There is no tax deduction for dividends of Hong Kong stocks, because the Hong Kong Stock Exchange stipulates that the company is registered in Hong Kong, and shareholders do not need to pay dividend tax, because listed companies have already paid profit tax before dividends. However, if the dividend-paying company is not registered in Hong Kong, the registered country may tax shareholders such as Hong Kong people and foreigners.
Hong Kong stocks have no dividend tax, and cash dividends do not need to be deducted. However, when listed companies pay dividends, securities banks and banks with stock custody will also charge a small amount of handling fees in proportion. If investors intend to hold stocks for a long time after buying them, they can also take out physical stocks to avoid costs.
It should be noted that the dividend tax for investors investing in H shares through Hong Kong stock accounts is 65,438+00%, but the dividend tax for investing in H shares through Hong Kong Stock Connect is 20%. It should be noted that Hong Kong stocks need to charge a fixed account management fee, which is usually HK$ 65,438+000 per year.
2. Do Hong Kong stocks have to pay dividend tax when they pay interest on shares?
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Dividend tax refers to the tax levied on dividends of listed companies. For long-term investors for more than one year, dividends are temporarily exempted from personal income tax; Double dividend tax is levied on investors who buy and sell short-term within one month.
Dividend income tax belongs to the category of "personal income tax". According to the relevant provisions of the Individual Income Tax Law, individual income tax is paid at a reduced rate of 20% on the interest, dividends and bonus income obtained by individuals from companies, enterprises or other economic organizations in China because they hold bonds, stocks and shares in China.
3. When will the stock dividend tax be deducted?
After a listed company makes a profit, it will pay dividends. The dividend distribution time of Shanghai and Shenzhen stock markets is slightly different. Shanghai Stock Exchange will receive the bonus within 3 working days after date of record, and Shenzhen Stock Exchange will receive the bonus within 5 working days after date of record.
At the same time, stock dividends will be taxed. Generally, the tax on stock dividends will be deducted when investors sell stocks, and the deducted tax is equal to the dividend amount × tax rate. According to relevant regulations, 20% personal income tax shall be paid for holding shares less than 1 month (including 1 month), and 1 0% personal income tax shall be paid for holding shares more than 1 month (including 1 year).
The above is the relevant legal knowledge about dividend tax deduction of Hong Kong stocks. To sum up, dividends from Hong Kong stocks are not tax deductible, because HKEx stipulates that shareholders of local companies in Hong Kong are not required to pay dividend tax.