Scammers are impersonating UOB Kay Hian entities in Malaysia on social media and messaging apps for fraudulent purposes. Please take note that UOB Kay Hian does not offer personal loans or investment opportunities with guaranteed high profits. Please be cautious of the such scam tactics. Contact your nearest known UOB Kay Hian office for verification if unsure. If you have already submitted your personal documents or paid them money, please report to the Securities Commission and PDRM without delay. You may find useful contacts and links in our Scam Alert resource page of our UTRADE website.
Notice – New Withholding Tax on Publicly-Traded Partnership Held by Non-US Persons Effective 1 January 2023 (Please Read)
Dear Valued Clients,
The US Internal Revenue Service has issued a new regulation under Section 1446(f) of its Internal Revenue Code which states that publicly-traded partnership securities (PTPs) by non-US persons (individuals or companies) shall be subject to 10% withholding tax effective 1 January 2023.
••• IMPACT ON PTP SHAREHOLDERS •••
Starting from 1 January 2023, UOB Kay Hian shall withhold 10% of gross proceeds from sales of PTPs (i.e. paid share/contra) and certain distributions associated with PTPs (i.e. dividend).
This new PTP withholding tax is separate from the existing withholding tax (37% for individuals, 21% for companies) on payments of U.S. source income that are related to PTPs.
••• DO YOU HAVE PTPs IN YOUR PORTFOLIO? •••
Quickly review your portfolio against this list of PTPs (Subject to change any time without further or prior notice) to check if you have any PTP holding.
If you are a PTP shareholder, you may sell on or before 28 December 2022 deadline to avoid withholding tax.
If you wish to keep your PTPs after 28 December 2022, we recommend that you consult your tax advisor for independent advice regarding the tax implications on your investment in PTPs.
••• TRADING OF PTPs ON UTRADE •••
Trading of PTPs on UTRADE online platform will be disabled with effect from 29 December 2022 on best effort basis due to the non-exhaustive list of PTP securities which may change any time without further or prior notice.
In any event where you manage to trade PTP securities via UTRADE after 28 December 2022, UOBKH will not be responsible for any loss and liabilities arising from this trade. UOBKH reserves the right to claim the withholding tax from you if the traded securities are found to be taxable afterwards.
••• RESTRICTION OF PTPs AFTER 28 DECEMBER 2022 •••
Trades in PTP shall be restricted to offline orders only starting from 29 December 2022. Please contact your Authorized Dealer's Representative for assistance.
Thank you.