I am using HSBC Hong Kong, but they only let you buy US and HK, unfortunately. 30% dividend tax…
And that is a feisty shafting. So much for an international bank! Are HSBC ETF’s or similar any good or do you also get raped on annual fees?
Any other EU banks operating in HK that you know of? Any thoughts about Standard Chartered in Taiwan?
Think there is any other way to trade EU ETF’s via HK? Maybe Singapore is the next best bet.
Do you not want to invest in USD based funds or do you not want to invest in US companies?
Well I do want to minimize my tax bill.
Not too picky - from what I remember brokerage and taxes are high and annoying though. Also, want a diversified set of ETF’s for different countries/commodities etc.
Since I don’t pay CGT or taxes on my other global assets, not a fan of paying them just for US.
Are US taxes on long term capital gains actually worse than other countries? I think they have risen but they are still quite low I thought. Perhaps they are higher if you are a non-resident/citizen.
This is what I was indirectly asking. US brokers and stock markets have access to ETF’s from every region of the world. If you want it they have it.
30% dividend tax in HK for a non-resident?
Does it only include US stocks or all stocks?
Are US taxes on long term capital gains actually worse than other countries? I think they have risen but they are still quite low I thought. Perhaps they are higher if you are a non-resident/citizen.
This is what I was indirectly asking. US brokers and stock markets have access to ETF’s from every region of the world. If you want it they have it.[/quote][/quote]
Yes you are right about the diversity but then I might need to hedge US dollar risk.
I guess, I’m used to paying 0% CGT so anything higher would start to annoy me. 30% does sound unfair to me and enough to make me shun the US. I remember the brokerage costs were not welcoming either. In the end, it may be better just to invest in a low cost mutual fund or fund which holds a basket of ETF’s if such a thing exists.
Either way, I’m surprised there are not enough tax efficient and cost efficient ways to ETF these days.
Sorry for muddying the waters.
When you get a cash dividend in the US, you pay tax on it. That would be 30% if the dividend is on US securities. That I have to pay. Since I buy non-us securities in the US, I would like not to pay, and would like to hear a bit more about that - alternatively, those securities can be bought in locations where the dividend tax is lower.
[quote=“Mr He”]Sorry for muddying the waters.
When you get a cash dividend in the US, you pay tax on it. That would be 30% if the dividend is on US securities. That I have to pay. Since I buy non-us securities in the US, I would like not to pay, and would like to hear a bit more about that - alternatively, those securities can be bought in locations where the dividend tax is lower.[/quote]
Good question- a decent broker should be able to answer that. I know in my country foreign dividends have different rules.
Well I do not even know who to ask at HSBC… Dammit.
[quote=“Mr He”]Sorry for muddying the waters.
When you get a cash dividend in the US, you pay tax on it. That would be 30% if the dividend is on US securities. That I have to pay. Since I buy non-us securities in the US, I would like not to pay, and would like to hear a bit more about that - alternatively, those securities can be bought in locations where the dividend tax is lower.[/quote]
Dividends are taxed as regular income. If you make a lot then they are taxed at a high rate. If you don’t make much then they aren’t taxed as much.
For cyberguppy - long term capital gains in the US are taxed as follows. Tax rate is 0% for the 10%–15% brackets; 15% for the 25%–35% brackets; and 20% for the 39.6% bracket. You only pay a high tax if you are in a high tax bracket. Teachers for example will all be in the 0% CG tax bracket (probably). This could get muddied if you are a not a US citizen and/or going through a foreign brokerage. Taxes could be really complicated even if you don’t have to pay much though.
online brokerage (Schwab, ETrade, Ameritrade, etc…) costs are dirt cheap. I don’t understand what you mean.
there are tons of low cost ETF’s. The problem is that you need to go through a country’s tax system if you are buying ETF’s in that country. Where are you used to buying and selling stocks with 0% CG’s?
Thanks for the breakdown. Yes US brokers are cheaper - but not for ppl going via HK or TW to buy US stocks - at least the case last time I checked.
I’m not a US citizen so assume they hit non locals with a flat rate for CGT and dividends for US investments.
For tax purposes, I’m not a tax resident of my country - been out for > 5 years and moved house. This means I pay 0% CGT and income tax on any investments accumulated there. No FATCA or similar. In Taiwan, my investments also give me a nice round 0% .
I understand HE’s question is about foreign dividends (lets say non US ETF) but pays dividends and what % taxes they would attract.
[quote=“cyberguppy”]Thanks for the breakdown. Yes US brokers are cheaper - but not for people going via HK or TW to buy US stocks - at least the case last time I checked.
I’m not a US citizen so assume they hit non locals with a flat rate for CGT and dividends for US investments.
For tax purposes, I’m not a tax resident of my country - been out for > 5 years and moved house. This means I pay 0% CGT and income tax on any investments accumulated there. No FATCA or similar. In Taiwan, my investments also give me a nice round 0% .
I understand HE’s question is about foreign dividends (lets say non US ETF) but pays dividends and what % taxes they would attract.[/quote]
Why do you have to go through a HK or Taiwan broker? Why not use a broker in your home country?
Not sure what country you’re talking about here, but dividends are not taxed as regular income. Dividend income is tax advantaged in every country I’m aware of. As to why you can’t protect your foreign dividends, that’s because the tax laws that apply to you are based on your country of citizenship / residence and who you pay income taxes to. If it’s the US for example, it doesn’t matter if you buy foreign dividend ETF’s, you’ll still have to pay US dividend taxes on that. They have tax treaties with every country, and withholding laws that make it impossible for people to avoid paying their proper taxes.
But in the end, dividends are tax advantaged, so even though the US is going to get their share, it’s still worth it to own US and foreign denominated dividend ETF’s. And these days, pretty much every brokerage house will re-invest those dividends for you automatically just as a DRIP would. Just make sure you use a brokerage house that will BOTH re-invest dividends for you at no cost, and invest partial shares. There still are some hold outs in the industry that charge fees for the re-investment and will only do full shares. This is a drain to your fund value that is easily avoidable by selecting the right bank.
bloomberg.com/news/articles/ … -on-stocks
After the huge reversal of fortune of Chinese equities the past month, the government has now approved real estate as collateral for margin trading.
I’m no Warren Buffett, but that sounds like a stupid-ass idea, to say the least. :loco:
Would be nice if you could trade this for a big up and a lurch down. Really doesn’t sound like a good idea.
This is an interesting space to watch along with the Grexit.