8-KOther Events

DIGITAL REALTY TRUST, INC. 8-K Report, Corporate Update (May 6, 2010)

Filed May 6, 2010For Securities:DLRDLR-PJDLR-PKDLR-PL

Summary

Digital Realty Trust, Inc. (DLR) filed a Form 8-K on May 6, 2010, to supplement its disclosures regarding U.S. federal income tax considerations for its stockholders. The filing specifically addresses two pieces of new legislation that could impact investors, particularly those with foreign accounts or non-U.S. status, or individuals owning stock. The primary focus is on new legislation concerning foreign accounts, which may impose a 30% withholding tax on dividends and sale proceeds paid to foreign financial institutions and other non-U.S. entities that do not comply with diligence and reporting requirements. This legislation is slated to take effect after December 31, 2012. Additionally, the report notes that the Health Care and Education Reconciliation Act of 2010 introduces a potential 3.8% additional tax for certain individual U.S. stockholders on dividends and capital gains, also effective for taxable years beginning after December 31, 2012. Investors are strongly advised to consult their tax advisors for personalized guidance on these matters.

Key Highlights

  • 1The 8-K filing supplements existing tax information for Digital Realty Trust, Inc. stockholders.
  • 2It addresses new legislation related to foreign account tax compliance (FATCA-like provisions) that could result in a 30% withholding tax on dividends and sale proceeds for non-compliant foreign entities.
  • 3This withholding tax applies to payments made after December 31, 2012.
  • 4The filing also highlights the Health Care and Education Reconciliation Act of 2010.
  • 5This act imposes a potential additional 3.8% tax on dividends and capital gains for certain individual U.S. stockholders.
  • 6The additional 3.8% tax applies to taxable years beginning after December 31, 2012.
  • 7Investors are urged to consult with their tax advisors regarding the impact of these new tax laws.

Frequently Asked Questions

The main purpose of this 8-K filing is to provide supplemental information to Digital Realty Trust, Inc. stockholders concerning new U.S. federal income tax legislation that could affect their investments. It supersedes previously provided tax information in a prior 8-K dated March 24, 2010.

The new legislation may impose a 30% withholding tax on dividends and gross proceeds from the sale or disposition of Digital Realty Trust, Inc.'s common stock if paid to foreign financial institutions or certain other non-U.S. entities that fail to meet specific diligence and reporting requirements. This rule is set to apply to payments made after December 31, 2012.

The additional 3.8% tax, introduced by the Health Care and Education Reconciliation Act of 2010, could affect certain U.S. stockholders who are individuals, estates, or trusts. It applies to dividends and capital gains from the sale or disposition of stock for taxable years beginning after December 31, 2012.

This filing is primarily informational, providing an update on potential future tax implications. However, it is strongly recommended that all investors, especially those with foreign accounts, non-U.S. status, or who are individual U.S. stockholders, consult with their own tax advisors to understand how these legislative changes might impact their specific tax situation.