2017年4月18日 星期二


上文《揭開美帝股息免收陀地之謎》講到,nonresident alien(NRA)的美股投資只應申報 non-effectively connected income(NEC),魔術師亦決定跟足程序,彰顯程序公義,問美帝拎返收多咗嘅陀地費;而唔會去學那班呆灣投資者咁,扮唔識英文或真唔識英文咁去報 effectively connected income(ECI)來騙個人免稅額(personal exemption)搏大霧退回稅款。由於美國公司的派息必收 30% withholding tax,呢一方面無爭議,無法退稅,要諗的就是外國股票(相對美帝而言,下同)及有機會免稅的 ETF(Exchange Traded Fund)。
魔術師睇返 Interactive Brokers (IBKR.NASD,簡稱)提供2016年度的 1042-S,再對照返份 dividend report(見《解剖魔術師 2016 年度 1024-S》),發現魔術師本年度曾收過以下「外國」股票及 ETF所派股息:
1. Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI.NASD) : 國家為巴哈馬群島(Bahamas, BS),IB將之當成係 non-US income(呢一點跟魔術師在舊文《美帝股息免收陀地之謎》的理解並不一樣),並無 withholding tax,亦沒有在 1042-S 中反映。
2. WisdomTree Europe Hedged Equity Fund (HEDJ.AMEX):此 ETF 投資在歐股,但 IB 卻只依照 ETF 發行公司的所在地,當成是 US source income,而不是 foreign income,呢個係可以申請退稅的漏網之魚。
3. iShares Mortgage Real Estate Capped ETF (REM.AMEX):本 ETF 投資在美帝笨土 REIT,屬正規 US income,無法退稅。
(圖片來源:iShares > Client Resources > Financial, Tax and Legal Documents > 2016 Distribution Summary Information
4. Sony Corp (SNE.NYSE) :國家為日本(JP),withholding tax 屬 non-U.S. Tax paid,故沒有在 1042-S 中反映。

5. Vanguard REIT ETF (VNQ.AMEX):對 NRA 的 NEC 來說,免稅項為 capital gains distributions 和 Unrecaptured 1250 Gain (income code 36), 與及 return of capital (income code 37),只有 Ordinary Dividend 會在 1042-S 中反映,IB亦會將多收了的 withholding tax發還給魔術師(見《IB 自動自覺幫你退稅?》)。
Publication 515 (2017), Withholding of Tax on Nonresident Aliens and Foreign Entities
Withholding on Specific Income > Income Not Effectively Connected
However, a distributing corporation or intermediary may elect to not withhold on the part of the distribution that:

4. Represents a capital gain dividend (use Income Code 36) or an exempt interest dividend by a regulated investment company,
Instructions for Form 1042-S (2017), Foreign Person's U.S. Source Income Subject to Withholding
Specific Instructions for Withholding Agents > Box 1, Income Code

4. Use code 24 (qualified investment entity (QIE) distributions of capital gains) for distributions of capital gains from a QIE. Use code 36 (capital gains distributions) for capital gain distributions (dividends) paid or credited by mutual funds (or other regulated investment companies). Include short-term capital gain dividends (use exemption code 02 (exempt under IRC (other than portfolio interest)) in box 3a).

7. Use code 37 (return of capital) for a nondividend distribution. This is a distribution that is not paid out of the earnings and profits of a corporation. It represents a distribution in part or full payment in exchange for stock.

13. Use code 52 (dividends paid on certain actively traded or publicly offered securities), 53 (substitute payments-dividends paid from certain actively traded or publicly offered securities), 51 (interest paid on certain actively traded or publicly offered securities), 54 (substitute payments-interest from certain actively traded or publicly offered securities), and 13 (royalties paid on certain publicly offered securities) if the income paid is described in Regulations section 1.1441-6(c)(2) and you have reduced the rate of withholding under an income tax treaty without the recipient providing a U.S. or foreign TIN.
6. VanEck Vectors CEF Municipal Income ETF (XMPT.AMEX) : 免稅項為 Alternative Minimum Tax 和 Federal Tax Exempt,只有 Ordinary Dividend 會在 1042-S 中反映(見《IB 自動自覺幫你退稅?》)

IB 對於總稅項作出以下「國家級」分類:

由於漏掉了 HEDJ,魔術師於是寫信去 IB 問,結果 IB 答話唔關佢地事:

魔術師鍥而不捨,再寫去問 WisdomTree:
Hi WisdomTree,
I am an investor from HK and has submitted W-8BEN form to my broker, Interactive Broker (IB) to claim myself as a nonresident alien (NRA) with respect to U.S IRS. My only U.S. business activity is trading in stocks and securities and therefore I am not engaged in a trade or business in the United States.
I was a shareholder of WisdomTree Europe Hedged Equity Fund (HEDJ) and from my dividend report as of tax year 2016, I have received a sum of dividend from WisdomTree Europe Hedged Equity Fund (HEDJ) with ex-dividend date 20160620. The gross income is USDXXX, leading to a sum of 30% withholding tax of USDXXX.
According to the official website of HEDJ, this ETF invests in European countries:
In this regard, as per Pub 519 quoted below, should the captioned dividend from HEDJ be considered as non-US income and could be exempted from 30% withholding tax? If my understanding is correct, could you please provide an official written proof for me to claim a refund on the tax withheld?
Publication 519, U.S. Tax Guide for Aliens
3. Exclusions From Gross Income > Nonresident Aliens > Dividend Income
Certain dividends paid by foreign corporations. There is no 30% tax on U.S. source dividends you receive from a foreign corporation. See Second
exception under Dividends in chapter 2 for how to figure the amount of U.S. source dividends.
Thanks and regards,

