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Government Gazette published today (January 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 February 2, 2009, the new annual rate of interest will be 0.2667% as against the current rate of 0.3667%, that is the new rate will be $0.0222 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 February 2, 2009. Certificates which were purchased before February 2, 2009 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 2.3333% per annum
on or after
December 3, 2007 and
Before February 4, 2008,
for certificates purchased 1.2500% per annum
on or after
February 4, 2008 and
before March 3, 2008,
for certificates purchased 1.0500% per annum
on or after
March 3, 2008 and
before April 7, 2008,
for certificates purchased 0.4667% per annum
on or after
April 7, 2008 and
before December 1, 2008,
for certificates purchased 0.4500% per annum
on or after
December 1, 2008 and
before January 5, 2009,
for certificates purchased 0.3667% per annum
on or after
January 5, 2009 and
before February 2, 2009;
and
for certificates purchased 0.2667% per annum
on or after
February 2, 2009
until further notice.
This is always subject to the general rule that interest ceases to accrue after 36 complete months.
Ends/Friday, January 30, 2009
Issued at HKT 16:01
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