Upon death, however, estate tax could reduce the inherited amount to US$98,289 — compressing the realised CAGR from 12.6% to 7%. Therefore, the key is to choose a jurisdiction with a favourable US tax treaty and minimal secondary taxation. While dividends remain subject to 30% US withholding tax, Hong Kong imposes no estate tax. Buybacks reduce dividend tax impactWith US corporates increasingly favouring buybacks over dividends, the withholding tax gap between domiciles is narrower than many expect. The S&P 500’s 12.6% CAGR may look compelling on paper, but without careful structuring, estate tax, withholding tax and Malaysia’s evolving financial services industry regime can erode much of that advantage.

Source: The Edge Markets March 09, 2026 06:02 UTC