
How much tax do Hong Kong investors need to pay when buying U.S. stocks?

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When buying U.S. stocks, capital gains tax and a 30% dividend tax are generally levied. Non-U.S. investors are exempt from capital gains tax. However, if you want to receive dividends from U.S. stocks, a 30% dividend tax will be deducted directly upon distribution. Since Hong Kong does not impose a dividend tax, buying Hong Kong stocks for dividends does not require paying dividend tax. However, investors should note that if they hold H-shares or certain red-chip stocks, a 10% dividend tax will be applied when receiving dividends.
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