The United States tax body (i.e. the IRS) has released a new Internal Revenue Code - Section 1446(f). All Publicly Traded Partnerships (PTPs) must pay withholding tax on any income paid out to foreign partners.

This code is now effective and will impact proceeds from sales of some PTPs held by non-U.S. tax residents, such as Chipper stocks investors. This means sales of the affected PTP assets will become subject to a 10% withholding tax. You can read the official IRS statement here.

A publicly traded partnership (PTP) is a business organisation owned by two or more co-owners whose shares are regularly traded on an established securities market. Below is a list of the affected PTP assets currently listed on Chipper Cash:

Please note that this list of PTPs may be updated from time to time and is subject to change without notice.

This tax will be deducted from the sell amount whenever you sell stocks of any of the PTP companies listed above.

Let’s say you sell a position worth $100 in a PTP, even if no profit is generated; there will be a $10 withholding tax. As a result, you’ll receive $90.

As this Withholding Tax is a new regulation, we are working with our compliance partners to implement some measures. At this time, you cannot execute a buy order for PTPs. We will let you know once this is back on.

In the meantime, if you own a PTP and want to liquidate, you can request a sale via our Support channels. Simply reach out to our support team with the name and quantity of the PTP you would like to sell.