I'm a HK citizen currently residing in HK. I initially thought of investing in US ETFs, but upon research found that investing in their corresponding Ireland ETFs will bring the dividend tax to 15%.
I read that Ireland domiciled ETFs have "deemed disposal", where tax (41% of the profit) needs to be paid every 8 years, which can then be used as credit against the final tax.
I'm still a bit muddy on this whole tax issue. So hoping people here can confirm/clarify (sorry these are amateur questions!):
Let's assume I have recently purchased an Ireland domiciled ETF
1) Before the 8 years is up and if residing in HK, I only need to pay dividend tax of 15% Correct? Would I be taxed again if I choose to reinvest the dividend?
2) On the 8th year and residing in HK, in addition to dividend tax, I will also need to pay the 41% tax. Correct?
3) How will my tax situation change if I move to UK before or after the 8 years? I read from an older post that the best solution was to sell the ETF before moving to UK. What if I have a permanent HK address? Would that make a difference?
Thanks so much!