If you invest in shares of certain Publicly Traded Partnerships (PTPs), it’s important to know that they are subject to mandatory withholding by the U.S. Internal Revenue Service (IRS) under Section 1446(f) of the Internal Revenue Code (IRC), effective January 1, 2023.
These withholdings are not Hapi fees—they are a legal requirement that applies exclusively to investors who are not U.S. tax residents.
What is Section 1446(f) and how does it affect you?
Section 1446(f) of the IRC requires tax withholding when a foreign investor (W-8 account) sells or receives distributions from certain securities issued by partnerships, such as:
Publicly Traded Partnerships (PTPs)
Master Limited Partnerships (MLPs)
Some ETFs that hold these assets
What withholdings apply?
10% on total sale amount: When you sell a security subject to this rule, 10% of the gross proceeds are withheld, regardless of whether you made a profit or loss.
10% on ECNI distributions: A 10% withholding also applies to distributions classified as “Excess of Cumulative Net Income” (ECNI).
Dividends: Withholding rates on dividends may vary by country. For example:
Peru: 30%
Chile: 15%
Mexico: 10%
For MLPs with effectively connected income in the U.S., the withholding rate can be as high as 37%.
📌 Important: Dividend withholding is applied on the same day the dividend is paid. Sale-related withholding is applied one day after settlement and typically appears two days later.
Withholding Examples
Selling a PTP for $100: $10 is withheld (10% of gross proceeds).
Receiving a $100 dividend: $10 or more is withheld, depending on the type of income and your country of residence.
How do I know if a stock is subject to this withholding?
There is an official list of securities subject to Section 1446(f), which is updated quarterly.
Symbol | ISIN | Name | Tax Exemption(PTP with Qualified Notice) |
MMLP | US5733311055 | MARTIN MIDSTREAM PARTNERS UNT | No |
LBRA | US28252B8533 | 1847 HOLDINGS ORD | No |
GLL | US74347Y6986 | PROSHARES ULTRASHORT GOLD ETF | Yes |
GLP | US37946R1095 | GLOBAL PARTNERS UNT | No |
RSTRF | CA76090H1038 | RESTAURANT BRANDS INTERNATIONAL UNT | No |
NRP | US63900P6088 | NATURAL RESOURCE PARTNERS UNT | No |
BBU | BMG162341090 | BROOKFIELD BSNS PTNR UNT | Yes |
BDRY | US03210A1079 | BREAKWAVE DRY BULK SHIPPING ETF | Yes |
NGL PRC | US62913M3051 | NGL ENRGY PRT CL C CUM PRPT PREF PRF | No |
VTDRF | BMG9551V1081 | VANTAGE DRILLING INTERNATIONAL ORD | No |
NSLPQ | US64881E1091 | NEW SOURCE ENERGY PARTNERS COM UNT | No |
DEFI | US88634V1008 | HASHDEX BITCOIN ETF | Yes |
BSM | US09225M1018 | BLACK STONE MINERALS UNT | No |
NGL PRB | US62913M2061 | NGL ENRGY CUM RED PRP UNT CL B PRF | No |
AB | US01881G1067 | ALLIANCEBERNSTEIN HOLDING UNT | No |
SUN | US86765K1097 | SUNOCO UNT | No |
GEL | US3719271047 | GENESIS ENERGY CL A UNT | No |
CRDE | US14150E1082 | CARDINAL ETHANOL UNT | No |
BOIL | US74347Y7489 | PROSHARES ULTRA BLOM NAT GAS ETF | Yes |
GFGY | US3873661074 | GRANITE FALLS ENERGY UNT | No |
ZSL | US74347Y7224 | PROSHARES ULTRASHORT SILVER ETF | Yes |
NPONF | JP3047550003 | NIPPON PROLOGIS REIT ORD | No |
