Company: EUO
Filing Date: 2025-03-28
Form Type: 424B3
Source: 0001193125-25-065647
Chunk: 118

Company: ProShares Trust II
Filing Date: 2025-03-28
Form: 424B3
Chunk 118
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 then such shareholder’s share of any income and any gains realized upon the sale or exchange of Shares will be subject to U.S. federal income tax at the graduated rates applicable to U.S. citizens and residents and domestic corporations. Non-U.S. Shareholders that are corporations may also be subject to a 30% U.S. branch profits tax (or lower treaty rate, if applicable) on their effectively connected earnings and profits that are not timely reinvested in a U.S. trade or business. If a Fund has any “effectively connected income,” then the purchaser or transferee of Shares would be generally required to withhold a 10% tax on the “amount realized” by the non-U.S. Shareholder on the sale or exchange of Shares, unless the transferor certifies that it is not a non-U.S. person. However, the U.S. Department of the Treasury and the IRS had suspended these rules for transfers of certain publicly traded partnership interests, including transfers of our common units, that occurred before January 1, 2023. Such withholding is currently required on open market transactions occurring, but in the case of a transfer made through a broker, the obligation to withhold is generally imposed on the transferor’s broker. The Sponsor to a Fund has posted a Qualified Notice in accordance with Regulation Section 1.1446(f)-4(b)(3)(iii) which provides that the “10-percent exception” under Regulation Section 1.1446(f)-4(b)(3)(ii) applies to a Fund. Accordingly, brokers may be able (but are not required) to rely on such notice to not withhold under Section 1446(f) on a transfer of Shares by a non-U.S. Shareholder. The Sponsor intends to periodically post an updated Qualified Notice in accordance with the applicable Regulations. The Sponsor, given the investment objectives of a Fund, expects the “10-percent exception” to be available to a Fund to be able to post a Qualified Notice. The “10-percent exception” may not always be available.

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To the extent any interest income allocated to a non-U.S. Shareholder is considered “portfolio interest,” generally neither the allocation of such interest income to the non-U.S. Shareholder nor a subsequent distribution of such interest income to the non-U.S. Shareholder will be subject to withholding, provided that the non-U.S. Shareholder is not otherwise engaged in a trade or business in the United States and provides the relevant Fund with a timely and properly completed and executed IRS