Dear Valued Customers:
Important Notification Regarding to Major Changes in the U.S. Withholding Mechanism for Publicly Traded Partnerships
The Internal Revenue Service (“IRS”) of the United States has issued the latest regulations (the “Regulation”) on the withholding tax and reporting requirements on the transfer of interests (with consideration) by non-U.S. investors in the PTP products in accordance with Section 1446 of the United States Internal Revenue Code. The Regulation will take effect on 1 January, 2023 (“the Effective Date”) requires intermediaries to withhold 10% of the total transacted values for performing any sales transactions or other transfers of the PTP products on behalf of any their non-U.S. investors for tax purpose. Any dividends paid out originated from these aforesaid products may also be subject to the said withholding tax. For details of the Regulation, please refer to this link www.irs.gov/individuals/international-taxpayers/partnership-withholding.
Based on the above information, please review and evaluate carefully the tax impact on your own interests of the U.S. holdings in your account or consider your asset reallocation before the Effective Date. You also may consult your tax advisor if necessary.
Subject to no further change in the Regulation, we shall provide customers with PTP products according to the following schedule.
- From Monday, 21 November, 2022, any PTP products purchase orders will be refused, only PTP products sale orders or instruction to transfer out to other brokers will be accepted.
- Friday, 23 December, 2022 at 17:00 (HKT) will be the last moment to transfer out all the PTP products.
- Tuesday, 27 December, 2022, will be the last trading day for all PTP products.
Please be noted that if you do not follow the above timeline, you shall be responsible for the consequences and we will not bear any responsibilities. We have enclosed the PTP Products List for your reference. The list is based on market peer information and notices from financial institutions in the United States, we cannot guarantee the completeness of the list. Moreover, the list may update as more information becomes available in future. Investors are advised to pay attention to the relevant announcements on the IRS official website.
Should you have any queries, please contact your Account Executive or our Customer Service Hotline at (852) 2328 0388 (Hong Kong) / 40085-95579 (China Toll Free) or via email brokeragecs@cjsc.com.hk.
Changjiang Securities Brokerage (HK) Limited