Tax Exemption For National Education Savings Scheme (SSPN) To Be Extended Until 2022

With Budget 2021 having been past just last week, many of its proposed incentives are currently in motion. And in response to the current pandemic, tax incentives have since been expanded to support those who may still be struggling to make ends meet.

One of the many incentives proposed by the 2021 budget includes extending tax exemptions for the National Education Savings Scheme (SSPN) until 2022.

As reported by Harian Metro, an online survey found that SSPN depositors welcomed this news with open arms. Depositors commented on how an extension will encourage more parents to invest early for their child’s education, while also lowering their dependency on education loans in the future as well.

Parents, adoptive parents and legal guardians will be able to make a maximum tax exemption of up to RM8,000 per year, subject to that current year’s net savings amount.

Parents who make separate assessments and open a separate SSPN savings account on the same child are also given the same relief, and similarly, parents who make a joint assessment and open a separate SSPN savings account are eligible to receive the tax exemption as well.

PTPTN thanked the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, for providing this initiative towards SSPN and its depositors. PTPTN also calls for Malaysians to make SSPN their first choice when saving up for their child’s higher education.

What do you think about this? Let us know in the comments.

Also read: Here’s Everything You Need To Know About The Initiatives Under Budget 2021