This was a cold shower. While expecting 0.21HKD, I have received only 0.17.
Is this normal?
Hmmm… Which platform are you using? For my HK listed stocks, I am not taxed nor charged anything on gross amount as far as I know. (I am using StandardChartered to trade in HK)
Using Ifast, dividend i get = HKD 0.1897441919.
If other brokers (like DBS), maybe they will pass u charges made by HKEX of
(1) dividend fee of 0.12% on your total dividend &
(2) scrip fee of HKD 1.50 per board lot ==> this one i still abit blur cos there is once DBS charges me
< HKD 1.50
Gross dividend is 0.184 CNY = 0.21 HKD
After 10% tax it drops to HKD 0.1897441919 - What kind of tax is that?
I see another 10% Witholding Tax in my statement. It drops to 0.17 HKD
I also see 19.92 HKD scrip fee for 17,000 shares, and 1 HKD CCASS
I have asked RM to clarify the source of 20% tax. Let’s see what news he will bring.
Hong Kong doesn’t levy any withholding taxes on dividends for non-residents. I’d be pretty curious to see your RM’s explanation.
I will update you when my RM gets back to me. He is on leave today.
I have found a relevant SCMP article below:
https://www.scmp.com/article/972570/hk-holders-h-shares-pay-10pc-dividend-tax
“Overseas investors may need to pay the full 20 per cent tax rate or the rate according to any tax treaty signed between their home countries and the mainland”
And joke of the year “a small %20 tax”… I wonder if Louis Tse stays in the same company after getting a 20% pay cut 
Louis Tse, director of VC Brokerage, believed the new tax would not have a big impact on the price of the H-shares. ‘Investors who purchase mainland stocks are believers in the China growth story instead of dividend payments. As long as the share price rises, they can earn money and do not mind paying a small amount of dividend tax.’’
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Bank of China trading in HKEX is H share. All H shares has 10% withholding tax. Another 10% could be charged by the broker for handling dividends. This is based on the broker. I have Hui Xian Reit. Which is A share. So there is no 10% withholding tax. Since I use margin account with Ocbc they waive the 10% dividend handling fees. So I will get full amount of the dividend. Buy A shares to get 10% more dividends.
Hmm… But it is additional 10% tax. It is not brokerage fee.
“Non-Hong Kong tax residents who hold H-shares will have to follow their respective countries’ double taxation agreements with China, the Hong Kong Financial Services and the Treasury Bureau said in a statement.”
All Singapore resident individual investors should be subject to the same tax laws. Tax is paid to the government, it doesn’t go into the pocket of broker.
So the question is: DBS Singapore cuts 10% additional tax (on top of the 10% tax by Chinese government). Where does this additional 10% tax go?
According to DBS, there is only 10% witholding tax on H-Shares.
That additional 10% will go to DBS as dividend handling fees.
I checked DBS Vickers online their Div handling fee is 1% of the dividend.
This fee is tally with Phillip securities. They also charge 1% of the dividend as fees.
Take note this is for overseas market only. For SG market no div handling fees.
I am using Ocbc securities. Since I do more than 2 trades per month they dont charger div handling fees.
Or else they will change 1% too.
So nearly all the Brokers are same. If Dbs deduct 10% from you please check with them.
didn’t know abt the tax on H shares. just looking into my history, my beijing airport has a 9.3% tax. I nv check on the dividend received.
@evankoh can we set a tax on individual counter?
@layers I believe you already can => https://stocks.cafe/stock/summary/D05/dbs+group+holdings+ltd?exchange=XSES
On the right, there is a Dividend Tax Rate (if you are using Desktop)
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Forgot to share this update… DBS has refunded the 10% Withholding tax one day later. Apparently the withholding tax is deducted by default, if the dividend is subject to 10% tax (by China government).
If the paid dividend already has the 10% deducted at the source, DBS refunds the withholding tax next day. Hopefully they will improve their process in the future.