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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 September 30, 2005 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 3, 2005, the new annual
rate of interest will be 2.1333% as against the current rate of
1.8500%, that is the new rate will be $0.1777 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 3, 2005. Certificates which were purchased
before October 3, 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 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
March 7, 2005 and before April 4, 2005, |
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0.2000% per annum |
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for certificates purchased on or after
April 4, 2005 and before May 3, 2005, |
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0.5000% per annum |
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for certificates purchased on or after
May 3, 2005 and before June 6, 2005, |
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0.7500% per annum |
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for certificates purchased on or after
June 6, 2005 and before August 1, 2005, |
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1.0833% per annum |
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for certificates purchased on or after
August 1, 2005 and before September 5, 2005, |
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1.6000% per annum |
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for certificates purchased on or after
September 5, 2005 and before October 3, 2005; and |
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1.8500% per annum |
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for certificates purchased on or after
October 3, 2005 until further notice. |
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2.1333% per annum |
This is always subject to the general rule that interest
ceases to accrue after 36 complete months.
Ends/Monday, October 3, 2005
Issued at HKT 10:01
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