New withholding tax on US Publicly Traded Partnerships (PTP)

Febbraio 7, 2023 EcoAnemia

The above information is for reference only as the content of the IRS official documents shall prevail.

“Veronica Baker“

New withholding tax on US Publicly Traded Partnerships (PTP)

The Internal Revenue Service (IRS) issued a notice pursuant to Section 1446(f) of the U.S. Internal Revenue Code regarding the transfer of benefits to non-U.S. investors in a Publicly Traded Partnership (“PTP”) with the latest regulations on withholding tax and information reporting (consideration relationship).

This provision applies to sales, transactions, or transfers (with consideration) that occur after January 1, 2023.

Since the US withholding agent is currently only required to withhold tax on “income”, the new law requires the US withholding agent to deduct 10% of the tax from the “gross sales income“.

This amendment will have a significant impact on investors.
You may refer to the Addendum : Section 1446(f) rules applicable to PTPs for more details (available on the IRS website).

This is a major amendment of the regulations, I recommend you to consult your tax advisor about the impact.

Due to the fact that the IRS has not provided an official list of PTPs, I will provide and update a list of PTPs from time to time based on the market information from our upstream partners, and will upload it to our Company’s website.

It is not an exhaustive list of all PTPs that are in scope for Section 1446(f) of the U.S. Internal Revenue Code.
The list may be subject to change from time to time without prior notice.

Please be reminded to pay attention to the relevant risk, because I cannot guarantee the completeness and accuracy of the list which is for clients’ reference only and I will not be liable for any loss arising from the use of the information on this list.

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

The above information is for reference only as the content of the IRS official documents shall prevail, not investment advice and does not constitute an offer or solicitation to offer or recommendation of any investment product.