Two kinds of certificate
Ordinary certificates are a "save for tax" scheme open to all taxpayers. Certificates for a "Conditional Standover Order" are a form of security the Commissioner may require when tax under objection or appeal is held over[1]. Ordinary certificates are electronic only: paper certificates were abolished from 1 September 1999, though older paper ones can still be redeemed[1].
| Item | What applies |
|---|---|
| Minimum purchase | HK$300 or above, in multiples of HK$50 |
| Interest rate for certificates issued on or after 8 April 2026 | 0.1500% per annum, until further notice |
| How interest is worked out | Simple interest from purchase to redemption, for a maximum of 36 months |
| Interest if cashed in rather than used for tax | None |
| Redemption proposal before the tax due date | About 2 weeks before |
| Time to receive cash when cashed in | Up to 9 working days in July to December, 12 working days in January to June |
| Accounts per taxpayer | One; joint-name accounts are not allowed |
Opening an account and buying
- Send a completed Application Form IR1306 in hard copy to the IRD's TRCs Section. The IRD then gives you a TRC Account Number (TAN)[1].
- Buy certificates by quoting the 13-digit TAN through eTAX, PPS, internet banking, e-Cheque or a bank ATM, by post with a Purchase Form IR1318 and a crossed cheque, in person at a post office, or every month by bank autopay[1].
- A payment made before your payment provider's daily cut-off is taken as received that day and carries that day's interest rate[1].
Bank autopay needs Form IR1306 (no account yet) or IR1317 (existing account) on paper, because the direct debit authorization goes to the bank for signature checking[1].
How redemption works
About 2 weeks before a tax due date the IRD sends a redemption proposal showing which certificates it will use and the balance you still have to pay. On the due date the certificates are redeemed automatically, first in, first out, and a redemption statement follows[1]. Any tax the certificates do not cover must still be paid by the due date[1]. The automatic service only pays tax charged on the account holder: to use certificates for a partnership's profits tax, send a Redemption Form IR1333 one month before the due date[1].
Why a business might use one
The interest rate is reviewed every month against the average twelve-month time deposit rate for HK$100,000 to HK$499,999 offered by the three note-issuing banks[1], and it is paid only when the certificates settle tax. The practical draw is that money moved into the account each month is set aside for the tax bill, including provisional tax, and pays it on the due date without a separate payment. You can check the account through eTAX, and a mid-year statement each September shows the balance at 31 August[1].
Certificates in objection cases
When an assessment is under objection, the Commissioner may order the disputed tax held over on condition that you buy a certificate of a specified amount. That certificate can only settle the tax on the disputed assessment, and interest is paid only on the part eventually repaid to you[1][2].
Rates and procedures for tax reserve certificates are set by the Government and published by the IRD, whose pages below are the authority over this summary.