HONG KONG, Jan. 19 – The Secretary for Financial Services and the Treasury have approved an adjustment of interest rates on tax reserve certificates.

The new annual rate of interest will be 0.0433 percent from 0.0667 percent starting January 4. The interest will be credited when the certificates are used to pay tax and no interest is due when the principal value of a certificate is repaid to its holder.

Tax reserve certificates earn simple interest, calculated monthly from purchase date to payment of tax. Currently, interest rates on the certificates are changed regularly depending on the prevailing interest rates for six-month time deposits set by note-issuing banks.

Certificates bought before January 4, 2010 will continue to maintain the prevailing interest rates during their purchase dates.

For more assistance on doing business in Hong Kong email hongkong@dezshira.com.