Are dividends taxed as income?
No, dividends distributed by corporations listed in Hong Kong are generally not subject to withholding tax or income tax. Hong Kong operates under a unique territorial tax system where local profits tax is levied on corporate earnings at the company level, but dividend distributions paid out to local or international shareholders are completely tax-free. There is no capital gains tax or dividend tax on equities traded on the Stock Exchange of Hong Kong (SEHK), making the region highly attractive for income-focused and dividend-seeking international investors.