Tax Treatment of Dividends
: Common share and preferred share distributions paid to U.S. shareholders should be treated as fully taxable.
This reporting complies in aggregate with U.S. tax reporting under Section 6045B of the Internal Revenue Code and is based on information available to date.
Withholding Tax on Dividends:
Under Canadian domestic law, dividends paid by Brookfield Office Properties. to a non-resident shareholder are subject to 25% withholding tax. Generally, the Canada – U.S. Income Tax Treaty will reduce the rate of dividend withholding tax from 25% down to 15% for a resident of the United States. Where the U.S. resident owns the shares of Brookfield Office properties. in a 401K or similar plan, the Canada – U.S. Income Tax Treaty will reduce the rate of dividend withholding tax to nil.
: Common and preferred share distributions are treated as taxable dividends from a Canadian corporation. Individuals resident in Canada are entitled to an enhanced dividend tax credit on "eligible dividends" received in 2012 and subsequent years.
Eligible Dividend Information
For purposes of the enhanced dividend tax credit rules contained in the Income Tax Act (Canada) and any corresponding provincial and territorial tax legislation, all dividends (and deemed dividends) paid by Brookfield Office Properties to Canadian residents on our common and preferred shares in 2012 and thereafter are designated as "eligible dividends." Unless stated otherwise, all dividends (and deemed dividends) are designated as "eligible dividends" for the purposes of these rules.
CST Trust Company
P.O. Box 700
Montreal, Quebec, H3B 3K3
2001 University Street
Montreal, Quebec, H3A 2A6
Tel:1-800-387-0825 or 416-682-3860