us-internal-revenue-code

U.S. Internal Revenue Code §6045B Tax Reporting

The AES Corporation ("AES") initiated a quarterly cash distribution to public shareholders of AES common stock beginning on November 15, 2012.

Effective January 1, 2011, issuers of corporate stock must report corporate actions that affect stock basis, including but not limited to mergers, stock splits, stock dividends, recapitalizations and common stock distributions paid in excess of "earnings and profits", as defined by the US Internal Revenue Code.

The tax treatment of AES' distributions characterized as "dividends" or "returns of capital" are generally reported to U.S. shareholders on Form 1099 mailed to U.S. shareholders by January 31st in the year following any distributions. Additionally, distributions characterized as "return of capital" require AES to post on its website Form 8937 reflecting the impact on a shareholder's tax basis for each distribution made. The determination of AES' earnings and profits, and hence whether a distribution is treated as dividend vs. return of capital, is not made until after the end of the fiscal year.

This information is intended to meet the requirements of public disclosure pursuant to Treasury Regulation §1.6045B-1 (a) (3) and (b) (4) for AES. Pursuant to the applicable Treasury Regulations, if AES assumptions turn out to be incorrect, AES will file a corrected Form 8937 within 45 days of such determination.

2017 Distributions

AES expects to make quarterly distributions on or around February 15, 2016, May 15, 2016, August 15, 2016, and November 15, 2016. As stated above, because AES’ earnings and profits is not determined until after the end of the fiscal year, it cannot be currently determined whether AES’ 2017 distributions will be treated as dividend vs. return of capital. As such, AES will make required disclosures related to its 2017 distributions as prescribed by applicable Treasury Regulations.

Should you have any further questions, please contact Ahmed Pasha at 703.682.6451 or invest@aes.com.

You should consult your tax advisor regarding the applicable tax consequences to you in connection with any of these distributions under the laws of the United States (federal, state and local), and any other applicable non-U.S. Jurisdiction.

2016 Distributions

For U.S. Tax purposes only, AES’ 2016 distributions to its shareholders on February 16, 2016, May 16, 2016, August 15, 2016, and November 15, 2016 are classified under the U.S. Internal Revenue Code as follows:

  • 100% is a nontaxable return of capital and reduction of a U.S. shareholder’s tax basis, to the extent of a U.S. shareholder’s tax basis in each of its AES common shares, with any remaining amount being taxed as capital gain.

2015 Distributions

For U.S. tax purposes only, AES' 2015 distributions to its shareholders on February 17, 2015, May 15, 2015, August 17, 2015, and November 16, 2015 are classified under the U.S. Internal Revenue Code as follows:

  • 100% is a nontaxable return of capital and reduction of a U.S. shareholder’s tax basis, to the extent of a U.S. shareholder’s tax basis in each of its AES common shares, with any remaining amount being taxed as capital gain. Pursuant to applicable Treasury Regulations, a completed Form 8937 is available for download below.

2014 Distributions

For U.S. tax purposes only, AES' 2014 distributions to its shareholders on February 18, 2014, May 14, 2014, August 15, 2014, and November 17, 2014 are classified under the U.S. Internal Revenue Code as follows:

  • 100% is a nontaxable return of capital and reduction of a U.S. shareholder’s tax basis, to the extent of a U.S. shareholder’s tax basis in each of its AES common shares, with any remaining amount being taxed as capital gain. Pursuant to applicable Treasury Regulations, a completed Form 8937 is available for download below.

2013 Distributions

For U.S. tax purposes only, AES' 2013 distributions to its shareholders on February 15, 2013, May 15, 2013, August 15, 2013, and November 15, 2013 are classified under the U.S. Internal Revenue Code as follows:

  • 100% is a nontaxable return of capital and reduction of a U.S. shareholder’s tax basis, to the extent of a U.S. shareholder’s tax basis in each of its AES common shares, with any remaining amount being taxed as capital gain.

Pursuant to applicable Treasury Regulations, a completed Form 8937 is available for download below

2012 Distributions

For U.S. tax purposes only, AES' 2012 distribution to its shareholders on November 15, 2012 is classified under the U.S. Internal Revenue Code as follows:

  • 100% is a nontaxable return of capital and reduction of a U.S. shareholder's tax basis, to the extent of a U.S. shareholder's tax basis in each of its AES common shares, with any remaining amount being taxed as capital gain.

Pursuant to applicable Treasury Regulations, a completed Form 8937 is available for download below.

 

Should you have any further questions, please contact Ahmed Pasha at 703.682.6451 or invest@aes.com.

You should consult your tax advisor regarding the applicable tax consequences to you in connection with any of these distributions under the laws of the United States (federal, state and local), and any other applicable non-U.S. jurisdiction.

Contact Investor Relations

Please contact the AES Investor Relations Team with any questions:

The AES Corporation Investor Relations 4300 Wilson Boulevard Arlington, VA 22203 703-682-6399 invest@aes.com
Ahmed Pasha Vice President Investor Relations 703-682-6451 ahmed.pasha@aes.com
Vincent Sipowicz Director Investor Relations 703-682-6476 vincent.sipowicz@aes.com
Amy Ackerman Manager Investor Relations 703-682-6399 amy.ackerman@aes.com