SSPN-i Plus is a higher education savings plan or scheme specifically introduced by Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) or National Higher Education Fund Corporation to promote smart saving and investment for the future. SSPN-i Plus combines education savings and takaful protection in inexpensive and comprehensive plan, which is fine-tuned from the existing SSPN-i plan. In other words, what you save today will come in handy to support the higher education of your child or yourself in the future.

The concept of SSPN-i Plus

SSPN-i Plus adopts the concept of disciplined savings on a monthly basis based on the package you choose. It is a syariah compliant savings plan with a total of six packages to be chosen from, depending on your needs. In addition to the existing five packages, PTPTN had also introduced the Intan package on 6 May 2016 for added affordability with just RM1 per day or RM30 per month.

Savings Package

SSPN-i Plus has six packages to suit your different needs. They are Intan, Delima, Topas, Zamrud, Nilam and Berlian.

Benefit of income tax relief

SSPN-i Plus is guaranteed by the government and you are privileged to enjoy multiple benefits, including income tax relief up to RM12,000 per year, based on your nett deposit.

Who is eligible for tax relief benefit?

The income tax relief benefit applies to depositors of SSPN-i Plus who can be the parents/ adoptive parents/ legal guardians/ other valid depositors by law. The tax reduction up to RM12,000 per year is derived from the nett deposit (savings minus withdrawals) of the current assessment year, meaning up to RM6,000 for nett deposit (savings) and another RM6,000 for takaful contribution under the life insurance and KWSP (EPF) category. For parents (husband and wife) who open their respective SSPN-i Plus accounts and file for separate tax assessments, they are entitled to the same tax relief of up to RM12,000 each. The last date to enjoy such income tax relief is 31 December 2016 for this year. Please refer to Section D (Relief) on the LHDN form when you file for this income tax relief.

Example of nett deposit calculation:

Let say you have a balance of RM4,500 in your SSPN-i Plus deposit last year and you made a RM3,000 deposit and a RM1,000 withdrawal this year, your nett deposit of the current assessment year is RM2,000. The nett deposit (savings) will be used to derive the income tax relief subsequently.

• Last year’s SSPN-i Plus balance = RM4,500
• This year’s deposits (savings) = RM3,000
• This year’s withdrawals = RM1,000
• Nett deposits of the current assessment year = RM3,000 (deposits or savings) – RM1,000 (withdrawals) = RM2,000 (nett deposits or savings)

Dividend is also part of the tax exemption!

Another exciting advantage of SSPN-i Plus, offered competitive dividends, which are eligible for tax exemption too.

Who can open an SSPN-i Plus account?

The depositors must be Malaysians belonging to the 18 – 64 age group. The beneficiaries must also be Malaysians aged between 1 day and 29 years old, who can be yourself/ your child/ child under your care, which is valid by law. For individuals who are unmarried, you are also eligible for participating in the SSPN-i Plus for yourselves on condition you belong to the 18 – 64 age group, but you are not eligible for tax relief in this situation. Each depositor is only allowed to open one SSPN-i Plus account by nominating one beneficiary only. However, different depositors are allowed to open their respective SSPN-i Plus accounts for the same beneficiary.