MDBH | US55285N1090 | MDB CAPITAL HOLDINGS CL A ORD | No |
TAGS | US88166A7063 | TEUCRIUM AGRICULTURAL ETF | Yes |
VPRB | US91831H1068 | VPR BRANDS ORD | No |
UAN | US1266332055 | CVR PARTNERS UNT | No |
SOYB | US88166A6073 | TEUCRIUM SOYBEAN ETF | Yes |
WES | US9586691035 | WESTERN MIDSTREAM PARTNERS COM UNT | No |
UVXY | US74347Y6804 | PROSHARES ULTRA VIX SHORT TERM ETF | Yes |
TXO | US87313P1030 | TXO PARTNERS UNT | No |
MPLX | US55336V1008 | MPLX COM UNT | No |
ESBA | US2921021000 | EMPIRE STATE REALTY SRS ES UNT | No |
TRLC | US89619H1086 | TRILINC GLOBAL IMPACT CL A UNT | No |
GDVTZ | US38349K1051 | GOULD INVESTORS UNT | No |
EPDU | US2937922068 | ENTERPRISE PRODS PARTNERS SER A UNT | No |
OGCP | US2921022099 | EMPIRE STATE REALTY SRS 60 UNT | No |
NGOOB | US66516V3078 | NORTHERN GROWERS CL B UNT | No |
USAC | US90290N1090 | USA COMPRESSION PARTNERS COM UNT | No |
NGOWL | US66516V1098 | NORTHERN GROWERS CL A UNT | No |
BRIPF | BMG162522269 | BROOKFIELD INFRASTRUCTURE CL A PRF | No |
CWPS | US2128491030 | CONWEST PARTNERSHIP PART UNT | No |
BSMLP | US09225M2008 | BLACK STONE MINERALS SRS B PRF | No |
ARLP | US01877R1086 | ALLIANCE RESOURCE PARTNERS UNT | No |
BEP | BMG162581083 | BROKFLD RWBL PRT NON VTG UNT | Yes |
USL | US91288V1035 | UNITED STATES 12 MONTH OIL ETF | Yes |
USO | US91232N2071 | UNITED STATES OIL ETF | Yes |
PAA | US7265031051 | PLAINS ALL AMERICAN PIPELINE UNT | No |
NEN | US6442061049 | NEW ENGLAND REALTY ASSOC DEP RCPT | No |
FISK | US2921023089 | EMPIRE STATE REALTY SRS 250 UNT | No |
ENGY | US1534231089 | CENTRAL ENERGY PARTNERS UNT | No |
NGOOL | US66516V2088 | NORTHERN GROWERS CL C UNT | No |
UCO | US74347Y8883 | PROSHARES ULTRA BLOOM CRUDE ETF | Yes |
DBA | US46140H1068 | INVSC DB AGRICULTURE ETF | Yes |
BNO | US91167Q1004 | UNITED STATES BRENT OIL ETF | Yes |
YCL | US74347W2706 | PROSHARES ULTRA YEN ETF | Yes |
SVXY | US74347W1302 | PROSHARES SHORT VIX SHORT TERM ETF | Yes |
DBC | US46138B1035 | INVSC DB COMMODITY INDEX TRACKNG ETF | Yes |
DBB | US46140H7008 | INVSC DB BASE METALS ETF | Yes |
DBE | US46140H3049 | INVSC DB ENERGY ETF | Yes |
SPLP | US85814R1077 | STEEL PARTNERS HOLDINGS UNT | Yes |
YCS | US74347W5691 | PROSHARES ULTRASHORT YEN ETF | Yes |
GHI | US02364V2060 | GREYSTONE HOUSING IMPACT INVTRS UNT | No |
SPH | US8644821048 | SUBURBAN PROPANE PARTNERS COM UNT | No |
CANE | US88166A4094 | TEUCRIUM SUGAR ETF | Yes |
USDP | US9033181036 | USD PARTNERS UNT | No |
GYRO | US4038291047 | GYRODYNE ORD | No |
ULE | US74347W8745 | PROSHARES ULTRA EURO ETF | Yes |
DBO | US46140H4039 | INVSC DB OIL ETF | Yes |
DBP | US46140H5028 | INVSC DB PRECIOUS METALS ETF | Yes |
CHKR | US1651851099 | CHESAPEAKE GRANITE WASH ORD | No |
UDN | US46141D1046 | INVSC DB US DOLLAR INDEX BEARISH ETF | Yes |
EUO | US74347W8828 | PROSHARES ULTRASHORT EURO ETF | Yes |
USCI | US9117171069 | UNITED STATES COMMODITY INDEX ETF | Yes |
MPLXP | US55336V3087 | MPLX PRF | No |
FUTG | US8829271639 | LEVERAGE SHARES 2X LONG FUTU DL ETF | No |
FGPR | US3152932097 | FERRELLGAS PARTNERS UNT | No |
CQP | US16411Q1013 | CHENIERE ENERGY PARTNERS UNT | No |
DKL | US24664T1034 | DELEK LOGISTICS PARTNERS COM UNT | No |
