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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
1AB
2AC
3ACP
4ARES-A
5ARLP
6BAR
7BBU
8BEP
9BEP-A
10BIP
11BIP-A
12BIP-B
13BITW
14BKEPP
15BPYPM
16BPYPN
17BPYPO
18BPYPP
19BSM
20CAPL
21CCAP
22CCLP
23CEQP
24CEQP-
25CHKR
26CLMT
27CQP
28DBA
29DBB
30DBC
31DBE
32DBO
33DBP
34DBS
35DBV
36DCP
37DCP-B
38DCP-C
39DGL
40DKL
41DMLP
42ECTM
43EFSH
44EMESQ
45EPD
46ESBA
47ET
48FGPR
49FISK
50FTAI
51FTAIN
52FTAIO
53FTAIP
54FUN
55GBLI
56GCC
57GEL
58GHI
59GLP
60GLP-A
61GLP-B
62GPP
63GRP.U
64GYRO
65HCRSQ
66HEP
67IDIV
68IEP
69KKR
70LAZ
71LMRKN
72LMRKO
73LMRKP
74LRE
75MMLP
76MMP
77MPLX
78NEN
79NGL
80NGL-B
81NGL-C
82NRP
83NS
84NSLPQ
85OAK-A
86OAK-B
87OGCP
88OZ
89PAA
90RGP
91SDRMU
92SDTTU
93SGH
94SIRE
95SMLP
96SNMP
97SPH
98SPLP
99SPLP-A
100SUN
101UAN
102UDN
103USAC
104USDP
105UUP
106WES
107WLKP
108WPG
109TXO

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.