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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 SG 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 SG. You can still transfer PTP securities out of Moomoo SG without transfer fees. View more instructions via the link: https://www.moomoo.com/sg/support/topic5_400

●  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.

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


References:

IRS Requirements on PTP Products:

https://www.irs.gov/individuals/international-taxpayers/publicly-traded-partnerships

IRS Regulations on the Withholding Tax on PTP Transactions:

https://www.irs.gov/individuals/international-taxpayers/partnership-withholding


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
8BDRY
9BEP
10BEP-A
11BIP
12BIP-A
13BIP-B
14BITW
15BKEPP
16BPYPM
17BPYPN
18BPYPO
19BPYPP
20BSM
21CAPL
22CCAP
23CCLP
24CEQP
25CEQP-
26CHKR
27CLMT
28CQP
29DBA
30DBB
31DBC
32DBE
33DBO
34DBP
35DBS
36DBV
37DCP
38DCP-B
39DCP-C
40DGL
41DKL
42DMLP
43ECTM
44EFSH
45EMESQ
46EPD
47ESBA
48ET
49FGPR
50FISK
51FTAI
52FTAIN
53FTAIO
54FTAIP
55FUN
56GBLI
57GCC
58GEL
59GHI
60GLP
61GLP-A
62GLP-B
63GPP
64GRP.U
65GYRO
66HCRSQ
67HEP
68IDIV
69IEP
70KKR
71LAZ
72LMRKN
73LMRKO
74LMRKP
75LRE
76MMLP
77MMP
78MPLX
79NEN
80NGL
81NGL-B
82NGL-C
83NRP
84NS
85NSLPQ
86OAK-A
87OAK-B
88OGCP
89OZ
90PAA
92RGP
93SDRMU
94SDTTU
95SGH
96SIRE
97SMLP
98SNMP
99SPH
100SPLP
101SPLP-A
102SUN
103UAN
104UDN
105USAC
106USDP
107UUP
108WES
109WLKP
110WPG


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 the sale of security (from 1 January 2023 onwards) is not listed in the provided PTP list but falls under PTP classification, Moomoo SG reserves the right to claim the withholding tax from you to satisfy IRS withholding requirements.

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