 |
Publications and Press Releases :
Press Release
: News Archives
Interest on Tax Reserve Certificates
******************************************
Government Gazette published today (September 30)
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 October 4, 2004, the new annual rate of interest will be
0.2500% as against the current rate of 0.1500%, that is the new
rate will be $0.0208 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
October 4, 2004. Certificates which were purchased before October
4, 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 http://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.
Following is a summary of the interest rates for the past months:
for certificates purchased on or after
November
3, 2003 and
before February 2, 2004 |
|
0.0250% per annum |
| |
|
|
for certificates purchased on or after
February 2, 2004 and
before March 1, 2004 |
|
0.0150% per annum |
| |
|
|
for certificates purchased on or after
March 1, 2004 and
before May 3, 2004 |
|
0.0100% per annum |
| |
|
|
for certificates purchased on or after
May 3, 2004 and
before June 7, 2004 |
|
0.0171% per annum |
| |
|
|
for certificates purchased on or after
June 7, 2004 and
before September 6, 2004 |
|
0.0500% per annum |
| |
|
|
for certificates purchased on or after
September 6, 2004 and
before October 4, 2004; and |
|
0.1500% per annum |
| |
|
|
for certificates purchased on or after
October 4, 2004 until further notice.
|
|
0.2500% per annum |
This is always subject to the general rule that interest
ceases to accrue after 36 complete months.
Ends/Thursday, September 30, 2004
NNNN
|
|