PTPs, also known as publicly traded partnership securities, are limited partner shares of companies publicly available on a securities exchange for individuals to trade.
As a result of a U.S. tax regulation (U.S. Internal Revenue Section 1446(f)) which came into law on 01/01/2023, non-US investors will now be required to pay the withholding tax of 10% on the gross sale amount of Publicly Traded Partnership securities (PTP). Additionally, non-US investors will be subject to a 37% withholding tax on dividends for PTP securities.
You can find a list of affected PTPs here.
What does this mean for you?
When you sell a PTP stock, 10% of the gross sale will be taken as tax by the U.S. government.
There will also be a 37% withholding tax on dividends you receive for PTP securities. Holders of PTP stocks that issue dividends are still eligible to receive dividends.
To comply with this regulation, our brokerage partner, DriveWealth, has temporarily made these stocks inactive while they make changes to automate the tax deduction processes. This means that you won’t be able to sell or buy PTP securities on the Bamboo app at this time. Kindly find the affected PTPs here. You’ll be able to sell or buy these stocks on the Bamboo app again once the changes have been implemented in-app. However, if you wish to sell or buy a PTP stock during this period before the in-app implementation, we will need you to provide trade order instructions via email to [email protected]
Please note that:
a. The 10% tax will be deducted once your requested sale has been completed.
b. If you are requesting a buy order, it must be a market order for a specified quantity of shares as we cannot accept buy orders based on a cash value (for example, we can process a buy order for 5 shares but we cannot process an order for $200 worth of shares)