Global Daily Tax News, Hong Kong To Cut Interest On Early Tax Payments, (Apr 6, 2026)

Hong Kong's Inland Revenue Department has announced a cut to the annual rate of interest payable on Tax Reserve Certificates, with effect from April 8, 2026.

The rate of interest will be 0.15 percent, against the current rate of 0.2417 percent, or about HKD0.0125 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. Interest ceases to accrue after 36 months.

The amount paid on such certificates has substantially declined in recent years.