What is the new U.S. withholding tax on Publicly Traded Partnership (PTP) securities?
Effective 1 January 2023, the U.S. Internal Revenue Service (IRS) introduced a new tax rule under Section 1446(f) of the Internal Revenue Code (IRC).
Under this rule, a 10% withholding tax applies to:
- The gross proceeds from the sale or transfer of PTP securities; and
- Certain PTP distributions, such as dividends.
Who is affected by this new withholding tax rule on Publicly Traded Partnership (PTP) securities?
This new provision affects non-U.S. residents (non-U.S. persons) who hold or trade in the U.S. PTP securities. If you are a U.S. person or resident, this rule does not apply to you.
Where can I find more information on this new withholding tax requirement?
For more information, please visit the IRS website here.
Under this rule, a 10% withholding tax applies to:
- The gross proceeds from the sale or transfer of PTP securities; and
- Certain PTP distributions, such as dividends.
Who is affected by this new withholding tax rule on Publicly Traded Partnership (PTP) securities?
This new provision affects non-U.S. residents (non-U.S. persons) who hold or trade in the U.S. PTP securities. If you are a U.S. person or resident, this rule does not apply to you.
Where can I find more information on this new withholding tax requirement?
For more information, please visit the IRS website here.