Provided a certificate of non-resident is supplied, exemption is applied at source. Otherwise the statutory applying to interest on corporate and government bonds issued in Euro is 18%. Interest derived from short and medium-term notes is unconditionally exempt from the 18% WHT
Interest paid on profit participation bonds and convertible bonds is taxed at 26.375%.
Certain "red chip" entities are subject to 10% WHT on dividend payment
For unlisted securities, a standard tax rate of 20% applies
The exempt rates assume securities are held within Furikestu system and the relevant consent letter has been provided as a qualified Intermediary, otherwise the 15% WHT will be applied
Japanese Eurobonds, Domingo and Samurai bonds are tax exempt. Shogun bonds are taxed at 15%
In general, there is no CGT for securities trades. However, capital gains derives by a non resident recipients may be taxed in Japan if:
8.1 Shares held or owned amount to 25% of the entire share capital of such company at anytime of taxable year
8.2 The total of shares sold during the taxable year amount to at least 5% of the entire share capital of such company
Interest or discount other than convertible loan stock, approved by securities commission is specifically exempted from WHT. If the debt is not approved by the securities commission then WHT would be levied at the rate of 15%
Interest paid to non-resident investors from "qualifying debt securities" is exempted from WHT until 31 Dec 2013 Interest income received from non QDS will be subject to withholding at the domestic rate of 15%. QDS includes:
Interest bearing government securities
Debts securities with the tenure of least 10 years
Islamic bonds (or sukuks) subject to the condition that any amount payable by the issuer to the investor of the bonds is not deductible against income being accrued in or derived from Singapore by the issuer providing the proceeds from the issuance are used outside Singapore
Foreign currency denominated bonds issued by foreign companies are exempt from withholding tax
Non-residents investor may benefit from a reduced WHT rate on dividend of 10% on dividend distributed by specific companies (In the food, textile, pulp, chemical and rubber industries) based in specific locations.
For Unlisted securities the WHT will be levied at the rate of 5%
Capital gains - the standard tax rate is 27% where the percentage holding of the stock is 2% or more.
Interest on bonds denominated in foreign currency and issued by the government, local government bodies or domestic corporation are subject to 0% WHT
Capital gain tax is only applicable on equities when the sale is for more than 25% of the share issued. The CGT payable will be the lower of 11% of the gross proceeds or 22% of the capital gain
In practical terms two distributions are made; one franked dividend and one unfranked dividend. Franked dividends are tax exempt whereas unfranked dividend is subject to 30% withholding tax.
Capital Gain - Non-residents of Australia are subject to tax on capital gains only in respect of gains made on the disposal of "taxable Australian property"
Most stock dividends are paid out of the premium reserve, which is exempt from withholding tax. Stock dividendspaid out of the general reserve are subject to the standard 15% withholding rate.
This information relating to withholding taxes set out above is prepared for general information purposes only. It may not be construed as nor is intended to constitute advice in respect of taxation and may not be relied on as such Potential investors should seek independent professional tax advice before making any investment decision.
Asia Plus Securities Public Co., Ltd. makes no representation or warranty and accepts no responsibility or liability as to the accuracy or completeness of the information, and shall under no circumstances be liable for any loss or damage caused by reliance on any information set out in this document.
Potential investors should be aware that tax regulations and their application by relevant taxation authorities change from time to time and accordingly the information in this document is subject to change without notice.