【Important Notice】 Re: Notification in respect of Withholding Tax and Trade Arrangement for Public Traded Partnership

2022-11-18 18:32 GF Securities (Hong Kong) Brokerage Limited

Annex：重要通知_美国公开交易合伙事业（PTP）的预扣税及交易安排变更通知 (简英）(1).pdf

Date: 18 November 2022
Dear Valued Client, 
<Important Notice> Re: Notification in respect of Withholding Tax and Trade Arrangement for Public Traded Partnership 
Thank you for choosing the services of GF Securities (Hong Kong) Brokerage Limited. 
The U.S. Internal Revenue Service (“IRS”) has released an amendment of withholding taxes requirements on the sale or exchange of interests in, or allocation of taxable income arising from the Publicly Traded Partnership (“PTP”) held by non-U.S. investors in accordance with Section 1446(a) and (f) of the U.S. Internal Revenue Code (“IRC”), which will come into effect on 1 January 2023. After being effective, non-U.S.investors will incur the following withholding taxes when they conduct the following activities:
• Receiving income including dividends/interests/yields: withholding tax rate of 37% for noncorporate foreign partners and 21% for corporate foreign partners will be charged on the allocated amount;
• Conducting the sale or exchange of PTP interest: withholding tax rate of 10% will be charged on the total amount realized.
For more details, please visit IRS’s official website and browse the relevant PTP Products Affected Securities List*:
The above notification is made in accordance with the current IRS’ relevant regulations, while the content and implementation date may be changed according to the regulation update from IRS. Under the current regulations, and with reference to the notice issued by our custodians, any buy or transfer-in order of PTP products are prohibited with effect from the date of this letter, and any sell or transfer-out order of PTP products will be prohibited with effect from 9 December 2022, including any excepted trades listed in the regulations. 
Please note that the aforementioned amendment of regulations are important to you and will directly affect your account portfolios if you are holding PTP products. We suggest you to review your account portfolios immediately and consider to sell or transfer-out the PTP products based on the prevailing market situations before the aforementioned date in order to minimize any potential impacts on you. 
We will endeavour to provide the timely information for your reference, but you should still pay attention to the development of relevant regulations and the potential impacts on you. If you have any doubts, we suggest you to seek an independent professional advice from your tax advisor. 
Should you have any question, please feel free to contact our customer service hotline at (852) 3719-1288/4008695575. 
 
Yours faithfully,
GF Securities (Hong Kong) Brokerage Limited
 
 
 
 
 
 
*The list of PTP products is obtained from external sources for your information. It is not an exhaustive list of all PTP and may be changed from time to time without prior notice in accordance with the relevant U.S. regulations. GF Securities (Hong Kong) Brokerage Limited has no liability for the timeliness, accuracy and completeness of this list. From 1 January 2023 onwards, if any product sold is not listed in the this PTP list but falls under PTP classification, wereserve the rights to claim the withholding tax from you in order to satisfy the IRS withholding requirements.