Tax withholdings on partnerships listed on the US stock exchange from 01.01.2023

The American tax authorities, always hungry for new revenues, will introduce a withholding tax on publicly traded partnerships (PTPs) from January 1st. This will apply to all foreigners and will represent 10% of the proceeds of the sale (yes, you read that right, this does not concern not just the winnings). This applies not only to all future purchases, but also to sales of assets purchased before January 1, 2023.

This measure is particularly dissuasive with regard to these PTPs. Above all, it affects many more assets than one might expect a priori. Because, if these instruments mainly concern companies active in the energy sector, the list actually also extends to a large number of US ETFs related to commodities (like DBC) or even currencies (like UUP). IB fortunately provides an up-to-date inventory.

I will update the Determinant portfolio, in order to avoid this poisoned Christmas present from the American tax authorities...