Why are there withholding taxes on the sale of my MLP proceeds?

Interactive Brokers is required to withhold U.S. tax on distributions from certain Master Limited Partnership ("MLP") paid to non-US clients. The portion of the MLP dividend distribution subject to withholding tax is called “Effectively Connected Income ("ECI"); this portion of MLP distributions is not eligible for treaty relief…

Customers can close MLP positions in the same way they would any other security.

Note…

Taxes charged for market data or research subscriptions can be found as a line item in the Cash Report section of your Activity Statement in Client Portal.

Additional Information…

You can review information relating to Irish WHT in the ‘Withholding Tax’ section of your monthly account activity statement.

You can also view this information in your daily statement on the 3^rd business day of the month (when credit interest is paid)…