PRESS RELEASE
(Source : Government Information Centre)
Interest on Tax Reserve Certificates
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Government Gazette published on 31 May 2002 contains
a Legal Notice to the effect that the Secretary for the Treasury
has authorized a change in the rate of interest payable on Tax Reserve
Certificates. As from 3 June 2002, the new annual rate of interest
will be 0.2812% as against the current rate of 0.5812%, that is
the new rate will be $0.0234 per month per $100.
Tax Reserve Certificates bear simple interest and interest is calculated
monthly (including part of a month) from the date of purchase to
the date of payment of tax.
Interest is only credited when certificates are used to pay tax
and no interest is due where the principal value of a certificate
is repaid to its holder.
The rate of interest payable on Tax Reserve Certificates is periodically
revised in line with the market trend. Currently, it is reviewed
every month based on the average of the prevailing six-month time
deposit interest rates for $100,000 offered by the three note-issuing
banks.
The new rate will apply to all certificates purchased on or after
3 June 2002. Certificates which were purchased before 3 June 2002
will continue to earn interest at the rates prevailing on their
respective purchase dates. More interest rate information can be
found in the Inland Revenue Department website < http://www.info.gov.hk/ird
>. The public can also obtain a copy of Tax Reserve Certificate
Interest Rate Table from our 24-hour information hotline at 1878033.
What follows is a summary of the interest rates for the past months:-
for certificates purchased on or
after
3 December 2001 and before
7 January 2002
0.6292% per annum
for certificates purchased on or after
7 January 2002 and before
4 February 2002
0.4583% per annum
for certificates purchased on or after
4 February 2002 and before
4 March 2002
0.4500% per annum
for certificates purchased on or after
4 March 2002 and before
2 April 2002
0.5292% per annum
for certificates purchased on or after
2 April 2002 and before
6 May 2002
0.7167% per annum
for certificates purchased on or after
6 May 2002 and before
3 June 2002
0.5812% per annum
and for certificates purchased on or after
3 June 2002 until further notice
0.2812% per annum
This is always subject to the general rule that interest ceases
to accrue after 36 complete months.
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