IRD lowers tax reserve certificate interest to 0.5500%

This is a reduction from the current rate of 0.7167%.

The Inland Revenue Department (IRD) has announced that the annual interest rate on Tax Reserve Certificates (TRCs) will decrease to 0.5500% starting from 2 December 2024.

This is a reduction from the current rate of 0.7167%. Under the new rate, the interest will amount to $0.0458 per month for every $100 of the certificate's value.

Interest on TRCs is calculated monthly at a simple interest rate, including partial months, from the purchase date to the tax payment date. Interest is credited only when the certificates are used to pay tax, and no interest is paid if the principal is refunded.

The interest rate is reviewed monthly based on the average interest rate for 12-month time deposits of $100,000 to $499,999 offered by the three note-issuing banks.

Certificates purchased before this date will continue to earn interest at the rates applicable on their respective purchase dates.