HSBC Foreign stocks

The W-8BEN form is a requirement of the US IRS tax reporting for non-US persons

1. The form is:
   1. to establish that you aren't a US person; and
   2. to claim that you're the beneficiary of the US-sourced income for which the W-8BEN form is provided; and
   3. exempts all US taxes on capital gains from trading securities for non-American individuals, yet dividends and interest incomes are subject to 30% withholding tax
   4. to claim, if applicable, a reduced rate of, or exemption from, withholding tax by being a resident of a foreign country with which the US has an income tax treaty
2. Who needs to submit the form:
   1. If you aren't an American or a beneficiary of dividends and interest incomes, you need to submit the W-8BEN form to the withholding tax collection agency HSBC Bank (Taiwan) Limited
3. The validity of the form lasts three years since your signature (Example: If W-8BEN form was signed on 30 September 2014, it's valid until 31 December 2017.)
   
   1. W-8BEN forms must be filled out in English
   2. Each holder of a joint account must fill out a separate W-BEN form

For more information about the W-8BEN form, visit www.irs.gov

This information is for reference only. Consult independent individuals for advice if you encounter any problems.

• Your investments in foreign stocks are investing behaviors and the investments are not deposits. Therefore, your capitals are not subject to the protection of CDIC.
• Please remember that, in selecting stocks, the past performance does not indicate the future performance. The price of a stock may fluctuate and the value of your investments may rise or fall. The return of your investments may be less than your initial input.
• If major events occur in the markets or the sovereign rating of the region where the issuing company mainly operates vary, you may not be able to buy or redeem your stocks.
• If the denominating currency of the stock appreciates, the will gain form currency exchange. If the currency depreciates, you will bear the loss from currency exchange.
• How the prices of foreign stocks are determined:
  Prices are determined in the traded value of the stock in the exchange.
• The performance of foreign stocks
  The most direct way to determine the performance of foreign stocks is to see the return rate.
  The calculation is listed below.
  Total return rate = (sum of multiple foreign stocks’ current values – principals)/total invested amount
  Total return rate with interests = (sum of multiple foreign stocks’ current values + accumulated interests – principals)/total invested amount
  The actual gain and loss as well as the return rate should be based on the net received amount.
• The denominating currency of foreign stocks
  The denominating currency of foreign stocks will be determined by the regulations of the exchange
• The redemption of foreign stocks will be charged relevant expenses, including buy fee, redeem fee, and trust fee. The actual charges and taxation of the exchange will be based on the exchange’s announcements. Related information of expenses can be found in the product manual or on the Bank’s/the exchange’s website. 
• The mechanism of the calculation of the foreign stocks’ strike prices.
  The place in which the product is traded could be abroad. The product could be ceased from trading due to mechanisms of foreign exchanges or markets that close the trading early or announce the pause of trading, which may limit the availability to buy and sell the stock. Therefore, the actual strike price will be based on the exchange’s announcements.
• The regulations of the taxation of foreign stocks.
  According to the rules of the US tax law, the cash income derived from sources on the soil of the US to non-US individuals, such as cash dividends, will be subject to 30% tax rate. The standard may vary depending on the content of the trade or the change in the market.
• “Sustainable investments” include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors (collectively, “sustainability”) to varying degrees. Certain instruments we include within this category may be in the process of changing to deliver sustainability outcomes.
  There is no guarantee that sustainable investments will produce returns similar to those which don’t consider these factors. Sustainable investments may diverge from traditional market benchmarks.
  In addition, there is no standard definition of, or measurement criteria for sustainable investments, or the impact of sustainable investments (“sustainability impact”).   Sustainable investment and sustainability impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors.
  HSBC may rely on measurement criteria devised and/or reported by third party providers or issuers.  HSBC does not always conduct its own specific due diligence in relation to measurement criteria. There is no guarantee: (a) that the nature of the sustainability impact or measurement criteria of an investment will be aligned with any particular investor’s sustainability goals; or (b) that the stated level or target level of sustainability impact will be achieved.
  Sustainable investing is an evolving area and new regulations may come into effect which may affect how an investment is categorised or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.