New US Withholding Tax on Publicly Traded Partnerships effective 1/1/2023

Got the following email from TD Ameritrade:
Dear Valued Client,

We would like you to know the U.S. Department of the Treasury and the Internal Revenue Service (IRS) have introduced new regulations under section 1446(f) regarding Publicly Traded Partnerships (PTPs) held by foreign persons. The new regulations could impact specific securities that you may hold in your account.

What this means for you

Beginning January 1, 2023, the new regulations generally will require TD Ameritrade to withhold 10% of gross proceeds from sales of PTP securities and certain distributions by PTPs. The transactions and related withholding tax will also be reported on Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding.

This new withholding tax is separate and in addition to the existing non-resident alien withholding on payments of U.S. partnership income credited to your account.

If you do not hold any PTP securities on January 1, 2023, this notice will not be applicable to you. Please keep in mind, if you invest in PTP securities in the future, the withholding will apply to sales proceeds and distributions.

Additional Information

For more detail regarding the section 1446(f) regulations and how it affects you, please reference the IRS’s Partnership Withholding webpage: Partnership Withholding | Internal Revenue Service.

Would this also apply to PTPs held within ETFs? Hopefully it is only individual stocks. I hold some MPLX, which I assume would be applicable here. Not sure if I will keep it now with having to file a Form 1042-S and also paying more Tax, unless this extra Withholding Tax can be claimed back here with DA -1?

Probably. An Irish ETF is a foreign person, and so are you (I assume).

Yes I am. So I assume US ETFs that contain PTPs held by foreign persons would be affected. Not sure if VT holds any PTPs.