個 attachment 亦可以從以下網頁下載:
於是魔術師便取得了證據,證明 HEDJ 所派股息是100%屬於 foreign income,接下來便可以填寫 1040NR 申請退稅了。
Dividend Withholding Tax Table - NYSE
iShares > Client Resources > Financial, Tax and Legal Documents
VanEck Vectors ETF > Performance > Distributions and Tax info > ETFs
傻瓜投資日誌:美股投資退稅 - VWO股息預扣稅款能否退稅訊問IRS的結果
解剖魔術師 2016 年度 1024-S
IB 自動自覺幫你退稅?

13 則留言:

  1. Dear Magician, really grateful to read your series on U.S. withholding tax. It really does highlight the importance of selecting a proper structure/ vehicle for investing in the U.S. public market.

    I'm considering some onshore U.S. bond ETFs for their relatively high yields and USD-denomination. However as a Hong Kong-based NRA I'm concerned about claiming refunds for the 30% WHT from the U.S. IRS.

    I've read several articles online (including this one and your other pieces), but bond ETFs haven't been well discussed so far. Anyway I saw a section on the U.S. IRS website which I think might be relevant (https://www.irs.gov/publications/p519/ch03.html#en_US_2016_publink1000257145).

    Nonresident Aliens
    Nonresident aliens can exclude the following items from their gross income.


    Certain interest-related dividends. There is no 30% tax on interest-related dividends from sources within the United States that you receive from a mutual fund or other regulated investment company in 2016. The mutual fund will designate in writing which dividends are interest-related dividends.

    According to this section, it seems to me that the withholding shouldn't happen for distributions from the said bond ETFs (although some said dividends from the bond ETFs are deemed equivalent to equity dividends). Or if the withholding does occur, the investor of the said ETFs can claim refund from the IRS.

    Is it also your opinion that my interpretation is likely true?

    With my very best regards,

    1. My apology for overlooking the link "iShares > Client Resources > Financial, Tax and Legal Documents" (https://www.ishares.com/us/library/tax). There are summaries identifying the amount and portion of NRA Exempt Qualified Interest Income.

      So it is possible to have part, if not all, of the WHT refunded...


    2. //Anyway I saw a section on the U.S. IRS website which I think might be relevant (https://www.irs.gov/publications/p519/ch03.html#en_US_2016_publink1000257145).

      I think for bond interest, you can also read exemption for "portfolio interest":

      //There are summaries identifying the amount and portion of NRA Exempt Qualified Interest Income.

      Good observation. Attention to details always make you good. My further readings are included with a reason. XD

      //bond ETFs haven't been well discussed so far

      See my article IB 自動自覺幫你退稅?. I have talked about XMPT. Even it is a bond ETF which is certainly paid with 99% tax exempt (because the ETF invests in State and local government obligations), IB still charges 30% withholding tax upfront and then returns the "incorrectly" whthheld money to me in form of "tax adjustment" at year end.

      My gut feeling makes me believe that IB will do the same for other bond ETF (depending on the percentage stated in the Fund House document). Also depending on the income code 1040-S, you may try to claim back the "remaining" sum of money from IRS (due to portfolio interest) too.

      Of course, I do not know which broker you are using and whether you have the proper 1042-S which is the key document for any further action... That's why I cannot chase back part of the withholding tax charged by HSBC last year for VNQ dividend...

  2. 魔兄做得好!
    似乎如果發行公司在美帝本土而投資物卻在國外的話,會容易收多咗Withholding Tax。

    1. //魔兄做得好!


      //似乎如果發行公司在美帝本土而投資物卻在國外的話,會容易收多咗Withholding Tax。


  3. 魔兄 好,

    感謝您辛苦的整理資料, 以及詳盡的說明. 這樣美國註冊的ETF, 但股息來源是foreign income的情況下, 是可以退稅的.


    1. 魔兄:

      我向IB提問EEM及VWO兩隻投資新興市場的ETF會否收30% withholding tax,IB回覆如下:
      You are a resident of Hong Kong. There is no tax treaty signed between Hong Kong and the United States regarding Dividends, therefore the tax withheld for US Dividends will be 30%.



    2. 對, IB 是不會幫客戶處理 ETF 內部的 foreign income, 情況跟我處理HEDJ 一樣.

    3. 感謝魔兄回覆!



    4. //是否要先向EEM及VWO發行商取得證據

      問 Fund house 抑或是自行在網上下載, 隨你喜歡. 不過無證據, 你又如何證明自己entitle 幾多退稅金額呢.

      你仲要有IB 每年出的 tax report, 可以login 再在 tax section download; 而且要計,仲要有1042-S (每年3月15日出);如果你無ITIN, 亦要申請, 請將W-7連同1040NR一併遞交.

      以上詳情, 我全部有寫,請自行爬文查閱.