Tax - US investors buy HK stock

CFA Level III
#1

  • Capital gains tax in HK: No

  • Capital gains tax in US: Yes

If US investor bought HK stock and realized the profit, does the US investor need to pay the capital gain tax? Thanks.

#2

Yes.

#3

My US friend said no need becasue he opens the account in HK. Can we say it’s tax efficient manner from CFA perspective?

#4

I believe that your friend is wrong. The IRS rarely misses an opportunity to tax US citizens.

#5

My friend is US citizen but lives in HK.

US is the residence tax country? Thus, he doen’t need to pay the tax if he can prove he doesn’t live in US?

Sorry, still confused about many tax issue…