13 -
New "pay-as-you-earn" tax scheme introduced
The Tax Reserve Certificate (Amendment) Ordinance 1995 and the Tax Reserve Certificate (Fourth Series) (Amendment) Rules 1995 will come into operation on Monday (December 4), a government spokesman announced today (Friday).
"The Inland Revenue Department (IRD) has implemented an additional system for purchasing and redeeming Tax Reserve Certificates (TRC).
"The new scheme, which will initially be piloted in the civil service, will enable civil servants to authorise the Treasury to deduct a specified sum from their monthly salaries for the purchase of TRCs.
"The deduction, which will be recorded on civil servants' monthly salary statements, will be credited to a TRC account maintained by IRD in the taxpayer's
name.
"When tax is due for payment, the demand note will be settled by IRD on its due date by deduction from the credit available in the taxpayer's TRC account." the spokesman said.
The spokesman added that the minimum amount of each purchase of TRCS had been increased from $50 to $300 and that, as from the same day, the annual rate of interest payable on tax reserve certificates will be increased from 5.04% to 5.64%.
Further enquiries may be made by calling the Tax Reserve Certificate Section of the Inland Revenue Department on 2594 3048.
End
No comments yet.
Private notes are available after approval.