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Publications and Press Releases :
Press Release
: News Archives
Interest on Tax Reserve Certificates
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Government Gazette published on June 4, 2004 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 June 7, 2004, the new
annual rate of interest will be 0.0500% as against the current rate
of 0.0171%, that is the new rate will be $0.0041 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
June 7, 2004. Certificates which were purchased before June 7, 2004
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 < www.ird.gov.hk
>. 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 August 4, 2003
and beforeSeptember 1, 2003, |
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0.0417% per annum |
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for certificates purchased
on or afterSeptember 1, 2003
and before November 3, 2003, |
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0.0375% per annum |
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for certificates purchased
on or after November 3, 2003
and before February 2, 2004, |
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0.0250% per annum |
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for certificates purchased
on or after February 2, 2004
and before March 1, 2004, |
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0.0150% per annum |
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for certificates purchased
on or after March 1,2004
and before May 3, 2004, |
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0.0100% per annum |
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for certificates purchased
on or after May 3, 2004
and before June 7, 2004; and |
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0.0171% per annum |
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for certificates purchased
on or after June 7, 2004
until further notice. |
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0.0500% per annum |
This is always subject to the general rule that interest
ceases to accrue after 36 complete months.
Ends/Friday, June 4, 2004
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