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Press Release
: News Archives
Interest on Tax Reserve Certificates
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Government Gazette published today (September 28) 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 2, 2007, the new annual
rate of interest will be 2.6167% as against the current rate of
2.6333%, that is the new rate will be $0.2180 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 October 2, 2007. Certificates which were purchased before
October 2, 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 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,
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2.6167% per annum |
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for certificates purchased
on or after March 5, 2007
and before June 4, 2007, |
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2.6000% per annum |
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for certificates purchased
on or after June 4, 2007
and before October 2, 2007; and
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2.6333% per annum |
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for certificates purchased
on or after October 2, 2007
until further notice.
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2.6167% per annum |
This is always subject to the general rule that
interest ceases to accrue after 36 complete months.
Ends/Friday, September 28, 2007
Issued at HKT 15:30
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