Withholding Tax on PTP Securities

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) recently enacted changes regarding publicly traded partnership (PTP) securities held by foreign persons (individuals or entities).
  • As of January 1, 2023, the new regulation requires withholding 10% of gross proceeds from sales of PTP securities and certain distributions by PTPs.
  • This new PTP withholding tax is separate from the existing 37% withholding for individuals and 30% withholding for entity accounts on payments of U.S. source dividends, interest, and other income related to PTP securities.
  • For more detail regarding Section 1446(f) regulations, please review the information available online on the IRS website: www.irs.gov/individuals/international-taxpayers/partnership-withholding and https://www.irs.gov/pub/irs-drop/n-21-51.pdf
To simplify, when a PTP security is sold, there will be a 10% tax applied on the proceeds from the sales (irrespective of capital gains/losses).
 
As a result, we have removed the securities from Sarwa Trade to prevent clients from entering into positions without being aware of the tax implications. If you already hold any PTP securities, you will still be able to close your position whenever you decide to do so. 

The following securities are classified as PTP as of January 25, 2023:
 
AB
AC
ACP
AGQ
AIA
ALT
ANDX
APO
APU
ARES.PRA
ARLP
AZLCZ
BAR
BBU
BDRY
BEP
BEP.PRA
BGH
BIP
BIP.PRA
BIP.PRB
BITW
BKEP
BKEPP
BNO
BOIL
BPL
BPMP
BPY
BPYPM
BPYPN
BPYPO
BPYPP
BSM
CANE
CAPL
CCAP
CCLP
CCR
CEQP
CEQP.PR
CHKR
CLMT
CMD
CMDT
CNXM
CORN
CPER
CQP
CROC
CVRR
CWPS
DBA
DBB
DBC
DBE
DBO
DBP
DCP.PRC
DEFI
DKL
DMLP
DNO
ECTM
EEP
EFSH
ENBL
ENGY
ENLK
EPD
EQGP
EQM
ESBA
ET
ET.PRC
ET.PRD
ET.PRE
ETP
EUO
FELPQ
FGPR
FGPRB
FGPRQ
FISK
FTAI
FTAIN
FTAIO
FTAIP
FUN
FUTS
GBLI
GDVTZ
GEL
GFWQZ
GLL
GLP
GLP.PRA
GLP.PRB
GPP
GRP.U
GSG
GWYGU
GYRO
HCRSQ
HEP
IEP
KKR
KOLD
LAACZ
LAZ
LMRK
LMRKN
LMRKO
LMRKP
LNKE
MCEP
MMLP
MMP
MPLX
NBLX
NEN
NGL
NGL.PRB
NGL.PRC
NGLS.PRA
NNUTU
NRP
NS
NS.PRA
NS.PRB
NS.PRC
NSLPQ
NSP
NUSPQ
OAK
OAK.PRA
OAK.PRB
OCIP
OGCP
OMP
OZ
PAA
POPE
PPX
PSXP
RGP
RISE
RSTRF
SCO
SDRMU
SDTTU
SGH
SMLP
SOYB
SPH
SPKX
SPKY
SPLP
SPLP.PRA
SUN
SVIX
SVXY
SXCP
SXEEQ
TAGS
TCP
TLP
UAN
UCO
UDN
UGA
UGL
UHN
ULE
UNG
UNL
USAC
USAG
USCI
USDP
USL
USO
USOD
USOU
UUP
UVIX
UVXY
VIXM
VIXY
VLP
VTDRF
WEAT
WEIX
WES
WLKP
WMLPQ
XXFPL
YCL
YCS
ZSL
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