FBR allows provident fund balances transfer to VPF

The Federal Board of Revenue (FBR) has allowed transfer of provident fund balances to the approved Voluntary Pension Funds to promote and regulate development of private pension schemes in the country. In this regard, the board has amended Income Tax Rules, 2002 through a notification issued on Wednesday.
The Securities and Exchange Commission of Pakistan (SECP) had approved six pension funds under the Voluntary Pension System Rules, 2005. The idea was to facilitate private pension schemes and funds in Pakistan. In order to create linkages between these Voluntary Pension Funds with the existing occupational savings schemes, the SECP had proposed to allow the subscriber of a recognised provident fund to transfer funds to a Voluntary Pension Fund under Voluntary Pension System Rules, 2005. For this purpose, amendments in Rules 103, 104, 105 and 106 of the Income Tax Rules, 2002 have been made through SRO 815(I)/2008.