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The Government Gazette published on February 29, 2008, 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 3, 2008, the new annual rate of interest will be 1.0500% as against the current rate of 1.2500%, that is the new rate will be $0.0875 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 3, 2008. Certificates which were purchased before March 3, 2008, will continue to earn interest at the rates prevailing on their respective purchase dates. More interest rate information can be found on the Inland Revenue Department website, www.ird.gov.hk. The public can also obtain a copy of the 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 2.6000% per annum
on or after March 5, 2007,
and before June 4, 2007,
for certificates purchased 2.6333% per annum
on or after June 4, 2007,
and before October 2, 2007,
for certificates purchased 2.6167% per annum
on or after October 2, 2007,
and before November 5, 2007,
for certificates purchased 2.6833% per annum
on or after November 5, 2007,
and before December 3, 2007,
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; and
for certificates purchased 1.0500% per annum
on or after March 3, 2008,
until further notice.
This is always subject to the general rule that interest ceases to accrue after 36 complete months.
Ends/Monday, March 3, 2008
Issued at HKT 15:01
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