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HSBC: US WHT Refunds

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  1. #1

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    HSBC: US WHT Refunds

    Update on a older thread: https://geoexpat.com/forum/155/thread352034.html

    Had done some testing last year with HSBC and have now seen my QII refund.

    The investment in question was an iShares Fixed Income ETF - LQD

    Here's what the end result looks like:

    Code:
    Div Date: 	07/Dec/2018
    
    Distribution: 	0.352
    Post 30% WHT:	0.245 (Recv mid Dec 2018)
    
    QII Spec:	0.256 - Tax Free
    
    Refund Date:	Sept/2019
    HSBC Refund:	0.077
    
    Total Div:	0.322
    2019 iShares QII: https://www.ishares.com/us/literatur...19.pdf?noembed
    2018 iShares QII: https://www.ishares.com/us/literatur...18.pdf?noembed

    What I see is that HSBC is indeed processing these refunds and crediting my account. This is GOOD to know and partially resolves my issue about WHT refunds from ETFs. jrkob had mentioned receiving these refunds on funds he holds.

    May be worth noting:

    - I have not tested this scenario with other banks/brokers, so this may not be valid for your broker.

    - I have not established a schedule for when these refunds show up and if they show up for all ETFs for which there is a QII component as listed in the pdfs above or for all the refunds you that might be issued.

    - I have not tested this with ETF of ETFs like AOA which have fixed income components which might be eligible for refunds. I suspect refunds will not be available through this sort of holding.

    Will update this post as time progresses.
    Last edited by shri; 01-02-2020 at 11:53 AM.
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  2. #2

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    @freeier - this is an example of full and partial tax exempt.


  3. #3

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    If that's the tax law then other banks/brokers should handle it the same way, however , some might lack experience .


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    Quote Originally Posted by Morrison:
    If that's the tax law then other banks/brokers should handle it the same way, however , some might lack experience .
    Citi in HK, from what one of the regulars on geoexpat has told me, takes a 30% deduction on MUB. HSBC does not - full dividend is credited as being 100% tax exempt.

    Far too much leakage out there...

  5. #5

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    Quote Originally Posted by shri:
    @freeier - this is an example of full and partial tax exempt.
    As to the partial tax exempt example,it's still 8.5% in tax paid, however, it's better than the rate usually stipulated in tax treaties for fully taxable dividends. I just wish HK had one in place with US
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  6. #6

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    Quote Originally Posted by Morrison:
    As to the partial tax exempt example,it's still 8.5% in tax paid, however, it's better than the rate usually stipulated in tax treaties for fully taxable dividends. I just wish HK had one in place with US
    8.5% tax on a corp bond ETF is not all that bad.

    + lower transaction cost @ HSBC + higher liquidity in my personal opinion.

  7. #7

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    Adding this... 2019 list of QII / Gains refunds.

    Includes AO* ETFs of ETFs.

    https://www.ishares.com/us/literatur...17.pdf?noembed

    Last edited by shri; 14-10-2020 at 03:23 PM.
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  8. #8

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    @shri - just to clarify, did you have to submit any special forms to HSBC to receive this refund? Or is normal process for any accounts held by HK residents?


  9. #9

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    Quote Originally Posted by xhkge:
    @shri - just to clarify, did you have to submit any special forms to HSBC to receive this refund? Or is normal process for any accounts held by HK residents?
    No docs need to be submitted as long as you have a valid W8whatever on file with HSBC
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  10. #10

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    Original Post Deleted
    No equivalent Ireland fund as far as I can tell.

    Rest... Something like that. Figure it out...my mental maths is weak right now.

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