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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 March 2, 2007 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 March 5, 2007, the new annual rate of interest will be 2.6000
(as against the current rate of 2.6167), that is the new rate will
be $0.2166 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
prevailing interest rate for the six-month time deposit below $100,000
offered by the three note-issuing banks.
The new rate will apply to all certificates
purchased on or after March 5, 2007. Certificates which were purchased
before March 5, 2007 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 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, |
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2.7500% per annum |
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for certificates purchased
on or after January 3, 2006
and before December 4, 2006, |
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2.8500% per annum |
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for certificates purchased
on or after December 4, 2006
and before February 5, 2007, |
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2.6000% per annum |
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for certificates purchased
on or after February 5, 2007
and before March 5, 2007; and |
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2.6167% per annum |
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for certificates purchased
on or after March 5, 2007
until further notice. |
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2.6000% per annum |
This is always subject to the general
rule that interest ceases to accrue after 36 complete months.
Ends/Friday, March 2, 2007
Issued at HKT 15:31
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