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Global Dividend Stock Portfolio & Taxes

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  1. #1

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    Global Dividend Stock Portfolio & Taxes

    I have bought shares in HK, USA, AU, GB, Switzerland, France and Germany. My point is to buy high-dividend shares, and use the income for my retirement (10-15 years away). The dividend in some countries is rather high:

    Average dividend in the US (of the shares I bought): 4.92
    CHF: 4.9
    GBP: 6.17
    AUD: 5.47
    Euro: 3.60
    HK$: 3.73

    From this of course one has to pay taxes (except in HK, but I have little faith in the HK economy, so I want to diversify). Does anybody know how many taxes one needs to pay for the dividend from the different countries? I think in the US it's 30% of the dividend and the profits from the sale of the shares. But I don't know the other countries.

    Also, is there a way to have the taxes returned (for example through double taxation treaties, or because of low incomes), and how difficult is it?

    Thanks!


  2. #2

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    Thanks, you are right. I am a German citizen, and I buy a bunch of different shares, many of them REITS, but also banks, insurances, etc. I am surprised it depends on the shares you buy. Isn't the law the same for everyone? For example in Switzerland it's 25% or 30% (I don't remember) for all shares. Anybody has a rough average?


  3. #3

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    Original Post Deleted
    That's an interesting and potentially costly approach.
    As you and i know, sometimes the tax calculation is flawed, and probably not to your advantage.

  4. #4

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    OP, it does not matter where you buy or hold the stocks.
    The parameters that matter are listed as in the following.

    1. in which country is the company incorporated
    eg French company listed in US, French withholding tax applies

    2. your place of residence and tax treaty AND the tax rate stipulated in it
    eg You live in China, buy a company incorporated in US
    tax treaty reduces the withholding tax to 10%

    3. Your nationality, as a few nationals need to pay tax on their worldwide income

    There are more factors and ways to reduce your tax liability, but with this knowledge you cover most of it.

    You should also famiLiarize with W8 BEN form and other regulations in the various countries

    Last edited by Morrison; 03-02-2017 at 11:37 AM.

  5. #5

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    Original Post Deleted
    , what I meant with costly is tax overpaid, especially if you continue to invest on eroneous assumptions as a result of your test.
    I have that frequently, they withhold too much and for various reasons

  6. #6

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    Gosh, this is far more complicated than I had hoped. Thank you guys.


  7. #7

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    Thank you. Yes, I am a resident of HK.


  8. #8

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    Original Post Deleted
    I have been through such a scenario.
    I used FINRA and they helped me resolve the case.
    And I would have gone to court over this.
    I also hold another trading account to somewhat shield myself from unfortunate developments, and will soon open another one due to an increase in assets. I am very paranoid and strict when it comes to my money.
    Last edited by Morrison; 03-02-2017 at 12:54 PM.

  9. #9

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    Jeff, it's not only about knowing these things but also about "setting it up" .
    You will have to provide your brokerage / bank documents every now and then , claim a certain status etc.,
    and monitor whether they do the right things.

    Viel Glück dabei


  10. #10

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    The thing is, if a financial institution treats you like this THEY ARE NOT THE RIGHT Business Partner.

    But I understand you , as you wrote me before you have too many other financial deals with your bank, so you can't afford getting rid of them.

    As to the legal costs, I don't buy or sell in HK but in jurisdictions where the (still) somewhat small investor can get his rights enforced at a reasonable cost. Which is is another business decision.

    Anyway, let's stop this discussion here, I feel we are hijacking Jeff's thread.


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