Download Circular to Licensed Corporations Investors likely to face tax

Circular
15 June 2011
Circular to Licensed Corporations
Investors likely to face tax obligations in overseas investments
The Securities and Futures Commission (SFC) recently published an investor education
article on its InvestEd website, reminding investors to watch out for tax obligations, eg, estate
tax and withholding tax, when investing overseas.
The article notes how Hong Kong retail investors could, for example, come under the tax net
of the United States by simply holding US-based investments (including marketable
securities, mutual funds, or bonds, etc) in their own names. Taxation is a factor that should
be taken into account before an investment decision is made but it is quite often overlooked.
The article therefore reminds investors to seek tax advice and learn about the potential tax
obligations, such as estate duty and dividend withholding tax, that might arise from investing
in overseas products.
The SFC is drawing the industry’s attention to the above-mentioned matter and would
appreciate its co-operation to share this message with their clients.
Investors who are informed and fully aware of their risks and obligations are better prepared
to make valid investment decisions. As such, the InvestEd website (www.investEd.hk)
updates its content regularly to promote investor education.
External Relations Department
Securities and Futures Commission
1
Tel: (852) 2840 9222
Fax: (852) 2521 7836
Website: www.sfc.hk