Treatment of superannuation schemes administered by the National Provident Fund

2010 legislation clarifies taxation rules for life insurance business in connection with superannuation schemes administered by the National Provident Fund.

Section EY 11 of the Income Tax Act 2007

The application of the taxation rules for life insurance business has been clarified in connection with superannuation schemes administered by the Board of Trustees of the National Provident Fund. The change ensures that the schemes administered by the Board and constituted under the various National Provident Fund Acts are not subject to the life insurance rules in the Income Tax Act 2007.

Key features

Section EY 11(5) now ensures that superannuation schemes administered by the Board and constituted under various National Provident Fund Acts are not subject to the taxation rules for life insurance.

Application date

The change applies from 1 April 2010.