Australian Dividends and Interest for Hong Kong Residents: The 30% and 10% Withholding Rates
If you are an Australian citizen or permanent resident who has moved to Hong Kong, or plans to, Australian interest paid to you is withheld at 10%, and unfranked dividends and royalties at 30%, because Hong Kong is a non-treaty jurisdiction for Australia. The ATO says the withholding may rise to 47% if your Australian payer does not have your current overseas address. This explainer was checked 2026-10-10. It is general information, not personal tax advice.
Which withholding rates apply to a Hong Kong resident?
The Australian Taxation Office (ATO) sets out the withholding rates for interest, unfranked dividends and royalties paid to foreign residents. For residents of non-treaty countries, the rates are:
| Income paid from Australia | Withholding rate for a non-treaty resident such as a Hong Kong resident |
|---|---|
| Interest | 10% |
| Unfranked dividends | 30% |
| Royalties | 30% |
| Fully franked dividends | Not stated on the official page checked |
The ATO notes that most treaty countries reduce unfranked dividends to 15% and royalties to 10%. Those treaty rates do not apply to a Hong Kong resident, for the reason explained below.
Why does Hong Kong count as a non-treaty country?
The Inland Revenue Department (IRD) of Hong Kong publishes its list of comprehensive double taxation agreements. Australia does not appear on that list, which was read on 2026-10-10. The Australian Treasury publishes Australia’s income tax treaties. Hong Kong does not appear on that list either, and China and Singapore each have their own entry. The pages checked do not say why there is no agreement, or whether one is being negotiated.
Without a treaty, there is no treaty tie-breaker rule. Australian residency is decided only under the ATO’s domestic tests. The non-treaty rates therefore apply to a Hong Kong resident’s Australian interest, unfranked dividends and royalties.
How do I stop the higher 47% rate from applying?
The ATO says a foreign resident should tell their Australian financial institution, the payer, that they are a foreign resident. Tax is then withheld when the income is paid. Follow these steps:
- Tell your Australian financial institution that you are a foreign resident.
- Give the payer your current overseas address.
- Check that the payer holds this address before the next payment.
- Ask the payer for a certificate of payment if you need proof of the tax withheld overseas.
If the payer does not have your overseas address, the ATO says it may withhold at 47%.
Is the withholding my final tax?
For a foreign resident, the ATO treats withholding on Australian interest, dividends and royalties as a final tax. The income then does not need to be declared in an Australian tax return. The ATO’s “Your tax residency” page sets this out.
When does my Australian residency end?
The ATO decides residency on the facts, using four statutory tests: the resides test, the domicile test, the 183-day test and the Commonwealth superannuation test. The resides test is the primary one. Factors it lists include physical presence, intention and purpose, family, business or employment ties, where your assets are held, and your social and living arrangements.
Citizenship and visas do not decide Australian tax residency. A person can be an Australian resident for tax purposes without being a citizen or permanent resident. Leaving Australia or holding a Hong Kong visa does not automatically make you a non-resident.
The ATO gives an example of a family that moves overseas for a three-year job, rents out their Australian home and rents a home overseas. The ATO treats the employee as a foreign resident, because she does not meet the resides test and her permanent place of abode is outside Australia.
From the date you cease to be an Australian resident, Australian-sourced interest, dividends and royalties are subject to withholding as a final tax. In the year your status changes, you answer “yes” to “Are you an Australian resident?” on that year’s return, as the ATO explains.
Individual cases need a registered tax agent in Australia or a qualified Hong Kong tax adviser.
Frequently asked questions
Do fully franked dividends have the 30% withholding rate?
The ATO page checked sets a withholding rate for unfranked dividends only. It does not list a withholding rate for fully franked dividends, so the official page does not state one. The same page does not address any refund of franking credits to foreign residents.
Does living in Hong Kong automatically make me a non-resident for Australian tax?
No. The ATO decides residency on the facts and the four statutory tests. Living overseas, holding a Hong Kong visa or spending a set number of days abroad does not, on its own, settle the question.
What happens if my Australian bank does not have my overseas address?
The ATO says the payer may withhold at the higher rate of 47%. You can avoid this by telling the payer that you are a foreign resident and giving them your current overseas address.
How do I prove to Hong Kong authorities that tax was withheld in Australia?
You can request a certificate of payment through the Australian payer. Ask the payer before you need it, because the page checked does not say how long the payer keeps these records.
Who should I ask about my own situation?
Ask a registered tax agent in Australia, or a qualified Hong Kong tax adviser. This article does not give personal tax advice.
Sources
- ATO: Interest, unfranked dividends and royalties
- IRD: Comprehensive Double Taxation Agreements concluded
- Australian Treasury: Income tax treaties
- ATO: Your tax residency
All pages were checked on 2026-10-10.