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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. 

        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:

        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.