Hong Kong Inland Revenue Department: Starting from January 6th next year, the annual interest rate for purchasing tax-deferred securities will be reduced to 0.425%.

On December 27th, the Hong Kong Inland Revenue Department announced today that starting from January 6, 2025, the new annual rate for interest on tax reserve certificates will be changed from the current 0.5500% to 0.4250%. In other words, based on the new rate, you can earn interest of 0.0354 yuan per month for every 100 yuan. The new rate will apply to all tax reserve certificates purchased on or after January 6, 2025. Tax reserve certificates purchased before January 6, 2025 will still earn interest based on the rate on the day of purchase. It is reported that the interest on tax reserve certificates is calculated on a simple interest basis. Interest is calculated from the day of purchase to the date of using the certificate to pay taxes, on a monthly basis; interest can also be earned proportionally for periods less than one month. Interest can only be calculated when the tax reserve certificate is used to pay taxes. If the principal value of the tax reserve certificate is returned to the holder, no interest will be paid. The interest rate for tax reserve certificates will be based on the average interest rate of 100,000 to 499,999 yuan 12-month fixed deposit accounts in 3 designated banks, with a monthly review. Tax reserve certificates will stop generating interest after 36 months.