The syariah-compliant National Education Savings Scheme (SSPN) was introduced by the National Higher Education Fund Corporation (PTPTN) for higher education.
Deputy Chief Executive (Policy & Operation), PTPTN, Mastura Mohd Khalid said that privileges included a maximum tax relief up to RM8,000 for savings in the SSPN-i and SSPN-i Plus.
“SSPN-i and SSPN-i Plus are the best educational savings plans offering tax relief for parents as depositors.
“There are many parents who have been saving for their children for several years and have been enjoying the tax relief over the years.
“Therefore, for parents who want to enjoy the tax relief this year, they have to make savings before Dec 31,” she said.
The tax relief for SSPN-i and SSPN-i Plus are calculated based on the current year’s net savings amount and those eligible for tax relief include:
1. Parents and adopted parents/legal guardians who have been saving in the SSPN accounts for the benefit of their children are given tax relief up to RM8,000 a year, depending on the current year net savings amount.
2. Parents who have separate tax assessment and have opened SSPN savings accounts separately for the same child, are given a maximum tax relief up to RM8,000 each for that year.
3. Parents who have joint tax assessment and have opened SSPN savings accounts separately are given a maximum tax relief up to RM8,000 a year.
Mastura explained, however, that individuals who have been saving for their own selves would not get tax relief.
She said that the rationale of tax relief privileges is to encourage more parents to continuously opt for educational-purpose savings on a yearly basis.
Apart from tax relief, parents who opt for SSPN educational savings would get competitive dividend as well as comprehensive takaful protection.
“If there is death or permanent disability, their children or beneficiaries will get takaful benefit under SSPN-i and up to RM1mil under SSPN-i Plus, subject to terms and conditions.
“This proves that this savings scheme ensures that their children can study using the savings even if anything happens to their parents in the future,” she said.
Since the launch of SSPN in 2004, 4.29 million accounts have been opened for both SSPN-i and SSPN-i Plus savings accounts, with total deposits worth RM5.17bil up to Oct 31, 2019, said Mastura.
The tax relief on SSPN savings was instituted since the 2007 assessment year, amounting to RM3,000 per year for depositors.
According to Mastura, the tax relief amount was increased to RM6,000 in 2013, and was raised to RM8,000 a year via Budget 2019.
PTPTN is targetting RM1bil in total savings with 500,000 new account holders this year.
“We also give out cash prizes in draws for SSPN-i and SSPN-i Plus depositors,” she added.
Currently, PTPTN is offering prizes in two categories – Cabutan WOW! for SSPN-i Plus depositors and Cabutan 15 Tahun for loyal SSPN-i depositors, with prizes worth a total RM1.1mil.
“I appeal to parents who may have missed out on this tax relief privilege in the previous years, to start saving in SSPN or to increase their deposits before Dec 31 in order to be eligible for tax relief in 2019.
“Parents can open account or top up deposits via online at www.lovesspn.com. So don’t wait – save, save, save for the future,” Mastura said.
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