse U. S. tax consequences for direct or indirect U. S. investors in our preference shares. For example, if we are a PFIC, our U. S. investors could become subject to increased tax liabilities under U. S. tax laws and regulations and could become subject to burdensome reporting requirements. The determination of whether or not we are a PFIC is made on an annual basis and depends on the composition of our income and assets from time to time. Specifically, for any taxable year, we will be classified as a PFIC for U. S. tax purposes if either:

•75% or more of our gross income in a taxable year is passive income for purposes of the PFIC rules; or

• the average percentage of our assets (which includes cash) by value in a taxable year which produce or are held for the production of passive income is at least 50%.

Based on the composition of our income and valuation of our assets, we do not expect that we should be treated as a PFIC for the current taxable year or for the foreseeable future. However, because the PFIC determination in our case is made by taking into account all of the relevant facts and circumstances regarding our business without the benefit of clearly defined bright line rules