---
title: What is the new U.S. withholding tax on Publicly Traded Partnership (PTP) securities?
description: PTP tax for NRA foreign investors
---

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# 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](https://www.irs.gov/individuals/international-taxpayers/partnership-withholding).

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