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Provident fund tax reduction of private companies

by Afonso
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The National Board of Revenue (NBR) has issued a notification to reduce the tax on provident fund or provident fund income of private sector employees to 15 percent. On December 10, NBR chairman Abu Hena said. This notification was issued signed by Rahmatul Munim.

This notification is stated to be effective immediately.

According to the notification, the National Board of Revenue, by virtue of sub-section (1) of section 76 of the Income Tax Act, 2023 (Act No. 12 of 2023), recognized provident funds, approved provident funds, approved old-age funds and approved pension funds of private institutions. For the tax year 2020-2024, the income tax rate is 27.5 percent on the income arising from and 30 percent on failure to comply with the conditions, reducing the tax rate at both places and fixing only the tax rate at 15 percent.



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