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Investing in Canadian companies - tax implications

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  1. #1

    Join Date
    May 2019
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    783

    Investing in Canadian companies - tax implications

    I have a question about investing in Canadian stocks, I've emailed my broker but this forum tends to be more reliable! Manulife also have an investors relations email in HK who I have contacted too.

    Basically, what taxes do I need to pay on dividends and capital gains if I invest in Canadian companies here in HK.

    I'm thinking of Manulife listed on HKEX specifically and Canadian companies listed on the NYSE generally.

    I read through the Canada HK tax treaty doc, and gathered that dividends are subject to 15% withholding tax (but thought Manulife might be an exception), but I couldn't grasp the rules on capital gains at all.


  2. #2

    Join Date
    Mar 2010
    Posts
    6,745

    Capital gains are taxed by the country
    you live in ( or in your case the financial jurisdiction you live in ). HK does not tax capital gains from stock trades. You don’t even need to report it.

    To get the 15% treaty rate you probably need to submit a form to your broker


  3. #3

    Join Date
    May 2019
    Posts
    783

    Thanks for responding. I see from another poster here they paid 25% tax on Manulife shares bought in HK. Makes them much less attractive unfortunately.


  4. #4

    Join Date
    Mar 2010
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    6,745

    he prob did not claim the treaty rate

    Kowloon72 likes this.