US Withholding Tax on Stock Dividends



ORIGINAL POST
Posted by Reg 16 yrs ago
I hope this is the right place to post this.


I am a non-US citizen and non- US tax payer living in HK. I own some US stocks that pay dividends. I have just noticed that when dividends are paid I pay something called a withholding tax at 15%.


Is there a way I can claim this back either from my broker or elsewhere?


Would really appreciate the help.


Reg

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COMMENTS
Todge 16 yrs ago
Reg:

Not that I know of - the US taxes you on dividend income - if your country has a special tax treaty with the US, the withholding tax may be adjusted. From memory the IRS website has details.

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Reg 16 yrs ago
Hi Todge,

Appreciate your reply. This is what I've found out:


For a non-US person dividends are taxed at 30% unless your country of domicile (in this case HK) has a tax treaty with the US. HK does not have a tax treaty with the US and even if one has filed with one's broker an IRS form called W8-BEN. You only ever see 70% of the dividend) at source. Sadly, this tax cannot be reclaimed even if only a small amount.


Hope that helps someone down the line,


Ciao

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bazmoore 16 yrs ago
I don't think Hong Kong has a tax treaty with the US, so this would mean that withholding tax will apply at 30%.

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Reg 16 yrs ago
Thanks Baz. Does anybody know the Withholding Tax rate for a HK resident on dividends received from Canadian stocks? Again I understand that there is no tax treaty between HK and Canada.

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