THE Malaysian government is targeting the 2021 Budget to be an expansionary budget that will help support the rakyat and the country's economic development.
Through the tax measures in the recently tabled 2021 Budget, income tax relief incentives were introduced to reduce the rakyat's burden due to uncertainty surrounding the pandemic.
One of the incentives is to maintain the income tax exemption for the National Education Savings Scheme (SSPN) for net savings of up to RM8,000, and extending the exemption until 2022.
Parents are encouraged to start saving early for their children's education. - SSPN
SSPN contributors reacted positively and welcomed the government's announced proposal, as per an online survey.
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 said that with the tax exemption given, he can increase the amount of savings in his SSPN account as well as reduce his dependence on education loans. Instead, he can utilise the savings in the SSPN account for his children's education in the future.
The 2021 Budget proposes that the tax deduction for education under the National Education Savings Scheme (SSPN) be extended for another two years, until 2022. A maximum tax exemption of up to RM8,000 will be applicable for SSPN net savings of the current year.
This tax relief will also be given to parents, adoptive parents or legal guardians, and will be kept in an SSPN account for the benefit of the child. Contributors can also enjoy tax relief benefits up to a maximum of RM8,000 per year, subject to the current year's net savings amount.
Parents who make separate assessments and open a separate SSPN savings account for the same child will also be given relief up to a maximum of RM8,000 per person per year.
Similarly, parents who make a joint assessment and open a separate SSPN savings account are also eligible for relief up to a maximum of RM8,000 per year.
In the meantime, through a statement, the National Higher Education Fund Corporation (PTPTN) expressed its appreciation and thanks to the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, for the initiative given to SSPN contributors in the 2021 Budget.
PTPTN also calls on the rakyat to continue making SSPN their main option to save for higher education. This is in line with the government's efforts to provide savings benefits through the 2021 Budget incentive.
For more information, visit the SSPN website today.