Withholding Tax on Publicly Traded Partnerships (PTP) Securities and Trading Arrangements

Pursuant to Internal Revenue Code (IRC) Sections 1446(a) and 1446(f) of the US Internal Revenue Service (IRS), from January 1, 2023, holdings, trading, or transfers of Publicly Traded Partnership (PTP) securities by a non-US person shall be subject to the following withholding tax:

● Sales, trading, or transfers of PTP securities shall be subject to a withholding tax equal to 10% of the transaction amount;

● Dividends from PTP securities shall be subject to a withholding tax equal to 37% (applicable to individual investors) or 21% (applicable to companies or institutional investors) of the dividends.

● Exemption from withholding may apply if a PTP releases a public statement called a "Qualified Notice" to indicate that the PTP meets the requirements of IRC Sec. 1446(f)-4(b)(3) to be exempt from withholding.

Considering the complexity of withholding tax, Moomoo AU has decided to make the following trading arrangements (which may be adjusted from time to time based on the latest developments):

● From December 5, 2022, we will stop accepting transfers of PTP securities into Moomoo AU. You can still transfer PTP securities out of Moomoo AU without transfer fees.

● From December 12, 2022, opening positions in PTP securities will not be supported.

● From December 26, 2022, closing positions in PTP securities will not be supported, with the last trading day being December 23, 2022.

References:

● IRS Requirements on PTP Products

● IRS Regulations on the Withholding Tax on PTP Transactions

You can find PTP securities by:

● List of PTP Securities

● searching results on the moomoo app

List of PTP Securities:

This list identifies PTP securities which will be subject to withholding under IRC Sec. 1446(f) unless a "Qualified Notice" exemption is applicable at the time of the sale.

No.	Symbol
1	AB
2	AC
3	ACP
4	ARES-A
5	ARLP
6	BAR
7	BBU
8	BEP
9	BEP-A
10	BIP
11	BIP-A
12	BIP-B
13	BITW
14	BKEPP
15	BPYPM
16	BPYPN
17	BPYPO
18	BPYPP
19	BSM
20	CAPL
21	CCAP
22	CCLP
23	CEQP
24	CEQP-
25	CHKR
26	CLMT
27	CQP
28	DBA
29	DBB
30	DBC
31	DBE
32	DBO
33	DBP
34	DBS
35	DBV
36	DCP
37	DCP-B
38	DCP-C
39	DGL
40	DKL
41	DMLP
42	ECTM
43	EFSH
44	EMESQ
45	EPD
46	ESBA
47	ET
48	FGPR
49	FISK
50	FTAI
51	FTAIN
52	FTAIO
53	FTAIP
54	FUN
55	GBLI
56	GCC
57	GEL
58	GHI
59	GLP
60	GLP-A
61	GLP-B
62	GPP
63	GRP.U
64	GYRO
65	HCRSQ
66	HEP
67	IDIV
68	IEP
69	KKR
70	LAZ
71	LMRKN
72	LMRKO
73	LMRKP
74	LRE
75	MMLP
76	MMP
77	MPLX
78	NEN
79	NGL
80	NGL-B
81	NGL-C
82	NRP
83	NS
84	NSLPQ
85	OAK-A
86	OAK-B
87	OGCP
88	OZ
89	PAA
90	RGP
91	SDRMU
92	SDTTU
93	SGH
94	SIRE
95	SMLP
96	SNMP
97	SPH
98	SPLP
99	SPLP-A
100	SUN
101	UAN
102	UDN
103	USAC
104	USDP
105	UUP
106	WES
107	WLKP
108	WPG
109	TXO

You can also find the List of PTP Securities by searching on the moomoo app.

Disclaimer：

It is not an exhaustive list of all PTP securities that are in scope for Section 1446(f). The list may be subject to change from time to time without prior notice.

If you hold PTP securities or derivatives, we would advise you to consult tax advisors on the potential impacts and trading arrangements.

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