On December 27, the Hong Kong Inland Revenue Department announced today that starting from January 6, 2025, the new annual interest rate payable on tax-saving bonds will be changed from the current 0.5500% to 0.4250%. Tax-saving bonds purchased before January 6, 2025, will still calculate interest based on the rate on the date of purchase.
According to Zhito Finance APP, on December 27, the Hong Kong Inland Revenue Department announced today that starting from January 6, 2025, the new annual interest rate payable on tax-saving bonds will be changed from the current 0.5500% to 0.4250%. According to the new rate, a monthly interest of 0.0354 yuan can be earned for every 100 yuan. The new interest rate will apply to all tax-saving bonds purchased on or after January 6, 2025. Tax-saving bonds purchased before January 6, 2025, will still calculate interest based on the rate on the date of purchase.
It is reported that the interest on tax-saving bonds is calculated on a simple interest basis. The interest is calculated monthly from the date of purchase to the date of using the bond to pay taxes; for periods of less than one month, interest can also be earned proportionally. Interest can only be calculated when the tax-saving bond is used to pay taxes. If the principal value of the tax-saving bond is returned to its holder, no interest will be paid.
The interest rate for tax-saving bonds will reference the average interest rate of 12-month fixed deposits between 100,000 and 499,999 yuan at three note-issuing banks and will be re-evaluated monthly. Tax-saving bonds will stop earning interest after 36 months.