The recently approved Ministerial Regulation No. 292 amended the personal income tax exemptions on income such as money or any benefits received from the Provident Fund.
Before the amendment, the exemption was available only upon the death of the income recipient. Now it applies where an employee retires at the age of 55 or older, or where an employee retires before reaching 55 years old, but the money is retained in the fund when he/she reaches age 55.
As assessable income is exempted from inclusion for computation of income tax payment, this amendment will ensure support of an employee after retirement.
Contact MSNA’s tax advisors for personal income tax preparation and submission.