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Publications and Press Releases :
Press Release
: News Archives
Interest on Tax Reserve Certificates
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Government Gazette published today (September 3) contains
a Legal Notice to the effect that the Secretary for Financial Services
and the Treasury has authorised a change in the rate of interest
payable on Tax Reserve Certificates.
As from September 6, 2004, the new annual rate of interest will
be 0.1500% (as against the current rate of 0.0500%), that is the
new rate will be $0.0125 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
September 6, 2004. Certificates which were purchased before September
6, 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 |
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0.0375% per annum |
on or after September 1, 2003 |
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and before November 3, 2003, |
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for certificates purchased
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0.0250% per annum |
on or after November 3, 2003 |
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and before February 2, 2004,
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for certificates purchased |
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0.0150% per annum |
on or after February 2, 2004 |
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and before March 1, 2004, |
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for certificates purchased |
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0.0100% per annum |
on or after March 1, 2004 |
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and before May 3, 2004, |
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for certificates purchased |
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0.0171% per annum
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on or after May 3, 2004 |
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and before June 7, 2004, |
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for certificates purchased |
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0.0500% per annum |
on or after June 7, 2004 |
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and before September 6, 2004; |
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for certificates purchased
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0.1500% per annum |
on or after September 6, 2004
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until further notice. |
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This is always subject to the general rule that interest
ceases to accrue after 36 complete months.
Ends/Friday, September 3, 2004
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