Hong Kong’s Financial Services and the Treasury Bureau (FSTB) has
confirmed that dividends paid to Hong Kong investors by companies in mainland
It was disclosed that Hong Kong’s government has received a reply from
China’s State Administration of Taxation (SAT) that clarified the arrangements
concerning the tax payable to the Mainland for dividends paid by Mainland
companies to individual investors in
A spokesman for the Financial Services and the Treasury Bureau said: "SAT’s reply notes that when non-foreign investment companies of the Mainland which are listed in Hong Kong distribute dividends to their shareholders, the individual shareholders in general will be subject to a withholding tax rate of 10% with reference to the arrangement for the avoidance of double taxation signed between Mainland China and Hong Kong. They do not have to make any applications for entitlement to the above-mentioned tax rate.”
It was added that: "For shareholders who are residents of other
countries, and whose home countries have reached an agreement with
The spokesman said that the Stock Exchange of Hong Kong will issue a letter to listed companies to inform them of the above-mentioned tax arrangements concerning dividends paid by Mainland companies.
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