FAQ on Tax Reserve Certificate

FAQ : Q & A for Tax Reserve Certificates

1.	What are TRCs purchased in respect of tax heldover conditionally in objection cases?[Answer]
2.	How can I make enquiries about TRCs purchased in objection cases, which are not included in my TRC account?[Answer]
3.	Can I redeem TRCs (other than those purchased in objection cases) in my account in any order I like?[Answer]
4.	Do I need to notify the Department if I wish to redeem the TRCs in my account for settlement of my tax liabilities?[Answer]
5.	Can I redeem for cash TRCs in my account and yet earn interest?[Answer]
6.	If I redeem for cash TRCs in my account, when can I expect to receive the refund?[Answer]
7.	How can I open a TRC Account?[Answer]
8.	How can I purchase ordinary TRCs after opening a TRC Account?[Answer]
9.	How can I redeem TRCs for cash?[Answer]


1.	Q:	What are TRCs purchased in respect of tax heldover conditionally in objection cases?

	A:	When an assessment is under objection, the Commissioner may direct that the tax in dispute be heldover conditionally upon the purchase of a TRC of a specified amount. The sum purchased will be applied to settle the tax in dispute or repaid to the taxpayer depending on the final determination of the objection or appeal. Simple interest will be paid only in respect of the capital sum eventually repaid to the taxpayer.

2. Q:
How can I make enquiries about TRCs purchased in objection cases, which are not included in my TRC account?

A:
You can do so by contacting us at taxpay@ird.gov.hk.

3. Q:
Can I redeem TRCs (other than those purchased in objection cases) in my account in any order I like?

A:
If the redemption is for settlement of tax liabilities, it must be done on a First-In-First-Out basis. In the case of redemption for cash, you can redeem the TRCs in any order.

4. Q:
Do I need to notify the Department if I wish to redeem the TRCs in my account for settlement of my tax liabilities?

A:
TRCs purchased under the Electronic Tax Reserve Certificates Scheme will be redeemed automatically on a First-In-First-Out basis for settlement of your tax liabilities. About 2 weeks before the tax due date, we will send a “proposal for redemption” to you showing details of certificates intended to be redeemed and any shortfall to be settled separately.

5. Q:
Can I redeem for cash TRCs in my account and yet earn interest?

A:
No. You can earn interest only if the TRCs are redeemed for settlement of your tax liabilities.

6. Q:
If I redeem for cash TRCs in my account, when can I expect to receive the refund?

A:
It generally takes up to 9 working days during July to December and 12 working days during January to June, to effect refund in respect of TRCs redeemed for cash.

7. Q:
How can I open a TRC Account?

A:
You can apply to open a TRC Account in writing using an IR1306. After processing your application, we will notify you of your TRC Account Number (TAN). Joint-name account is not allowed.

8. Q:
How can I purchase ordinary TRCs after opening a TRC Account?

A:
You can do so through your eTAX Account/PPS/the Internet/ bank ATM, by post or in person. You can also purchase TRCs on a monthly basis through auto-pay arrangements with a bank. TRCs must be purchased in denominations of $300 or above and in multiples of $50.

9. Q:
How can I redeem TRCs for cash?

A:
You can do so by completing and returning to us a redemption form (IR1333). No interest is payable in such cases.


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