SSPN is an education saving scheme introduced by PTPTN (Perbadanan Tabung Pendidikan Tinggi Nasional). Its purpose is to encourage parents to plan and save for kid’s education. The most attractive incentive for taking part in SSPN is definitely its tax relief of up to RM8000. In this article, I’m going to share how I use it for tax saving without actually investing in SSPN.
Table of Contents
What is SSPN?
Full name of SSPN is “Skim Simpanan Pendidikan Nasional”. It is a scheme aiming to promote saving for education especially for kids.
SSPN Prime vs SSPN Plus?
There are two types of SSPN accounts, which are SSPN Prime (previously called SSPN-i) and SSPN Plus (previously called SSPN-i Plus). It is very important to note that these two are completely different types of account, and they are not interchangeable. Even the website page to open and log in to these two accounts are different, so one must be clear about the differences before open an account.
The main differences between SSPN Prime and SSPN Plus are as below:
- SSPN Prime is a pure saving account, whereas SSPN Plus is a saving plus insurance plan.
- SSPN Prime offers more flexibility, you can bank in or withdraw any amount of money at any time. In contrast, SSPN Plus is a plan comes with monthly commitment. Withdrawal from SSPN Plus also has more restrictions.
Personally I only want to utilize SSPN for tax relief purpose, therefore I chose SSPN Prime instead of SSPN Plus. Interest offered from SSPN saving is actually ok, around 4% per year. However, if you only want to have SSPN tax saving but don’t actually want to have your money parked in the account, please go for SSPN Prime.
Want to have SSPN tax relief but not investing in it? Here are the steps
1. Open my PTPTN account
Starting 2024, SSPN has been merged into my PTPTN. To open SSPN account, first you need to register for my PTPTN.
2. Open SSPN account
Log in to my PTPTN, select “Service” > “Simpan SSPN”
3. Deposit money into SSPN account
Log in to your my PTPTN, select “Account” > “Saving”, and deposit from there.
4. Withdraw money from SSPN account
There are three methods of withdrawal:
(1) Mail or physically submit withdrawal form to PTPTN.
(2) Through Bank Islam account. If you have opened Bank Islam account and linked SSPN to it, you can withdraw from SSPN into Bank Islam account through its online banking portal. After that, you are free to transfer money from Bank Islam to other bank of your choice.
Here is the withdrawal / transfer page at Bank Islam online banking portal.
(3) Directly through myPTPTN (website or app). Log in to myPTPTN online portal, click your account and select “Transfer”. Compared with method (2) through Bank Islam account, shortcoming is the daily withdrawal is only RM1,000 per account. After application, it takes 2-3 working days to deposit into your bank account. And until the transfer process is completed, you will not be able to make second withdrawal request.
IMPORTANT POINT ! The amount of SSPN tax relief entitled, equals to the deposit amount minus withdrawal amount of the the year. So,
- The money deposited can only be withdrew in the following year. Otherwise it will not be entitled for tax relief. So I always deposit in December and withdraw in January of the following year.
- If you have withdrew in January, to continue entitle for tax relief, amount of withdrawal must be deposited back into SSPN account latest by December of the same year. On top of that, the additional deposit can be used for tax relief.
Let’s use some examples to explain.
Example 1: RM8000 deposit in December 2020, RM8000 withdrawal in January 2020. Then during tax filing in 2021, SSPN tax relief = RM8000 – RM0 = RM8000.
Example 2: RM8000 withdrawal in January 2020, RM16000 deposit it December 2021, RM16000 withdrawal in January 2021. During tax filing in 2021, SSPN tax relief = RM16000 – RM8000 = RM8000.
So the trick is, you have to deposit more money every year into SSPN account to continue SSPN tax relief entitlement. If accumulation has gone too high, you can also choose to “waste” a year of SSPN tax relief to reset the accumulation to zero.
6. How much is the tax saving?
SSPN tax relief is RM8000 per year, until assessment year 2024 (i.e. 2025 tax filing). Note that
- In case of separate filing, husband and wife can claim RM8000 of tax relief each, meaning total RM16,000 of tax relief for a family.
