① US dividend withholding tax

The US withholds 30% on dividends paid to nonresident aliens (NRAs)^[1]. The United States is not on the Inland Revenue Department's list of comprehensive double taxation agreements^[6], so Hong Kong investors are generally withheld at 30%; check your broker's Form 1042-S for the actual figures. Hong Kong has no capital gains tax, and profits tax excludes profits from the sale of capital assets^[4]. For how your own dividends are treated in Hong Kong, check with the IRD or an accountant.

② US estate tax estimate (nonresidents)

Method: the taxable estate is run through the US unified rate schedule (18%–40%) to get a tentative tax, less the nonresident unified credit of US$13,000 (roughly the tax on the first US$60,000)^[2][3]. Form 706-NA must be filed if US assets exceed US$60,000^[2]. This is a simplified estimate that ignores deductions apportioned by worldwide assets, the marital deduction, state estate taxes and so on. Hong Kong itself abolished estate duty under the Revenue (Abolition of Estate Duty) Ordinance 2005 for deaths on or after 11 February 2006, but US estate tax can still apply to US-situated assets such as US stocks^[7].

③ Broker fee comparison (annual cost)

The IBKR row uses the official IBKR Pro Fixed pricing: US$0.005 per share, US$1 minimum per order, capped at 1% of trade value^[5]. Brokers A/B/C are blank templates. Fill them in from the latest official fee schedule of the broker you use (for example Futu, Tiger or HSBC).

📚 Articles

• Why You Lose 30% of US Dividends: Withholding Tax and W-8BEN Explained
• US Estate Tax Risk for Non-US Holders of US Stocks: The US$60,000 Threshold and Rate Schedule
• Do You Pay Local Tax on US Stocks? Dividends and Capital Gains Explained

Disclaimer

This is an independently built, unofficial information tool with no connection to any government department. All results are for reference only and are not tax, legal or investment advice. Actual tax is determined by the US Internal Revenue Service (IRS) and the Hong Kong Inland Revenue Department (IRD). Your circumstances, such as whether you carry on a securities trading business or how your estate is structured, may change the result. Please consult a qualified accountant or lawyer.

Sources (checked 16 October 2026): [1] 26 U.S.C. §871 and §1441 (LII); [2] IRS, Instructions for Form 706-NA (Rev. 09/2025): US$60,000 filing threshold, maximum unified credit of US$13,000 (IRS); [3] IRS, Instructions for Form 706, Table A unified rate schedule, 18%–40% (IRS); [4] Inland Revenue Department: profits tax excludes profits from the sale of capital assets; Hong Kong does not tax capital gains (IRD Profits Tax, IRD); [5] Interactive Brokers stock commissions (IBKR); [6] Inland Revenue Department: Comprehensive Double Taxation Agreements concluded (IRD); [7] Inland Revenue Department: Estate Duty (IRD).