Expanded Tax Exemptions for Provident Fund Distributions

Employees under 55 who participate in their employer's provident fund will be exempt from income tax with respect to any amounts maintained in such fund upon resignation, provided that such amounts remain in the provident fund until the employee reaches 55, dies or becomes disabled.  

Upon reaching 55, the employee may then be able to receive distributions from the provident fund on a tax free basis (Ministerial Regulation No. 292 and Notification of the Revenue Department regarding income tax No. 223).  

This exemption is retroactive, applying from 1 January 2010.