Provident Fund Audit Services  Bangladesh

A provident fund is a government-managed retirement savings scheme where both employer and employee contribute a portion of the employee’s salary. The fund accumulates over the employee’s working life, earning interest, and can be withdrawn upon retirement or for specific needs. It ensures financial security post-retirement and often provides tax benefits.

There are three types of provident fund:

  • Statutory provident fund
  • Recognized provident fund
  • Unrecognized provident fund
Statutory Provident Fund (SPF):
  • Who it’s for: Government and semi-government employees.
  • Tax Treatment: Contributions, interest earned, and withdrawals are all tax-exempt.
  • Management: Managed by the government.
Recognized Provident Fund (RPF):
  • Who it’s for: Employees of private sector organizations with recognized provident fund schemes.
  • Tax Treatment: Employee contributions are tax-deductible, and employer contributions are tax-free up to a certain limit. Interest earned is tax-free up to a specified rate. Withdrawals are tax-free if certain conditions are met.
  • Management: Approved and regulated by the Commissioner of Income Tax.
Unrecognized Provident Fund (URPF):
  • Who it’s for: Private sector employees, but the fund is not recognized by the Commissioner of Income Tax.
  • Tax Treatment: Employee contributions are not eligible for tax deduction, and interest earned is not taxed annually but is taxable upon withdrawal. Employer contributions and interest on such contributions are taxed as salary income in the year of withdrawal.
  • Management: Managed by private employers without approval from tax authorities.
Right Solution provides Provident Fund Audit services in the following ways:
  • Thorough Examination: Conducting comprehensive audits of provident fund records to ensure accuracy and compliance.
  • Expert Guidance: Offering expert advice and assistance to ensure adherence to regulatory requirements.
  • Risk Assessment: Identifying and mitigating potential risks related to provident fund management.
  • Efficient Processes: Streamlining audit processes to maximize efficiency and minimize disruption to operations.
  • Transparent Reporting: Providing clear and transparent reports on audit findings and recommendations for improvement.