Important Notice: New withholding tax on the US Publicly Traded Partnerships (“PTP”) Securities
Dear clients,
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, non-US Persons will incur a 10% withholding tax on gross proceeds from sales or trading of US PTP securities.
In view of the complexity of Section 1446(f) withholding tax, Tiger Brokers (NZ) Limited (“Tiger Brokers”) will be taking the following actions:
- Starting from 1 December 2022, Tiger Brokers will cease to accept orders to open positions on USPTP securities and relevant derivatives, and share transfer-in requests for US PTP securities;
- Bythe market close of28 December 2022, clients who hold such USPTP securities can choose to sell theirpositions to avoid incurring the additional withholding tax described above. Starting from 29 December 2022, Tiger Brokers will cease to accept orders to close positions on US PTP securities, and clients could choose to transfer the above positions to other brokers;
- For clients holding the derivatives of US PTP securities, please kindly note that 10% withholding tax also applies to any sales of US PTP securitiesarising from optionexercise/assignment on and after 1 January 2023, and clients will not be able to close the long positions of US PTP securities resulting from option exercise/assignment at Tiger Brokerson andafter 29 December 2022, but clients could choose to transfer the above positions to other brokers.
Please click here for more information on the US PTP withholding tax and here for the list of US PTP securities. Kindly note that the US PTP securities list is non-exhaustive and may change at any time.The above arrangements are subject to changes from time to time, and we may inform you through further notice. If you need assistance or have any queries, please do not hesitate to contact our Customer Service team.
$Invesco DB US Dollar Index Bullish Fund(UUP)$
$ProShares Ultra Bloomberg Crude Oil(UCO)$
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
still holding 100 shares, how to solve? any help