Interest on Tax Reserve Certificates
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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 12-month time deposit for $100,000 to $499,999 offered by the three note-issuing banks.
The new rate will apply to all certificates purchased on or after March 6, 2023. Certificates purchased before March 6, 2023, will continue to earn interest at the rates prevailing on their respective purchase dates. Below is a summary of the interest rates for the past periods:
| For certificates purchased on or after June 7, 2021, and before June 6, 2022: |
0.0500 per cent per annum |
| For certificates purchased on or after June 6, 2022, and before October 3, 2022: |
0.1333 per cent per annum |
| For certificates purchased on or after October 3, 2022 and before November 7, 2022: |
0.1750 per cent per annum |
| For certificates purchased on or after November 7, 2022, and before December 5, 2022: |
0.3167 per cent per annum |
| For certificates purchased on or after December 5, 2022, and before January 3, 2023: |
0.4000 per cent per annum |
| For certificates purchased on or after January 3, 2023, and before March 6, 2023: |
0.5833 per cent per annum |
| For certificates purchased on or after March 6, 2023, until further notice: |
0.7500 per cent per annum |
This is always subject to the general rule that interest ceases to accrue after 36 complete months.
Ends/Friday, March 3, 2023
Issued at HKT 12:00
Issued at HKT 12:00
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