BRENF | BMG162581323 | BROOKFIE REN PART PRF CL A SRS 7 PRF | Yes |
GGELU | US38106H1059 | GOLDEN GRAIN ENERGY CL A MBRSHP UNT | No |
WEAT | US88166A8707 | TEUCRIUM WHEAT ETF | Yes |
BIP PRA | USG162522670 | BKFLD INFR CL A LT PR SRS 13 PRF UNT | Yes |
BIP PRB | BMG162522756 | BROOKFIELD INFRAST PARTNE SRS 14 UNT | Yes |
ET | US29273V1008 | ENERGY TRANSFER UNT | No |
UUP | US46141D2036 | INVSC DB US DOLLAR INDEX BULLISH ETF | Yes |
SWIOU | US84504R1059 | SOUTHWEST IOWA RENEWABLE EN CL A UNT | No |
NGL | US62913M1071 | NGL ENERGY PARTNERS UNT | No |
IEP | US4511001012 | ICAHN ENTERPRISES UNT | No |
UVIX | US92891H6062 | 2X LONG VIX FUTURES ETF | Yes |
ECTM | US26827L1098 | ECA MARCELLUS UNT | No |
CORN | US88166A1025 | TEUCRIUM CORN ETF | Yes |
ABENU | US00790W1036 | ADVANCED BIOENERGY UNT | No |
GBLI | US37959R1032 | GLOBAL INDEMNITY GROUP CL A ORD | No |
HEOL | US43123U1051 | HIGHWATER ETHANOL UNT | No |
OAK PRB | US6740014096 | BROOKFIELD OAKTR 6 550 SRS B PRF SHS | No |
OAK PRA | US6740013007 | BROOKFIELD OAKTR 6 625 SRS A PRF SHS | No |
VIXM | US74347W3381 | PROSHARES VIX MID-TERM FUTURES ETF | Yes |
XXFPL | US30242M1062 | FFP PARTNERS CL A UNT | No |
CPER | US9117181043 | UNITED STATES COPPER INDEX ETF | Yes |
CAPL | US22758A1051 | CROSSAMERICA PARTNERS UNT | No |
BPYPP | BMG162491499 | BROOKFIE PPTY PRT CL A CUM PRF UNT | Yes |
BPYPO | BMG162491564 | BROOKFIEL PPTY PRT SRS 2 CM CL A UNT | Yes |
BPYPN | BMG162491648 | BROOK PPTY PART CUM SRS 3 CL A PRF | Yes |
UNG | US9123184098 | UNITED STATES NATURAL GAS ETV | Yes |
AHOTF | CA0266951064 | AMERICAN HOTEL PROPERTI REIT UNT | No |
MNR | US55445L1008 | MACH NATURAL RESOURCES UNT | No |
WLKP | US9604171036 | WESTLAKE CHEMICAL PARTNERS UNT | No |
UNL | US91288X1090 | UNITED STATES 12 MT NATURAL GAS ETF | Yes |
UCASU | US90266X1072 | UC ASSET UNT | No |
GSG | US46428R1077 | ISHARES S&P GSCI COMMODITY INDXD ETF | Yes |
BWET | US03210A2069 | BREAKWAVE TANKER SHIPPING ETF | Yes |
VIXY | US74347Y7307 | PROSHARES VIX SHORT TERM FUTURES ETF | Yes |
BEP PRA | BMG162582313 | BROOKFLD RNWBL PRTNR SRS 17 CL A PRF | Yes |
FGPRB | US3152933087 | FERRELLGAS PARTNERS L P UNT | No |
GGENU | US38106H2040 | GOLDEN GRAIN ENERGY CL B UNT | No |
BIP | BMG162521014 | BROOKFIELD INFRASTRUCTUR PARTNER UNT | Yes |
GLP PRB | US37946R3075 | GLOBAL PARTNRS 9 50 SRS B FXD RT PRF | No |
OZ | US0806941029 | BELPOINTE PREP CL A UNT | No |
AGQ | US74347W3530 | PROSHARES ULTRA SILVER ETF | Yes |
DMLP | US25820R1059 | DORCHESTER MINERALS UNT | No |
UGA | US91201T1025 | UNITED STATES GASOLINE ETF | Yes |
PAAPU | US7265032042 | PLAINS ALL AMERICAN PIPELINE UNT | No |
SVIX | US92891H1014 | 1X SHORT VIX FUTURES ETF | Yes |
EPD | US2937921078 | ENTERPRISE PRODUCTS PARTNERS UNT | No |
UGL | US74347W6012 | PROSHARES ULTRA GOLD ETF | Yes |
ET PRI | US29273V7047 | ENERGY TRANSFER SRS I PRF | No |
SCO | US74347Y7976 | PROSHARES ULTRST BLOM CRUDE ETF | Yes |
KOLD | US74347Y8131 | PROSHARES ULTRASHORT BLM NAT ETF | Yes |
Still have questions?
You can read more details on the IRS official site:
You can also reach out to us directly from the Hapi app. Our team is here to help you.