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HSBC - US Stocks - Withholding tax Collection

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  1. #1

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    HSBC - US Stocks - Withholding tax Collection

    Quote Originally Posted by pin:
    ishares sets out in quite a lot of detail the percentage on each of its US listed ETFs that are exempted from WHT. This is the list from 2017:

    https://www.ishares.com/us/literatur...tages-2017.pdf
    Original Post Deleted
    , do either of you know if the US stock trading platform from HSBC bank is deducting withholding taxes only from the non-qualifying interest from US Etfs or are they taking a full 30% withholding and having investors claim back the qualifying interest from the US government?

    I asked at HSBC and was passed around five different people who told me to ask the other person.

  2. #2

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    From a small test I did last year on a tax exempt ETF. No WHT.

    On pin's recommendation, doing some other tests on how HSBC (or more importantly whoever the withholding agent / whatever intermediary does this) deals with some of these dividends.

    I'd just buy few and test and trial. Small expense for a correct answer.

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  3. #3

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    (Moved the posts for a bit more relevancy)

    Newer iShares list is here:

    https://www.ishares.com/us/literatur...tages-2018.pdf

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  4. #4

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    Also @greenmark if you want to experiment, you might have to act tonight on some monthly distributions for quick answers.

    iShares distribution Schedule - Vanguard and others should be published on their sites...

    https://www.ishares.com/us/literatur...19.pdf?noembed


  5. #5

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    Thanks

    Original Post Deleted
    Just had HSBC call back on this. They say when the amount is returned is dependent on their custodian in the USA.
    The amount the custodian sends back should reflect the amount that is due to the recipient depending on tax treaties. So you're right, HSBC here won't know because it is handled by custodians in the USA.

    Overall going through the bank does seem to be the cheapest and safest way for a small investor to hold US Treasuries
    There is less counterparty risk than with a broker, and better prices than going through HSBC's bond supermarket.

  6. #6

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    Original Post Deleted
    I think you and I have talked about this before, and I respect your approach.
    However, sometimes the tax handling agent does not know what he is doing, laziness / incompetence
    whatever reason, this will lead you to erroneous results.
    I have a bank(ster) and a brokerage, the bank did the calculation correctly, the brokerage did not.
    So in a couple of emails I have calmly explained to them how the tax exemptions for my investments work ( did not help), ignorance is king,
    then involved FINRA, and after a little while they finally got it and started making the correct tax deductions.

    Understand what you do, enforce it.
    Last edited by Morrison; 31-01-2019 at 01:51 PM.