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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 (December 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 January 3, 2006, the
new annual rate of interest will be 2.8500% as against the current
rate of 2.7500%, that is the new rate will be $0.2375 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 January 3, 2006. Certificates which were purchased before
January 3, 2006 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 187 8033. What
follows is a summary of the interest rates for the past months:
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, |
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1.8500% per annum |
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for certificates purchased
on or after October 3, 2005
and before November 7, 2005, |
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2.1333% per annum |
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for certificates purchased
on or after November 7, 2005
and before December 5, 2005, |
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2.4000% per annum |
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for certificates purchased
on or after December 5, 2005
and before January 3, 2006; and |
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2.7500% per annum |
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for certificates purchased
on or after January 3, 2006
until further notice. |
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2.8500% per annum |
This is always subject to the general rule that interest
ceases to accrue after 36 complete months.
Ends/Friday, December 30, 2005
Issued at HKT 15:29
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