KNOT Offshore Partners LP Announces that Unitholders Remain Unaffected by U.S. Internal Revenue Service Regulations Effective January 1, 2023
ABERDEEN, Scotland–(BUSINESS WIRE)–KNOT Offshore Partners LP (NYSE:KNOP) (“the Partnership”) today announced that the U.S. Treasury and Internal Revenue Service (“IRS”) final regulations concerning publicly traded partnerships that are taxed as partnerships for U.S. federal income tax purposes (“PTP”) that are coming into effect on January 1, 2023, will not affect its unitholders.
These regulations oblige brokers, withholding agents and qualified intermediaries to withhold a 10% tax on a non-U.S. partner’s disposition of an interest in a PTP. As a result, certain non-U.S. brokers may not permit non-U.S. persons to hold such PTP interests in their brokerage account.
KNOP elects to be treated as a C corporation for U.S. federal income tax purposes and therefore interests in the Partnership are not subject to these regulations.
About KNOT Offshore Partners LP
KNOT Offshore Partners LP owns, operates and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of the North Sea and Brazil. KNOT Offshore Partners LP is structured as a publicly traded master limited partnership but is classified as a corporation for U.S. federal income tax purposes, and thus issues a Form 1099 to its unitholders, rather than a Form K-1. KNOT Offshore Partners LP’s common units trade on the New York Stock Exchange under the symbol “KNOP”.
Contacts
KNOT Offshore Partners LP
Gary Chapman
Chief Executive Officer and Chief Financial Officer
Email: ir@knotoffshorepartners.com
Tel: +44 1224 618 420
