Important Announcement: New withholding tax on US Publicly Traded Partnerships (PTP) Securities

The US Internal Revenue Service (“IRS”) has issued a new provision under Section 1446(f) of the Internal Revenue Code (“IRC”) that primarily impacts non-US Persons who invest in US PTP Securities.

With effect from 1 January 2023, a 10% withholding tax will apply to:

1. Gross proceeds from the sale of a PTP
2. Certain PTP distributions

For more information, you may also refer to the details from the US IRS here.

The above withholding tax is over and above the existing withholding tax of 37% on PTP distributions.

Phillip Nova will continue to accept buy and sell orders for PTP securities until further notice. Further updates may be expected as we get more clarity from our U.S. partners.

If you are holding any PTP securities, we suggest that you review your investment portfolio and take appropriate actions to avoid the possible impact of holding such securities from 1 January 2023.

Please click here to access the possible list of PTP securities obtained from external sources. Kindly note that it 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. Phillip Nova assumes no responsibility for the timeliness, accuracy and completeness of this list. If the sale of security (from 1 January 2023 onwards) is not listed in the provided PTP list but falls under PTP classification, Phillip Nova reserves the right to claim the withholding tax from you to satisfy IRS withholding requirements.