Dear Valued Clients,
Re: United States Publicly Traded Partnerships securities
This notice is related to trading and/or safekeeping of US Publicly Traded Partnerships securities (“PTP”)*.
The Internal Revenue Service (“IRS”) of the United States has announced a revised provision on withholding tax under Section 1446(f) which primarily impacts Non-US Persons (Foreign Persons) who trade in PTP. With effect from 1 January 2023, any non-US person who trade and/or transfer interests in PTP will be subject to 10% withholding tax based on the total consideration amount.
In view of the substantial impact on the internal operations of Luk Fook Securities (HK) Limited (“Luk Fook”),
Starting from 1 November 2022:
– Luk Fook will NO LONGER accept any BUY order of PTP while clients may still place SELL order of PTP
Starting from 28 December 2022:
– Luk Fook will NO LONGER accept any SELL order of PTP
– Clients must transfer out the entire PTP position, if any, on or before 28 December 2022 to avoid any potential impact on their holdings
The above information is not investment advice and does not constitute an offer or solicitation of an offer to deal in or recommendation of any investment product. Luk Fook is not liable to any loss or liabilities arising from the use of the information. If you are in doubt, you should consult your legal, financial or other professional advisers.
Should you have any question, please contact our customer service at 2980 0804 or your account executive. Thank you.
Yours sincerely,
Luk Fook Securities (HK) Limited
* PTP securities refer to US or non-US partnerships that are traded on securities market (e.g NYSE, NASDAQ) or readily tradable on secondary market (e.g OTC), which commonly referred to Master Limited Partnerships. Information related to PTP securities may change from time to time, please refer to https://www.irs.gov/individuals/international-taxpayers/partnership-withholding for details.