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claiming an exemption from or reduction of the withholding tax under the benefit of an applicable tax treaty.
interest paid to you is effectively connected with your conduct of a U.S. trade or business (and, if required by an applicable income tax treaty, you also maintain a U.S. permanent
establishment to which such interest is attributable), then, although exempt from U.S. federal withholding tax, you generally will be subject to U.S. federal income tax on such interest in the same
manner as if you were a U.S. holder. In addition, if you are a foreign corporation, such interest may be subject to a branch profits tax at a rate of 30% or lower applicable treaty rate. To claim the
exemption, you generally must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that interest paid on a note is not subject to withholding tax because it is
effectively connected with the conduct by you of a trade or business within the United States.
certifications described above must be provided to the applicable withholding agent prior to the payment of interest and generally must be updated periodically. If you do not timely
provide the applicable withholding agent with the required certification, but qualify for a reduced rate under an applicable income tax treaty, you generally may obtain a refund of any excess amounts
withheld under these rules by timely filing an appropriate claim for refund with the IRS. You should consult your tax advisors regarding your entitlement to benefits under any applicable income tax
Sale, Exchange, or Disposition of the Notes
Subject to the discussion below under " Information Reporting and Backup Withholding," any gain realized by you on the sale,
exchange, retirement, redemption, or other disposition of a note generally will not be subject to U.S. federal income tax unless:
- the gain is effectively connected with your conduct of a trade or business in the United States (and, if required by an applicable income tax
treaty, is also attributable to a permanent establishment maintained by you in the United States); or
- you are an individual who is present in the United States for 183 days or more in the taxable year of disposition and certain other
requirements are met.
you recognize gain described in the first bullet point above, you will be required to pay U.S. federal income tax on the net gain derived from the sale generally in the same manner as
if you were a U.S. holder, and if you are a foreign corporation, you may also be required to pay an additional branch profits tax at a 30% rate (or a lower rate if so specified by an applicable income
tax treaty). If you are a non-U.S. holder described in the second bullet point above, you will be subject to U.S. federal income tax at a rate of 30% (or, if applicable, a lower treaty rate) on the
gain derived from the sale or other disposition of the note, which may be offset by certain U.S. source capital losses, even though you are not considered a resident of the United States.
amount allocable to accrued and unpaid interest generally will be taxable as interest and may be subject to the rules discussed above in "Material U.S. Federal Income Tax
Consequences to Non-U.S. Holders Taxation of Interest."
should consult your tax advisor regarding potentially applicable income tax treaties that may provide for different rules.