- Even with more than one kids, tax relief of husband and wife is still capped at RM8000 each. It does not increase with the number of kids.
Note that you opt for SSPN Plus instead of SSPN Prime, for the money paid to SSPN, a portion belongs to tax relief under SSPN while another portion belongs to tax relief under insurance.
Based on my experience, when doing e-filling for income tax, the system will automatically detect and fill how much SSPN tax relief you are entitled to. However, if you think the amount is not correct, it can be manually adjusted.
When it comes to exact tax saving from SSPN, it really depends on your income tax bracket. Here I’ve created a table to show saving considering full utilization of RM8000 SSPN tax relief, for one person (husband or wife).
| Income tax bracket | Saving from SSPN tax relief |
| 1% | RM80 |
| 3% | RM240 |
| 8% | RM640 |
| 13% | RM1,040 |
| 21% | RM1,680 |
| 24% | RM1,920 |
| 24.5% | RM1,960 |
| 25% | RM2,000 |
| 26% | RM2,080 |
| 28% | RM2,240 |
| 30% | RM2,400 |
End
Even if you are not interested in the 4% interest rate return from SSPN, you can still use it for tax saving purpose by following steps above, so why not?
I have a child with my ex husband but I have no child with current husband. I have opened an account with my child to enjoy the tax relief. Can my current husband enjoy tax relief if he open this account for my child?
In order to enjoy tax relief and to have a net deposit of RM 8000 by 31st December, is there a period where the money needs to sit there?
Say in 2023 RM 30,000 is accumulated, full withdrawal is done in May 2024. In order to enjoy tax relief for 2023, I need to deposit RM 30,000 + RM 8,000
1. By when?
2. For how long?
Extreme scenario, I deposit RM 38,000 by 11:30pm on 31st December 2024, then withdraw all RM 38,000 on 1st January 2025, say 10am, will the tax relief for 2024 still be valid?
In your scenario stated, tax relief is valid. However do take note that for lump sum withdrawal you would need to visit the office to submit your request
I would like to know, why after withdrawing 8k in let’s say Jan 2023, i need to add in 8k+8k=16k before Dec 2023 to be entitled for the tax relief of 2023? Why can’t i just put in 8k?
The tax benefit is meant to be for new deposit. When you withdraw earlier in a year and deposit back later, it doesn’t count as new deposit
The idea is for you to keep the pot growing for your kid(s), by at least net increase of RM 8000 a year. Quite a smart way to force education savings. Though there are loopholes.
Thanks for the informative info…Its clever use of funds & tax deductions.
This would be useful for those who have better use of funds (that can create a better return) n could muster large amounts to contribute at successive year ends, and usage of funds at beginning of year
hi CK
I have two kids. So far I only opened account for my 1st kid which I wish to withdraw the balances in the account (for ie RM20K). Then, I’m planning to open account for my 2nd kid and deposit RM8K.
Am I entitled for the tax relief on my RM8K deposit for my 2nd kid? Or it will combine with my 1st kid account to calculate whether am I entitled or not..
It will be taken into account in combination, so in your example you will not be entitled.
It’s the new year! So, how do I withdraw online without having a bank Islam account? Ptptn site changed to myptptn out of no where. I did my eKYC. But now in the app or site, I have no idea where is the withdrawal or pengeluaran button…
I’m also facing the same situation…any advice on this appreciated.
For now, can only withdraw through bank Islam or counter. It seems that the withdrawal function would be added to myptptn, but it’s not clear when it would be available
You can now withdraw from myPTPTN, but only RM1000 per day
I have deposit RM8000 on July 2023 and SSPN have give us interest RM1000++ for previous balance in account. Can i withdraw the interest RM1000. Will it affect income tax claim?
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Hi CK, In March 2023 I withdrawals all my Sspn Rm61k and left Rm20 in account . If I want to entitled the Rm8000 tax relief for 2023 tax , it mean I need to deposit Rm61k + Rm8000 before end of 2023 right? Or just a Rm8000 only?
yes, correct RM69k in order to get 8K tax relief
Hi CK, would like to clarify that I can claim this SSPN Tax relief before the kid turn 29 years old but already working and has their own income?
