What is the withholding tax rate on payments of U.S. source income for non-U.S. Person?
In general, a non-U.S. Person is subject to a withholding tax rate of 30% on payments of U.S. source income. The withholding tax rate may be reduced if there is a tax treaty between your country of tax residence and the U.S..
Withholding tax rates of the 16 eligible jurisdictions as prescribed by the Securities and Futures Commission of Hong Kong (including the United States of America) are listed as below for your reference.
| Country | Withholding tax rate |
|---|---|
| Australia | 15% |
| Austria | 15% |
| Belgium | 15% |
| Canada | 15% |
| Ireland | 15% |
| Israel | 25% |
| Italy | 15% |
| Malaysia | 30% |
| Norway | 15% |
| Portugal | 15% |
| Singapore | 30% |
| Spain | 15% |
| Sweden | 15% |
| Switzerland | 15% |
| United Kingdom | 15% |
| United States of America | 0% (not subject to backup withholding if your TIN and name can be verified) |
If my country of tax residence is not listed above, how can I check my applicable withholding tax rate?
If your country of tax residence is not listed above, you may refer to the Inland Revenue Service (IRS)’s website for further details: https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z
If neither the list above nor the Inland Revenue Service (IRS)’s website mentioned my country of tax residence, how can I check my applicable withholding tax rate?
If so, you are probably subject to a withholding tax rate of 30% on payments of U.S. source income as there is likely no tax treaty between your country of tax residence and the U.S..
Kindly note that the withholding tax rates may change from time to time, please refer to the Inland Revenue Service (IRS)’s website for further details: https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z
The information provided above are for information purposes only, are not intended to constitute tax advice which may be relied upon.