I am currently living in Hong Kong, but I use a Dutch broker (Degiro) to buy an American stock (Microsoft) on a German market (Tradegate Exchange, or TDG for short). Which country's dividend tax am I supposed to pay?
Degiro has been withholding 30% tax on my dividend payouts because according to them I pay American dividend tax because the company is situated in the US. But I bought it from a German market with euro's so I would assume that I have to pay 26.375% tax instead?
On Hong Kong regulatory websites (deloitte, page 5) it says “Dividends received from foreign companies are not taxable because they are foreign sourced income”. Then shouldn't Hong Kong dividend tax rules apply, aka 0%? I'm confused.
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