Hi CK,
Does the trick of resetting by “wasting” a year of SSPN tax relief to reset the accumulation to zero really works?
Say I have accumulated a total of RM16,000 on year January 2022, then i placed another RM8,000 December 2022, totaling RM24,000.
So this year 2023, I happened to need the money and withdraw all RM24,000 and placed 0 throughout the year 2023.
* no claim during tax filing in 2024.
On January 2024, i placed RM8,000; Am i eligible to claim the tax relief during tax filing in year 2025? (should tax relief still available)
May I know the Tax relief still got in 2023?
Yes
Can know how to withdraw via ptptn? Registration is for my kid o parent? Thx
You can register myPTPTN under parent
Hi Admin,
Good day to you, i deposited 8k in Sep 2022, if i withdraw in mar 2023 , am i still entitle for tax relief for income tax 2022 ? thank you.
Yes
Hi Admin,
Good day.
I am doing the same as above. In the year end statement I am able to find the same amount. But in the tax relief statement “PENYATA RINGKASAN AKAUN SSPN UNTUK PELEPASAN CUKAI” I find there are no update and values still zeros. May I ask if this is fine to insert for tax relief. Just wondering if both statement should carry the same amount or it’s not updated yet. Appreciate for your advise. Thanks in advanced.
Hi, Admin, for the SSPN withdrawal… Depositor need to open the bank islam account right? but im not muslim.. can open?
non muslim can open bank islam account, just like any other bank.
I hv 3 kids.
1st kid = SSPN Prime has RM 60k ( i started to deposit since Year 2009)
2nd kid = SSPN Prime has RM 20k ( i started to deposit since Year 2014)
3rd kid = SSPN Prime has RM1k ( i started to deposit since Year 2022)
Total RM8k deposited in Year 2022 (RM 5k for 1st kid, RM 2k for 2nd kid and RM 1k for 3 kid)
Let’s say i withdraw RM 60k from 1st kid and 20k from 2nd kid : Total RM 80,000 in Jan Year 2023 ;
which means withdrawal is more than Deposited in Year 2022. (Yes, i know that i cannot claim for tax relief for Year 2022)
Will the RM 80k added to my annual income. Let’s say my annual income is RM30k… + 80k (withdrawal) = RM 130k
Question 1 : Is RM130k taxable ?
Question 2 : Can i withdraw RM 60k and RM20k in the same year (at the same time) ?
1. Your withdrawal from SSPN will not be counted as income, it’s not taxable
2. Yes, you can withdraw whatever amount as you wish
In the scenario you described, i.e. 8k new fund deposited in 2022 and 80k withdrawal in Jan 2023, you are still entitled for tax relief for assessment year of 2022 (i.e. tax filing done in 2023)
Hi,
1) so if i have one child registered, will both me and my husband enjoy the tax relief benefit? *the account is under my name.
2) every year will need to deposit new fund of 8k to enjoy the maximum benefits or just need to maintain the account to have 8K inside?
3) i now recently have another child, any added benefits to open account for him in terms of tax relief when i have already maxed out with the previous child’s account? or do you suggest the new child under husband’s name?
Thank you so much in advance
1. No, only you are entitled for the tax relief
2. You have to deposit 8K of new fund every year
3. No added benefit for opening a new account with your 2nd kid as beneficiary in the scenario you described. For your husband to also have the tax relief, he can open a new account under his name, with either your 1st kid or 2nd kid as beneficiary. In short, from the perspective of tax relief, it only matters whose name the SSPN account is registered under. You need to have kid’s name as beneficiary for this entitlement, but which kid does not matter.
hi,
i am married, no kids and opened SSPN prime account to further my education. Can i use this to claim for income tax relief? i have deposited 8k into sspn prime account
No, you can’t.
Hello Admin CK, for withdrawals,
Say for example, i put in 8000 into prime in december 2022, and in january 2023 i withdraw, how much fee/interest does PTPTN charge? Is there a charge? Do we have to submit documents for withdrawal or is it free for us to withdraw?
