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THE government launched Budget 2021 as an expansionary budget to support Malaysians and develop the economy.
Through tax measures tabled in the recent Budget 2021, more incentives for tax relief have been introduced to relieve the people’s burden with regards to uncertainties surrounding the pandemic.
One of the incentives includes maintaining tax relief of up to RM8,000 for deposits to the National Education Savings Scheme (SSPN), with an extension until the 2022 tax assessment year.
SSPN contributors laud the government’s initiative
Parents are encouraged to start saving early for their children’s education.
An online survey revealed that an average number of SSPN contributors had a positive reaction to this news, and they willingly accepted the government’s decision.
According to Lee Shaw Feng, this initiative will motivate parents to start investing early for their children’s education while benefiting through these tax relief privileges.
Muhammad Ridzuan Zulkepory says that with the tax relief provision, he will be able to increase his deposits to SSPN while depending less on educational loans and relying more on his own savings for the sake of his children’s future.
Budget 2021 proposes tax deduction within the education field for SSPN be extended for another two years until the 2022 tax assessment year for SSPN deposits with a maximum tax relief of up to RM8,000.
This tax benefit is provided to parents, adoptive parents or legal guardians who deposit their savings in an SSPN account for their child’s benefit. Contributors will enjoy a tax relief of up to a maximum of RM8,000 per year, depending on their total net savings this year.
Parents who decide to submit separate tax assessments and open separate SSPN saving accounts for the same child will be able to enjoy a maximum tax relief of up to RM8,000 each per year.
The same applies for parents that submit tax assessments together yet open separate SSPN savings accounts, as they are also eligible for a maximum tax relief of up to RM8,000 per year.
Meanwhile, the National Higher Education Fund Corporation (PTPTN) also expressed their gratitude to Malaysian Prime Minister Tan Sri Muhyiddin Yassin for the initiative provided to SSPN contributors in the budget.
PTPTN also called upon more Malaysian to continue using SSPN as their main choice for higher education savings, keeping in line with the government’s efforts in providing saving privileges through the Budget 2021 incentive.
For more information, visit SSPN’s website here.
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