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Publications and Press Releases :
Press Release
: News Archives
Interest on Tax Reserve Certificates
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The Government Gazette published
today (March 4) 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. From
March 7, 2005, the new annual rate of interest will be 0.2000% as
against the current rate of 0.1250%, that is, the new rate will
be $0.0166 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
market trends. Currently, it is reviewed every month based on the
average 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 March 7, 2005. Certificates which
were purchased before March 7, 2005 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 the 24-hour information
hotline 1878033. What follows is a summary of the interest rates
for the past months:
* 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,
0.1500% per annum
* for certificates purchased
on or after October 4, 2004 and before December 6, 2004,
0.2500% per annum
* for certificates purchased
on or after December 6, 2004 and before March 7, 2005,
0.1250% per annum
* for certificates purchased
on or after March 7, 2005 until further notice,
0.2000% per annum
This is always subject to the
general rule that interest ceases to accrue after 36 complete months.
Ends/Friday, March 4, 2005
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