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Withholding Tax on Publicly Traded Partnerships (“PTP”) Securities

Pursuant to Internal Revenue Code (IRC) Sections 1446(a) and 1446(f) of the US Internal Revenue Service (“IRS”), starting from January 1, 2023, sale  or transfer of Publicly Traded Partnership (“PTP”) securities by a non-US person shall be subject to the following withholding tax:

● Sale or transfer of PTP securities shall be subject to a withholding tax equal to 10% of the transaction amount;

● Dividends/ interest 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.

Based on the current IRS announcements, decrees and List of PTP Securities, the relevant implementation  may be adjusted  due to future changes in response to the IRS announcement.. Webull Securities Limited will not notify any changes in the relevant laws and regulations on PTP products. Please seek advice from tax advisor to determine whether you will be subject to the new U.S. withholding tax and additional reporting requirements.

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

List of PTP Securities

* Please note that the above link is NOT an exhaustive list of all PTP securities which are in scope for section 1446(f). The list may be subject to change from time to time without prior notice. The list is for reference only. Webull Securities Limited cannot guarantee the accuracy and completeness of this list, and will not be liable for any losses arising from the use of information on this list.

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