Notice 4 Jan 2023:

Our US broker, DriveWealth, has let us know they have temporarily made PTPs inactive. DriveWealth explained this is temporary while they make some system changes to adjust for the new IRS tax for these investment types. During this time you will not be able to place orders for PTPs using your Hatch account, but if you wish to buy or sell, we can manually submit orders to DriveWealth to complete for you. Get in touch with any requests or questions.

US Partnership investments 10% withholding tax from 1 Jan 23

The US Internal Revenue Service is introducing a 10% withholding tax on the sale proceeds of US Publicly Traded Partnership (PTP) investments, effective 1 January 2023. This tax will apply to the total amount received from sales of any such investment, regardless of whether you make a gain or loss. This applies to most US Partnership investments available on Hatch.

What does it mean for me?

  • If you sell after 31 December 2022: You’ll pay 10% withholding tax when you sell any impacted investments. Our broker, DriveWealth, will withhold the 10% and pay the IRS on your behalf.

  • If you dispose of your holdings before 31 December 2022: Sales made prior to this date will not be subject to the new tax.

*IMPORTANT: The US markets close at 10 AM on 31 December 2022 New Zealand time. If you wish to sell, we recommend placing any orders well in advance to ensure they are filled before this cutoff.

How can I find out if a PTP Investment is exempt from this tax?

Most US PTP investments available on Hatch are subject to this 10% tax, however, some may have an exemption. The best way to know if a specific PTP investment is exempt or not is to determine whether the investment provider has issued a statement called a “Qualified Notice”, this indicates that the investment meets the IRS’s requirements for exemption.

It is important to note that exemptions can change over time so it is important you keep up to date if you hold any PTP investments.

How might it impact my tax reporting?

If you hold or sell an impacted investment at any time after 31 December 2022, you may be subject to additional tax reporting requirements with the IRS. We recommend you get advice on your tax reporting obligations if you choose to hold an impacted investment after 31 December 2022.

List of US PTP investments - Last updated 20/12/22

PTP Ticker Symbol

PTP's Investor Relations or Tax Page

Notes

ET

https://ir.energytransfer.com/k-1-tax-package-information/

EPD

https://www.enterpriseproducts.com/

UCO

https://www.proshares.com/our-etfs/leveraged-and-inverse/uco

UVXY

https://www.proshares.com/our-etfs/strategic/uvxy

MPLX

https://www.mplx.com/Contact_Us/Investor_Relations/

BOIL

https://www.proshares.com/our-etfs/leveraged-and-inverse/boil

IEP

https://www.ielp.com/financial-information/sec-filings

PAA

https://ir.paalp.com/SEC_Filings

DBC

https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=DBC

WEAT

https://teucrium.com/etfs/weat

MMP

https://www.magellanlp.com/Investors/TaxInfo.aspx

AGQ

https://www.proshares.com/our-etfs/leveraged-and-inverse/agq

VIXY

https://www.proshares.com/our-etfs/strategic/vixy

CORN

https://teucrium.com/etfs/corn

ARLP

https://www.arlp.com/home/default.aspx

AB

https://www.alliancebernstein.com/corporate/en/investor-relations/tax-information.html

EUO

https://www.proshares.com/our-etfs/leveraged-and-inverse/euo

NGL

https://investors.nglenergypartners.com/tax-information

BSM

https://www.blackstoneminerals.com/investor-relations/

SOYB

https://teucrium.com/etfs/soyb

CEQP

https://www.crestwoodlp.com/investors/Tax-Info/default.aspx

USAC

https://investors.usacompression.com/investor-faqs#faq-How-is-a-partnership-different-from-a-corporation?

GEL

https://www.genesisenergy.com/investors/k-1-information/

GLP

https://ir.globalp.com/resources/investor-faqs/default.aspx

NS

https://investor.nustarenergy.com/k-1-tax-information

SUN

https://www.sunocolp.com/investors/tax-information

CQP

https://eic.energy/basic-tax-principles/

UAN

https://investors.cvrpartners.com/k1tax

FTAI

https://www.ftaiaviation.com/p/1

UGL

https://www.proshares.com/our-etfs/leveraged-and-inverse/ugl

SVXY

https://www.proshares.com/our-etfs/strategic/svxy

SPH

https://investor.suburbanpropane.com/investor-resources

DCP

https://dcpmidstream.gcs-web.com/

WES

https://investors.westernmidstream.com/news-investors/financials/sec-filings/default.aspx

SMLP

https://summitmidstreampartnerslp.gcs-web.com/sec-filings

WLKP

https://investors.wlkpartners.com/sec-filings/default.aspx

HEP

https://investor.hollyenergy.com/investors/financial-information/sec-filings/default.aspx

