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Dividend Withholding Tax Status on Hong Kong Listed China Shares
By Investment Moats  •  September 26, 2012
We mentioned in past articles that international stocks are susceptible to a percentage of withholding tax, which will reduce your dividends. For a breakdown on different countries and their withholding tax reference, take a look at this article. I was recently interested in some China shares listed on the Hong Kong Stock Exchange.  Since they do distribute dividends, I am not sure if a 10% withholding tax will be levied. However, I found this article here dated 18 July 2012 that seems to indicate the withholding tax since 2009 is only 5%:
China’s State Administration of Taxes (SAT) has announced a relaxation of the rules governing the withholding tax that foreign investors have to pay on dividends repatriated from their share of investments in Chinese companies. Companies and shareholders based in countries outside Mainland China (such as the United Kingdom, Hong Kong and Singapore) that have double taxation agreements ...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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