2017 Tax Planning - SSPN (PTPTN) Tax Relief

Have you open an account (PTPTN) for your child 'education fund'?

SSPN stands for Skim Simpanan Pendidikan National. 

5 commons way to fund your child(ren) education.


Beside Tax Saving, for which some people don't care because of low tax bracket, there is ONE more reason you might want to consider to 'save' with SSPN - effective 2012, you can't borrow from PTPTN unless you have saving in PTPTN (under SSPN)

However, the new scheme has a surprise element - the 'takaful' element THAT you are 'forced' to buy insurance (in Bahasa, Sumbangan Takaful) which is relatively 'expensive' but it is still a good plan for those can't afford a conventional medical plan, or life insurance, yet want to provide a saving for their child(ren) education.

IF you don't wish to have the "takaful" element., stick to the SSPN-i (without the Plus)

SSPN-i Plus Plans

PAKEJ	INTAN	DELIMA	TOPAS	ZAMRUD	NILAM	BERLIAN*
Simpanan SSPN-i	RM20	RM40	RM90	RM180	RM270	RM200
Sumbangan Takaful	RM10	RM10	RM10	RM20	RM30	RM300
Jumlah	RM30	RM50	RM100	RM200	RM300	RM500
MANFAAT TAKAFUL
Kematian/Keilatan Kekal & Menyeluruh (Kemalangan)	RM40,000	RM40,000	RM40,000	RM80,000	RM120,000	RM1,000,000
Kematian/Keilatan Kekal & Menyeluruh (Biasa)	RM20,000	RM20,000	RM20,000	RM40,000	RM60,000	RM500,000
Keilatan Kekal & Sebahagian (Biasa dan Kemalangan)	Tiada	Tiada	Tiada	Tiada	Tiada	RM100,000
36 Penyakit Kritikal (Bayaran manfaat dipercepatkan)	RM10,000	RM10,000	RM10,000	RM20,000	RM30,000	RM100,000
Elaun Kemasukan Hospital/hari**	RM20	RM20	RM20	RM40	RM60	RM200
Khairat Kematian Pendeposit, Pasangan (yang pertama & sah sahaja) dan  anak	RM2,500 (Pendeposit dan pasangan) RM2,500 RM1,000 (setiap anak – maksimum 3 orang anak sahaja)					RM18,000 (pendeposit) RM9,000 (pasangan) RM2,000  (setiap anak – maksimum 3 orang anak)

Dividend

Based on my personal experience, the effective rate of return for past 10 years is merely ~3.75% p.a.

Why save with PTPTN?

• Tax relief, which may be 28% for those having chargeable income of RM1,000,000 and above OR 21% for hose having chargeable income of RM70,000 and above, which is still substantial for first year of contribution.

Disadvantage of PTPTN saving (i.e. SSPN)??

• Low return (2007 to 2016, effectively only 3.75% p.a.)
• SSPN-i required contribution for insurance element, which you may not need (or aware...). The benefits is not provided to you FREE, you pay for it. 

Tried to open an account for 2nd child but server down. You may try it here to open SSPN-i account online, save for Tax Relief before 31.12.2017.

To check SSPN account balance, click here.

Source:-
PTPTN Website