Local Stock Market

[aw451]

I thought so but maybe not entirely educated on it. As far as I understand there is no capital gains on dividends or withholding tax on dividends, I assume maybe dividends would come under my personal earnings tax, actually I'm a sole-proprietor in HK so my tax situ is a bit different that just a salary tax. Could you enlighten me as to what I'm missing or point me to a website so I can learn more, thanks.

If you are an HK resident you don't pay capital gains tax on anything anywhere in the world (unless your home country has extraterritorial tax laws). We do not have capital gains tax. Therefore the market you invest in does not matter for tax purposes with the exception of Ireland domiciled US ETFs.

[ndt]

I thought so but maybe not entirely educated on it. As far as I understand there is no capital gains on dividends or withholding tax on dividends, I assume maybe dividends would come under my personal earnings tax, actually I'm a sole-proprietor in HK so my tax situ is a bit different that just a salary tax. Could you enlighten me as to what I'm missing or point me to a website so I can learn more, thanks.

Seems you are mixing up few terms there, also mentioned sole propriertor in HK, best to have one hour simple consultation with an accountant to understand things and how to go about investment as well as whatever you need to declare in tax filling..

[becomjapanHK]

"If you are an HK resident you don't pay capital gains tax on anything anywhere in the world....."

Not strictly true. For example, if you have real estate in Japan and you sell for a gain, you will likely have a requirement to pay CGT in Japan (though HK will have no interest in that CG, as you say)

[shree711]

I thought so but maybe not entirely educated on it. As far as I understand there is no capital gains on dividends or withholding tax on dividends, I assume maybe dividends would come under my personal earnings tax, actually I'm a sole-proprietor in HK so my tax situ is a bit different that just a salary tax. Could you enlighten me as to what I'm missing or point me to a website so I can learn more, thanks.

There is no tax on capital gains or withholding taxes on dividends in HK. By the way, if you invest in US stocks, there is no capital gains either but the US withholds a dividend tax of 30%.

Even sole proprietors don't have to pay dividends on HK stocks.

[flyingmmike]

Trading fees are quite high in HK since you have the 0.1% stamp duty on each trade so that’s in&out on the total whether it’s a loss or gain so that’s a form of a tax right there, plus the banks usually charge a percent commission on trades vs a flat fee.

Trading US stocks from many HK brokerages offer $0 trades so that’s another option.

The HK blue chips are solid stock plays paying dividends, for example you can consider HSBC, CLP, Swire, and even Cathay. Swire has been a solid stock during Covid with its dividends and special dividends probably one of my better investments. HSBC as well but purchased that around the low when dividends were suspended. CLP has dropped but does pay a dividend, and Cathay bought around the low as well and waiting that one out with a current solid profit. Another stable stock is Bank of China with a good dividend and Sinopec is also a good one, bought around the low but should have sold around the high as it’s come down quite a bit recently, all in addition to paying a high dividend.

I did buy China stocks and I’d say that is mostly a mistake on my end, so those are dirt cheap right now but I’d probably stay away from them. My good China plays were BYD and CNOOC, other than that it’s pretty bad from my portfolio’s perspective.

[aw451]

"If you are an HK resident you don't pay capital gains tax on anything anywhere in the world....."

Not strictly true. For example, if you have real estate in Japan and you sell for a gain, you will likely have a requirement to pay CGT in Japan (though HK will have no interest in that CG, as you say)

Japan tax isn't levied by the HK government