PRESS RELEASE

(Source : Information Services Department)

     The Government Gazette published today (September 1) contains a Legal Notice to the effect that the Secretary for Financial Services and the Treasury has authorised a change in the rate of interest payable on Tax Reserve Certificates. From September 4, 2023 the new annual rate of interest will be 0.9250 per cent against the current rate of 0.8833 per cent, i.e. the new rate will be $0.0771 per month per $100.

     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 periodically revised in line with the market trend. Currently, it is reviewed every month based on the average prevailing interest rate for the 12-month time deposit for $100,000 to $499,999 offered by the three note-issuing banks.

     The new rate will apply to all certificates purchased on or after September 4, 2023. Certificates purchased before September 4, 2023, 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:
 

     This is always subject to the general rule that interest ceases to accrue after 36 complete months.