Hong Kong Again Slashes Interest On Early Tax Payments

The Hong Kong Inland Revenue Department has announced a further reduction to the interest rate payable on Tax Reserve Certificates.

From June 7, 2021, the new annual rate of interest will be 0.0500 percent, down from 0.0833 percent. As such, the new rate is equal to HKD0.0042 per month per HKD100.

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. The rate of interest payable is periodically revised in line with the market trend. Hong Kong has cut the amount of interest it pays on tax overpayments and prepayments considerably in recent quarters, from 0.2 percent a year earlier.

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