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  Home > Tax Information - Others > Tax Reserve Certificates

Tax Reserve Certificates


There are two types of Tax Reserve Certificates (TRCs): the ordinary TRCs and the TRCs for "Conditional Standover Order".

Ordinary TRCs are introduced to assist taxpayers to build up funds for tax payment. To use this service, taxpayers can join the "Electronic TRCs Scheme". Civil servants and civil service pensioners can also opt for the "Save-As-You-Earn" Scheme.

Ordinary TRCs are now issued only in electronic form. Paper TRCs had been abolished with effect from 1 September 1999.

TRCs for "Conditional Standover Order" are a form of security, which taxpayers are required to provide for the payment of tax held over upon objections or appeals against assessments. Such TRCs are issued only in paper form.

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The Electronic Tax Reserve Certificates (TRCs) Scheme 

The Electronic TRCs Scheme is a "Save for Tax" scheme open to all taxpayers to assist them to build up funds for tax payment. It provides TRC users with a full range of electronic services, including purchase through various electronic channels (monthly bank autopay, telephone, internet and bank automated teller machine) and an auto tax payment service .

Opening a TRC Account

Please furnish an Application Form (IR1306) in hardcopy to our TRCs Section. After processing your application, we will notify you of your TRC Account Number (TAN). With this number, you can purchase and redeem electronic TRCs.

Each taxpayer can only open one TRC account. Joint-name account is not allowed.

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Optional "Save-As-You-Earn Scheme" (SAYE) for Civil Servants 

The optional "Save-As-You-Earn Scheme" is a "Save for Tax" scheme to assist serving civil servants and civil service pensioners to build up funds for tax payment. Direct deduction will be made from your monthly salary / pension to purchase TRCs. A full range of electronic services is on offer. In addition to acquisitions through salary / pension deduction, you can purchase TRCs via various electronic channels (monthly bank autopay, telephone, internet and bank automated teller machine). An auto tax payment service is also provided when your tax falls due.

Joining the SAYE Scheme

Simply furnish an Authorization Form to authorize a monthly deduction (at a minimum of $300 and in multiples of $50) from your salary or pension each month to purchase TRCs. TRCs purchased will be deposited into your TRC account. The authorization form should reach the Treasury one month before the effective month in which deduction is made.

Upon joining the scheme, you will be notified of your TRC Account Number (TAN). You can purchase and redeem TRCs at any time with your TAN.

For serving civil servants, the Authorization Form (GF 605) can be downloaded from IRD website or CCGO Intranet. The completed form should be returned to the Treasury via your Head of Department.

For civil service pensioners, the Authorization Form (Try 489) is available from the Pensions Division of the Treasury or the Pensioners' Welfare Unit of Civil Service Bureau.

Please note that a fresh Authorization Form (Try 489) must be completed by a pensioner notwithstanding that he has formerly participated in the Scheme as a serving civil servant.

Changing or terminating the monthly deduction from salary or pension

Please inform the Director of Accounting Services by completing a fresh Authorization Form. Notification of changes or termination of deduction should reach the Treasury one month before the effective month in which the change or termination is made.

Any balance of TRCs in your account after termination of the monthly deduction will be carried forward for your tax payment in future.

For more information, serving civil servants may contact their respective Departmental Secretary/ Personnel Registry direct and civil service pensioners may contact the Pensions Division of Treasury at 2829 5113 or 2829 5114.

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Purchasing TRCs 

With a TRC account, you may purchase TRCs monthly through bank autopay, or at any time via a telephone, the Internet, a bank automated teller machine, by post or in person. The TRCs so purchased will be deposited into your TRC account. 

TRCs must be issued in denominations of $300 or above and in multiples of $50. TRCs will earn interest only when they are redeemed to pay the holder's tax. Please note that if they are redeemed for other purposes, no interest will be payable.