DMLP

https://www.dmlp.net/

SCO

https://www.proshares.com/our-etfs/leveraged-and-inverse/sco

SIRE

https://www.ciner.us.com/investor-overview/

DKL

https://www.deleklogistics.com/sec-filings

CAPL

https://caplp.gcs-web.com/sec-filings

FUN

https://ir.cedarfair.com/overview/default.aspx#sec-filings

SPLP

https://ir.steelpartners.com/sec-filings

CLMT

https://calumet.com/

GBLI

https://investors.gbli.com/financials/tax-information/default.aspx

KOLD

https://www.proshares.com/our-etfs/leveraged-and-inverse/kold

CODI

https://ir.compassdiversified.com/Tax-Information/year-end-tax-information/default.aspx

Currently exempt

NEP

https://www.investor.nexteraenergypartners.com/tax-information

Currently exempt

PBT

http://www.pbt-permian.com/tax_depletion/PBT2021TaxBooklet.pdf

Currently exempt

NMM

https://ir.navios.com/

Currently exempt

TYG

https://cef.tortoiseecofin.com/media/1378/050217_tyg_prospectus.pdf

Currently exempt

KNOP

https://www.knotoffshorepartners.com/investor-relations/investor-information/news/default.aspx

Currently exempt

CPLP

https://ir.capitalpplp.com/

Currently exempt

DLNG

http://www.dynagaspartners.com/?page=press_show&id=265

Currently exempt

AMLP

https://9443423.fs1.hubspotusercontent-na1.net/hubfs/9443423/alps-docs/lit/bro/alerian-mlp-etf-amlp-tax-advantages-bro.pdf

Currently exempt

USO

https://secure.alpsinc.com/MarketingAPI/api/v1/Content/uscfinvestments/uscfinvestments-taxst-20221205.pdf

1446(f) exemption letter

GSG

https://www.ishares.com/us/literature/tax-information/irc-section-1446-qualified-notice.pdf

1446(f) exemption letter

UNG

https://secure.alpsinc.com/MarketingAPI/api/v1/Content/uscfinvestments/uscfinvestments-taxst-20221205.pdf

1446(f) exemption letter

BNO

https://secure.alpsinc.com/MarketingAPI/api/v1/Content/uscfinvestments/uscfinvestments-taxst-20221205.pdf

1446(f) exemption letter

USCI

https://secure.alpsinc.com/MarketingAPI/api/v1/Content/uscfinvestments/uscfinvestments-taxst-20221205.pdf

1446(f) exemption letter

CPER

https://secure.alpsinc.com/MarketingAPI/api/v1/Content/uscfinvestments/uscfinvestments-taxst-20221205.pdf

1446(f) exemption letter

UGA

https://secure.alpsinc.com/MarketingAPI/api/v1/Content/uscfinvestments/uscfinvestments-taxst-20221205.pdf

1446(f) exemption letter

USL

https://secure.alpsinc.com/MarketingAPI/api/v1/Content/uscfinvestments/uscfinvestments-taxst-20221205.pdf

1446(f) exemption letter

BPYPM

https://bpy.brookfield.com/sites/bpy-brookfield-ir/files/brookfield/bpy/Brookfield%20Property%20Preferred%20-%20Final%20QN.pdf

1446(f) exemption letter

DBE

https://www.invesco.com/us-rest/contentdetail?contentId=7ed5d0cf-eea6-4f6f-b258-faf739af34ac

1446(f) exemption letter

DBP

https://www.invesco.com/us-rest/contentdetail?contentId=7ed5d0cf-eea6-4f6f-b258-faf739af34ac

1446(f) exemption letter

DGL

https://www.invesco.com/us-rest/contentdetail?contentId=7ed5d0cf-eea6-4f6f-b258-faf739af34ac

1446(f) exemption letter

DBO

https://www.invesco.com/us-rest/contentdetail?contentId=7ed5d0cf-eea6-4f6f-b258-faf739af34ac

1446(f) exemption letter

UUP

https://www.invesco.com/us-rest/contentdetail?contentId=7ed5d0cf-eea6-4f6f-b258-faf739af34ac

1446(f) exemption letter

DBA

https://www.invesco.com/us-rest/contentdetail?contentId=7ed5d0cf-eea6-4f6f-b258-faf739af34ac

1446(f) exemption letter

DBB

https://www.invesco.com/us-rest/contentdetail?contentId=7ed5d0cf-eea6-4f6f-b258-faf739af34ac

1446(f) exemption letter

*This list is subject to change and may not always be up to date. If you see a PTP with an exemption letter in the above table please review it yourself to make sure that the info provided is up to date.

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