TO encourage parents to increase savings for their children’s future education, the National Higher Education Fund Corporation (PTPTN) is offering parents up to RM8,000 in tax relief privileges under the National Education Savings Scheme (SSPN).
The tax benefit, which covers the SSPN-i and SSPN-i Plus savings scheme, has been increased to RM8,000 from the previous RM6,000.
This was announced by Finance Minister Lim Guan Eng last year during the announcement of Budget 2019.
As such, parents who opt for savings under SSPN-i Plus are eligible to receive tax relief for deposits up to RM11,000 (RM8,000 for the net savings under the SSPN-i Plus and RM3,000 in takaful contribution).
Depositors who choose the pension scheme, on the other hand, are qualified to enjoy tax relief up to RM15,000 (RM8,000 for net savings under SSPN-i Plus and RM7,000 in takaful contribution).
The objective of offering such privileges to depositors is to improve educational savings for their children among parents, thus reducing dependency on PTPTN loans.There are two categories of qualifications, including a separate assessment that gives a maximum tax relief of RM8,000 a year for both husband and wife, as well as a joint assessment that offers a maximum tax relief of RM8,000 per couple.
Depositors can be natural or adoptive parents or legal guardians who can open the accounts for the benefit of their children.
If the depositor (husband or wife) decides to submit separate tax assessments, they can open a separate account for the same child to be able to enjoy a maximum tax relief up to RM8,000 per person.
Besides that, parents can also get an additional benefit via a competitive dividend given for each year, which is considered a profitable rate.
The eligibility condition for tax relief for SSPN is calculated based on the net savings amount for the current year, with PTPTN encouraging depositors to start their savings from January to December to ensure they keep up consistent savings, without it becoming a burden.
SSPN 2019 draw
With these initiatives, the goal is to acknowledge and reward the sacrifices made by parents as depositors committed in starting a savings plan for the future education of their children.
Unlike in previous years, PTPTN will be providing two categories of prizes this year, including Cabutan WOW! SSPN-i Plus and Cabutan 15 Tahun SSPN-i.
This year, in conjunction with the 15th anniversary of SSPN-i, PTPTN has introduced Cabutan 15 Tahun to commemorate the occasion.The last time it has offered prizes to SSPN-i depositors was in 2015.
Both prize draws offer two categories, namely series draw (promotional period in three series from July to December 2019) and an annual draw, with the promotional period running from January to December 2019.
The series draw will see five depositors winning RM15,151.15 each for each promotional period, while 15 depositors will each walk away with RM3,000 under Cabutan WOW! SSPN-i Plus.
The grand prize for Cabutan 15 Tahun SSPN-i annual draw is RM151,515.15 cash, while for cabutan WOW! is Proton X70 Premium.
PTPTN has allocated RM1.1mil to reward 1,726 depositors in its prize draws.
Source: The Star https://bit.ly/2R56rUT
Photo: singaporemotherhood.com