Purchase channels:-

  1. Bank autopay

You may purchase TRCs monthly at a specified sum by bank autopay. Deductions are normally made from your bank account within the first 5 working days of each month. To effect bank autopay, please submit a Direct Debit Authorization Form (IR1306 for those without a TRC account and IR1317 for those having a TRC account). Please do not submit forms IR1306 and IR1317 in electronic form as these forms contain a "Direct Debit Authorization" which must be sent to banks in hardcopy for signature verification. After an approval notifications is received from the bank, it normally takes about 7 working days for setting up an autopay arrangement and sending you confirmation by post. To change or terminate bank autopay instructions, please notify our TRCs Section by completing an Application Form IR1317. Please note that the completed form (in hardcopy) must reach us 15 working days before the date of change or termination. TRCs still remaining in your account after termination of autopay will be carried forward for your tax payment in future.
     
  2. Telephone

For purchase of TRCs by telephone, you need a PPS account which can be opened with a bank ATM card at any of the PPS terminals installed at outlets of most merchants who have joined PPS. To purchase TRCs by phone, please dial 18011 with a tone phone for bill registration (using the TAN) and 18031 for bill payment. The merchant code for the Inland Revenue Department is "10".
     
  3. Internet
     
    You can purchase TRCs via a personal computer with an internet connection through "eTAX", "PPS by Internet", the internet bill payment service of your banks or by e-Cheque.
     
  4. Bank Automated Teller Machine (ATM)

TRCs can be purchased with your ATM card at any of the HSBC/Hang Seng Bank ATMs with the "Bill Payment" signage or the JETCO ATMs with the "JET PAYMENT" logo.
   

To purchase TRCs by e-payments, please note the following: 

  • Enter your 13-digit TRC Account Number (TAN) in the transaction.
  • Payments made before the daily cut-off time of your selected payment service provider will be taken as received on the same day and the TRC will bear that day's prevailing interest rate.
  • Each ATM card or bank account has a daily transaction limit. Please consult your bank about the limit.
     
  5. By Post 

Please send in a completed Purchase Form (IR1318) together with a crossed cheque to the Inland Revenue Department, P.O. Box 28282, Gloucester Road Post Office, Hong Kong. The cheque should be crossed and made payable to "The Government of the Hong Kong Special Administrative Region" or "The Government of the HKSAR". Please write your TAN on the back of the cheque.  Please ensure sufficient mailing time and postage to make delivery in order.  Please do not send in cash or post-dated cheque.  Underpaid mail will be rejected.
     
  6. In Person

You can purchase TRCs at Post Offices by EPS, cheque or cash by quoting your TAN. For addresses and opening hours of post offices, please visit the Hongkong Post web site www.hongkongpost.hk or call their enquiry hotline 2921 2222.

 

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The "Auto Tax Payment Service" 

Both the "Electronic Tax Reserve Certificates" Scheme and the "Save-As-You-Earn" Scheme offer "Auto Tax Payment Service" which ensures on-time tax payment. On the due date of payment, the TRCs in your account will be automatically redeemed on a First-In-First-Out basis for payment of your tax and a Redemption Statement will be sent to you showing movements in your TRC account.

Around 2 weeks before the due date of payment, we will send a redemption proposal showing details of certificates intended to be redeemed and the balance of tax payable by you. If there is no addition to or withdrawal from your account and the amount of tax due remains unchanged from the date of proposal to the tax due date, please follow the proposal and pay the balance of tax payable on or before the due date. Otherwise, you should adjust and pay such amount not met by your certificates.

The service covers only tax charged on the account holder. To redeem TRCs for payment of property tax for jointly-owned properties, please submit a Redemption Form (IR1333) one month before the tax due date.

Any balance of tax not covered by the TRCs redeemed shall be payable on or before the tax due date. TRCs not redeemed for tax payment will be carried forward in your TRC account.

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Account Statement and Account Details Enquiry 

For the "Electronic Tax Reserve Certificates" Scheme and the "Save-As-You-Earn" Scheme, a Mid-year Statement will be issued to you in September every year showing your account balance as at 31 August of the year. A statement of TRCs can also be requested by completing and returning an Application Form (IR1334).

Individual TRCs account holders can also check and print the account details anytime via their eTAX Accounts if they are registered eTAX Account holders.

