Update on the U.S. Stock Tax System

Dear Customer, 

RE: Update on the U.S. Stock Tax System
US Inland Revenue Service ('IRS') has published an updated provision for withholding tax and information reporting on interests transfers in Publicly Traded Partnerships ('PTP') securities by non-U.S. residents pursuant to Section 1446 (f) of the US internal revenue code. The provision will be effective from January 1, 2023, which requires intermediaries, unless an exception applies, to assume the main withholding obligation and withhold 10% withholding tax based on the total transaction amount when non-U.S. investors sell, trade or transfer PTP securities. This regulation also applies to dividend distributions. In other words, when a non-US resident sells, trades or transfers PTP securities, starting on January 1, 2023, 10% tax will be deducted from the 'total transaction amount'. This is a significant revision, please pay attention to the impact on your own rights and interests. Please seek for independent advice from your tax expert.


If you are holding PTP securities, please sell or transfer out the relevant securities before December 28, 2022. Starting from November 1, 2022, our company will no longer accept buy order on PTP securities. 


For relevant regulations, please refer to: 
https://www.irs.gov/individuals/international-taxpayers/partnership-withholding

The above announcement is made in accordance with the current IRS relevant laws and regulations, the content may change due to changes in the content of the IRS regulations or changes in the implementation date. The Company will endeavor to provide timely information for reference, but investors should still in respect of their investment positions pay attention to the development of relevant laws and their impact on their own rights and interests.

For any enquiry, please contact our Customer Services Officer at (852) 3980 2333 (Hong Kong) or 400 1200 902 (China toll free), or e-mail to cs@conrad-is.com.hk.


Sorry for the inconvenience caused.


Sincerely,
Conrad Investment Services Limited