Important changes regarding Publicly Traded Partnership Securities (“PTPs”) in the United States of America (the “US”)

The US Internal Revenue Service (“IRS”) issued a notice pursuant to Section 1446(f) of the US Internal Revenue Code regarding the transfer of benefits to non-US investors in PTPs. This provision applies to the sales, transactions, or transfers (with consideration) of PTPs that occur after January 1, 2023 (inclusive). With effect from 1 January 2023, such investors will incur a 10% withholding tax on gross proceeds from disposals and an additional 10% withholding tax on cash distributions. You may refer to the Addendum: Section 1446(f) rules applicable to the IRS website: https://www.irs.gov/individuals/international-taxpayers/partnership-withholding for more details. This is a major amendment to the relevant regulations and as a result, Huatai Financial Holdings (Hong Kong) Limited (“Huatai”) no longer accepts any buy or sell order for PTPs.

Please note that all information contained herein is for your reference only and do not constitute any investment, financial, legal, accounting, tax or other advice or services. Nothing contained herein shall be construed as an offer, or a solicitation of an offer, to buy or sell any product at any price. If you are in doubt, please seek independent professional advice. Huatai does not act as your consultant or representative, and assumes no fiduciary responsibility or liability towards you for any consequences, financial or otherwise, arising from your purchase, investment, execution, engagement or dealing or else of or in relation to the information contained herein.