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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 US 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 US. You can still transfer PTP securities out of moomoo US without transfer fees. View more instructions via the link: https://www.moomoo.com/us/support/topic4_82

● From December 8, 2022, margin trading (for both long and short positions) of PTP securities will not be supported. 

● 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

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. 

NumberSymbol
1AB
2AC
3ACP
4APO
5ARES-A
6ARLP
7BAR
8BBU
9BDRY
10BEP
11BEP-A
12BIP
13BIP-A
14BIP-B
15BITW
16BKEPP
17BPYPM
18BPYPN
19BPYPO
20BPYPP
21BSM
22CAPL
23CCAP
24CCLP
25CEQP
26CEQP-
27CHKR
28CLMT
29CNXM
30CQP
31DBA
32DBB
33DBC
34DBE
35DBO
36DBP
37DBS
38DBV
39DCP
40DCP-B
41DCP-C
42DGL
43DKL
44DMLP
45ECTM
46EFSH
47EMESQ
48EPD
49EQM
50ESBA
51ET
52ETP-C
53ETP-D
54ETP-E
55FGPR
56FISK
57FTAI
58FTAIN
59FTAIO
60FTAIP
61FUN
62GBLI
63GCC
64GEL
65GHI
66GLP
67GLP-A
68GLP-B
69GPP
70GRP.U
71GYRO
72HCRSQ
73HEP
74IDIV
75IEP
76KKR
77LAZ
78LMRKN
79LMRKO
80LMRKP
81LRE
82MMLP
83MMP
84MPLX
85NEN
86NGL
87NGL-B
88NGL-C
89NRP
90NS
91NSLPQ
92OAK
93OAK-A
94OAK-B
95OGCP
96OZ
97PAA
98PBFX
99RGP
100SDRMU
101SDTTU
102SGH
103SIRE
104SMLP
105SNMP
106SPH
107SPKX
108SPKY
109SPLP
110SPLP-A
111SUN
112UAN
113UDN
114USAC
115USDP
116USOD
117USOU
118UUP
119WEIX
120WES
121WLKP
122WPG


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

Disclaimer:

This 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 US 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.