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Publications and Press Releases :
Press Release
: News Archives
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PRESS RELEASE
(Source : Government Information Centre)
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Interest on Tax Reserve Certificates
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Government Gazette published on August 1, 2003 contains
a Legal Notice to the effect that the Secretary for Financial Services
and the Treasury has authorized a change in the rate of interest
payable on Tax Reserve Certificates. As from August 4, 2003, the
new annual rate of interest will be 0.0417% as against the current
rate of 0.0500%, that is the new rate will be $0.0034 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
August 4, 2003. Certificates which were purchased before August
4, 2003 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 187
8033. What follows is a summary of the interest rates for the past
months:-
for certificates purchased on or
after June 3, 2002 and before
July 2, 2002,
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0.2812% per annum |
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for certificates purchased on or
after July 2, 2002 and before
November 4, 2002, |
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0.1908% per annum |
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for certificates purchased on or
after November 4, 2002 and before
December 2, 2002, |
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0.2308% per annum |
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for certificates purchased on or
after December 2, 2002 and
before February 4, 2003, |
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0.0583% per annum |
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for certificates purchased on
after February 4, 2003 and
before June 2, 2003, |
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or 0.0542% per annum |
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for certificates purchased on or
after June 2, 2003 and
before August 4, 2003; and |
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0.0500% per annum |
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for certificates purchased on
or
after August 4, 2003 until further notice. |
0.0417% per annum |
This is always subject to the general rule that interest ceases
to accrue after 36 complete months.
End/Friday, August 1, 2003
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