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:
The following securities are classified as PTP as of January 25, 2023:
AB
AGQ
AHOTF
ARLP
ATAX
AZLCZ
BBU
BDRY
BEP
BEP.PRA
BIP
BIP.PRA
BIP.PRB
BIPFF
BIPPF
BITW
BITWL
BKEP
BKEPP
BNO
BOIL
BPMP
BPYPM
BPYPN
BPYPO
BPYPP
BSM
BVERS
CANE
CAPL
CCLP
CELP
CELPQ
CEQP
CEQP.PR
CHKR
CINR
CLMT
CORN
CPER
CQP
CROC
CRT
CWPS
DBA
DBB
DBC
DBE
DBO
DBP
DBS
DBV
DCP
DCP.PRB
DCP.PRC
DGL
DKL
DMLP
ECT
ECTM
EFSH
EPD
ESBA
ET
ET.PRC
ET.PRD
ET.PRE
ETP.PRC
ETP.PRD
ETP.PRE
EUFX
EUO
EVA
FELPQ
FGPR
FGPRB
FISK
FTAI
FTAI.PRA
FTAI.PRB
FTAI.PRC
FTAIN
FTAIO
FTAIP
FTIIP
FUN
GBLI
GDVTZ
GEL
GHI
GLL
GLP
GLP.PRA
GLP.PRB
GLPRP
GPP
GSG
GWYGU
GYRO
HEP
IDIV
IEP
KOLD
LAZ
MIC
MMLP
MMP
MPLX
MPLXP
NEN
NGL
NGL.PRB
NGL.PRC
NNUTU
NRP
NS
NS.PRA
NS.PRB
NS.PRC
OAK.PRA
OAK.PRB
OGCP
OMP
OZ
PAA
PBFX
PBT
PSXP
RSTRF
RTWFF
SBR
SCO
SDTTU
SHLX
SIRE
SMLP
SNMP
SOYB
SPH
SPLP
SPLP.PRA
SRLP
SUN
SVXY
TAGS
UAN
UCO
UDN
UGA
UGL
ULE
UNG
UNL
USAC
USCI
USDP
USL
USO
UUP
UVXY
VIXM
VIXY
VTDRF
WEAT
WES
WLKP
YCL
YCS
ZSL
AGQ
AHOTF
ARLP
ATAX
AZLCZ
BBU
BDRY
BEP
BEP.PRA
BIP
BIP.PRA
BIP.PRB
BIPFF
BIPPF
BITW
BITWL
BKEP
BKEPP
BNO
BOIL
BPMP
BPYPM
BPYPN
BPYPO
BPYPP
BSM
BVERS
CANE
CAPL
CCLP
CELP
CELPQ
CEQP
CEQP.PR
CHKR
CINR
CLMT
CORN
CPER
CQP
CROC
CRT
CWPS
DBA
DBB
DBC
DBE
DBO
DBP
DBS
DBV
DCP
DCP.PRB
DCP.PRC
DGL
DKL
DMLP
ECT
ECTM
EFSH
EPD
ESBA
ET
ET.PRC
ET.PRD
ET.PRE
ETP.PRC
ETP.PRD
ETP.PRE
EUFX
EUO
EVA
FELPQ
FGPR
FGPRB
FISK
FTAI
FTAI.PRA
FTAI.PRB
FTAI.PRC
FTAIN
FTAIO
FTAIP
FTIIP
FUN
GBLI
GDVTZ
GEL
GHI
GLL
GLP
GLP.PRA
GLP.PRB
GLPRP
GPP
GSG
GWYGU
GYRO
HEP
IDIV
IEP
KOLD
LAZ
MIC
MMLP
MMP
MPLX
MPLXP
NEN
NGL
NGL.PRB
NGL.PRC
NNUTU
NRP
NS
NS.PRA
NS.PRB
NS.PRC
OAK.PRA
OAK.PRB
OGCP
OMP
OZ
PAA
PBFX
PBT
PSXP
RSTRF
RTWFF
SBR
SCO
SDTTU
SHLX
SIRE
SMLP
SNMP
SOYB
SPH
SPLP
SPLP.PRA
SRLP
SUN
SVXY
TAGS
UAN
UCO
UDN
UGA
UGL
ULE
UNG
UNL
USAC
USCI
USDP
USL
USO
UUP
UVXY
VIXM
VIXY
VTDRF
WEAT
WES
WLKP
YCL
YCS
ZSL
