How do individuals listed in Hong Kong pay taxes?

According to the provisions on dividend income tax of mainland individual investors investing in stocks listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect, H-share companies should apply to China Securities Depository and Clearing Co., Ltd. (hereinafter referred to as China Settlement) for dividends obtained by mainland individual investors investing in H-shares listed on the Hong Kong Stock Exchange through Shanghai-Hong Kong Stock Connect, and China Settlement will provide H-share companies with a list of mainland individual investors, and H-share companies will withhold and pay personal income tax at a rate of 20%.

Article 2 of the Individual Income Tax Law of People's Republic of China (PRC) shall be subject to individual income tax: (1) Income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Operating income; (6) Income from interest, dividends and bonuses; (7) Income from property lease; (8) Income from property transfer; (9) Accidental income. Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.