A Publicly Traded Partnership is any partnership that is traded consistently on an established securities market. This definition does not include a publicly traded partnership treated as a corporation. A Publicly Traded Partnership that has effectively connected income, gain, or loss must pay withholding tax on any distributions of that income made to its non-US partners and report on Form 1042 and 1042-S. The rate of withholding is currently 35 percent, but is subject to future tax law changes.
See Also: Publicly Traded Partnerships