Hong Kong's Inland Revenue Department has cut the interest rate on Tax Reserve Certificates to 0.1500% per annum, effective 8 April 2026, down from the current 0.2417%. The new rate, equivalent to HKD 0.0125 per month per HKD 100, reflects declining average time deposit rates among the city's three note-issuing banks and marks the seventh consecutive rate reduction since November 2024.

RF Report

Hong Kong’s Inland Revenue Department announced on 2 April 2026 that starting from 8 April 2026, the new annual rate of interest payable on Tax Reserve Certificates will be 0.1500% against the current rate of 0.2417%, i.e. the new rate will be HKD 0.0125 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. 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 reviewed every month based on the average prevailing interest rate for the 12-month time deposit for HKD 100,000 to HKD 499,999 offered by the three note-issuing banks.

The new rate will apply to all certificates purchased on or after 8 April 2026. Certificates purchased before 8 April 2026 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

4 November 2024, and before 2 December 2024:

 0.7167% per annum
For certificates purchased on or after

2 December 2024, and before 6 January 2025:

 0.5500% per annum
For certificates purchased on or after

6 January 2025, and before 3 February 2025:

 0.4250% per annum
For certificates purchased on or after

3 February 2025, and before 6 October 2025:

 0.3417% per annum
For certificates purchased on or after

6 October 2025, and before 5 January 2026:

 0.2583% per annum
For certificates purchased on or after

5 January 2026, and before 8 April 2026:

 0.2417% per annum
For certificates purchased on or after

8 April 2026, until further notice:

 0.1500% per annum

Interest will cease to accrue after 36 months.