China Mobile (0941)

[money]

Hi experts,

I am a typical singapore employee.

In terms of tax considerations whether capital gains or dividend payout, should i buy China mobile through the HKSE, the NYSE (in the form of ADRs) or the SGX (also in the form of ADRs)?

thanks in advance

Short answer: buy via HKSE. No taxes on dividends or capital gains, and the shares are highly liquid.

Long answer: With the NYSE ADR you run the risk of dividends being subject to a 30% withholding tax as there is no Singapore-US tax treaty. For HKSE shares there is no tax on dividends. For capital gains, NYSE ADRs will not be taxed provided you submit a W8-BEN form to your broker to declare that you are not a US person. HKSE shares do not attract capital gains tax for Singapore tax residents, no need to submit any forms. I do not know anything about the ADRs traded on SGX but liquidity will probably be much lower than on HKSE.

Thank you