If you deposit money into SSPN in 2024, you can still enjoy a personal income tax deduction of up to RM8,000.
In March last year, Prime Minister and Finance Datuk Seri Anwar announced that the SSPN tax exemption project would be extended to 2024, which also means that people who deposit money into SSPN in 2024 can still enjoy tax exemptions.
The full name of SSPN is Skim Simpanan Pendidikan Nasional, which is the Education Savings Fund. This is an education savings fund launched by the government to encourage people to save.
If taxpayers deposit SSPN for their children, they can enjoy a tax deduction of up to RM8,000. The so-called RM8,000 refers to the net amount deposited in the year under the SSPN plan (deposits minus withdrawals).
Here is an example to make it easier for you to understand. Mr. A deposited RM1000, RM2000 and RM3000 into his child’s SSPN account in February, June and September respectively. But if he withdraws RM2,000 from his account in July, he can only get a tax deduction of RM4,000.
In addition, SSPN has another way of saving, which is that people can open an account for themselves. Even if they are adults working in society, they still meet the conditions for opening an account in SSPN. However, savings in this case will not be eligible for personal income tax deductions.
