What are the tax implications of investing in Hong Kong?
Income from Hong Kong investments received by a Canadian resident investor is generally treated as foreign income. As a result, dividend income from Hong Kong companies is subject to tax in Canada at your marginal tax rate. However, only 50% of any capital gains from the investments will be subject to tax. Hong Kong generally does not impose a withholding tax on dividend or interest income paid to a non-resident of Hong Kong.
