The Hong Kong Inland Revenue Department has announced an increase in the annual rate of interest payable on Tax Reserve Certificates from a rate of 0.7500% to a rate of 0.7667% with effect from 3 April 2023. Tax Reserve Certificates bear simple interest, which 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 new rate applies to all certificates purchased on or after 3 April 2023. Certificates purchased before 3 April 2023, will continue to earn interest at the rates prevailing on their respective purchase dates:
Interest on Tax Reserve Certificates is always subject to the general rule that interest ceases to accrue after 36 complete months.