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Refund 

To get a refund on the Electronic TRCs purchased, please furnish a Redemption Form (IR1333) to our TRCs Section.

As the TRCs so refunded are not redeemed for payment of your tax, no interest will be payable.

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Interest Rate Update and Interest Calculation 

The information on this home page is for reference only. The interest payable on tax reserve certificates are calculated based on the prescribed rate of interest published in the Gazette. In case of dispute the Gazette rate shall prevail.

The interest rate on TRC is reviewed every month based on the average of the prevailing six-month time deposit rates below $100,000 offered by the three note-issuing banks.

The interest rate on TRC is 0.0433% per annum with effect from 4 January 2010. This rate will apply to all ordinary TRCs issued on or after the above date until further notice. Ordinary TRCs which were issued before such date will continue to earn interest at the rates in force at their respective dates of issue.

Please refer to the Tax Reserve Certificates (Rate of Interest) (Consolidation) Notice Schedule for the previous TRC interest rates.

Interest payable on an ordinary TRC is governed by the following rules:-

  • The TRC will earn interest only when used for payment of the holder's tax.
  • Once purchased, the TRC will bear the interest rate prevailing at the date of purchase.
  • The TRC will bear simple interest which is calculated from the date of purchase to the date of redemption.
  • The TRC will earn interest for a maximum period of 36 months.

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Paper Tax Reserve Certificates (TRCs) 

Paper certificates are not issued for ordinary TRCs from 1 September 1999. However, paper TRCs bought before that day can still be redeemed for paying the holder's tax or for a refund at its face value.

To redeem paper TRCs for payment of tax, please complete and sign the Redemption Instructions on the reverse side of the certificates and send them in together with your tax demand note 6 weeks before the tax due date. If the TRCs are not sufficient to cover your tax liability, a crossed cheque payable to "The Government of the HKSAR" should also be enclosed for the difference between the tax payable and the principal of the TRCs. Interest and surplus principal of the redeemed TRCs, if any, will be refunded to you by post.

To redeem paper TRCs at face value, please complete and sign the Redemption Instructions on the reverse side of the certificate. No interest will be payable on such redemption.

All signed certificates should be forwarded to our TRCs Section at 5/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong.

If the paper TRC is lost, redemption will only be considered upon submission of a Letter of Indemnity. An application for a duplicate paper TRC can be made in writing at a payment of $140.

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TRCs for "Conditional Standover Order" 

When an assessment is under objection or appeal, the Commissioner may order the tax in dispute be held over conditionally upon the purchase of a TRC. The TRC can be issued in whatever amount specified by the Commissioner and it can only be used to settle the tax due on the assessment in dispute.

The TRCs so purchased will bear simple interest but interest is payable only on that part of the capital sum eventually repaid to taxpayer upon final determination of the objection or appeal. For a TRC for "Conditional Standover Order" issued on or after 1 September 1999, interest is payable from the date of issue of the TRC to the date of final determination of the objection or appeal at such rates in force from time to time over the tenure of the TRC.

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Forms 

You can:

  1. download the required forms (except Try 489) from Internet,
  2. get a fax copy of them (except Try 489 and IR1334) from our Fax-A-Form Service (telephone no. 2598 6001), or
  3. obtain the forms (except Try 489 and GF 605) from the Inland Revenue Department at 1/F or 5/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong.

 

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Enquiries and Submissions 

For further information, please call 187 8033.

The opening hours of the TRCs Section are:-

Monday to Friday 8:15 a.m. to 12:30 p.m. and
  1:30 p.m. to 5:30 p.m.

Written enquiries can be sent to 5/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong.

Enquiries and submissions can also be made electronically. Please refer to the web page on Electronic Submission of Information for the prescribed format, manner and procedures of filing electronic documents and the e-mail address. Please do not submit forms IR1306 and IR1317 in electronic form as these forms contain a "Direct Debit Authorization" which must be sent to banks in hardcopy for signature verification.

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FAQ

Q & A for Tax Reserve Certificates

 

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