Thanks in advance!!
No charge for withdrawal.
In case of SSPN prime, log in to the portal, you can see a link called “Pengeluaran Simpanan”. From there, enter your bank account number to request for withdrawal. No need to submit any document, no fee.
Hi, can still claim for SSPN tax relief if children already working but age only 27 ?
Hi, if i deposit 10k in SSPN during January 2022, then i withdraw 10k in Janually 2023, do i need to declare the 10k to pay more income tax for year 2023? Let say my total income for 2023 is 50k, will the 10k withdrawal from SSPN will add in to the income tax to become 60k?
No, SSPN withdraw will not increase your income tax
Hi, both husband and wife file income tax separately and only have one kid, does it mean each husband and wife income tax can relief RM8000 ? Thank you.
Yes, each of you can claim RM8000 tax relief respectively
Hi, is it easy or possible to switch from SSPN Plus to SSPN Prime ?
Hi CK, is it possible to switch from SSPN Plus to SSPN Prime ?
but for single they allow you to open and save in SSPN-i , but cant claim tax . what nonsense .
The purpose of SSPN fund is for your children’s education later. If you have no kids, why would this tax relief be provided to you. Try to understand the purpose of the fund instead of calling it ridiculous!
well replied.
Hi admin, where i should create sspn account ? go to BANK ISLAM ?
Can just open account online
SSPN Prime https://www.ptptn.gov.my/esmas-open-acc-web/#/openAccount
SSPN Plus https://www.ptptn.gov.my/sspniplusonline/?id=000009860
Hi CK,
I’m holding 2 accounts for my 2 kids and i did closed an account in April 2022 & fully withdrawn the amount & my question are if I’m deposit 8k for tor the remaining account, did i still can claim for the tax relief?
Cannot if your withdrawal is more than deposit, regardless of which kid is the beneficiary
Hi Admin. I am 60 this year (June 2022). My child is 30 this year. Can i still save and eligible for my tax relief for year 2022? Thank you
Hi Leong, SSPN tax relief can be claimed until maximum child age of 29 only.
Hi Admin, your withdrawal scenario are showing perfect scenario. Let’s say i have deposited RM200 monthly from the day i opened the SPPN Prime acct. And now example I have balance RM16K in the account which will continue to increase since my contribution is monthly. If let say, my kid needs the money for her first semester course, and if i withdraw RM2K now in Oct22. How will my tax relief for 2022 appear to be? will it still show the current year contribution that i am actually withdrawing the previous years deposit instead of current year contribution ?
Hi Sandra, the tax relief is calculated based on deposit and withdraw made within the year. In your case, deposit = 2400, withdrawal = 2000, tax relief will be 400 from your taxable income
Hi admin, can I link maybank account instead of bsn?
No
Hi CK, I have a SSPN ac for my child. She completed her degree last year and is working now. For 2022 income, can I still contribute to her account and claim tax relief? Tq.
until child is age 29 you can. your child may decide to go take a higher degree later on so the scheme is still ongoing. cut off is at 29 years old. how they come up with that magic number i have no idea.
HI admin,
is the account registration required under children names or own name to enjoy the tax rebate? Thank in advance for your advice.
As long as you are registered as depositor of the account, you can claim the tax rebate. Beneficiary can be any of your kids
Hi, is the dividend given entitled to claim for tax relief
No
Thank you very much CK for your reply. Have a nice day.
Hi admin, if i first register account and deposit RM8000 in my kids Acc in Dec2022, then i don’t withdraw, can i claim tax for 2022? Thank for ur reply.
Yes
Good day admin,
I am not married yet, single and do not have any children. can i put the child for cousin’s children? and
Can i use this method for personal tax relief up to RM8000?
No you can’t.
Hi, Great post here CK, thank you for that. Would like to ask, what is the waiting period for the withdrawal of funds from SSPN Prime through bank islam? eg. online banking
I don’t recall exactly, but definitely within a week
Hi CK,
I have two accounts under my name for my kids.
I wish to withdraw from one of accounts without depositing back, yet another account deposited 8K, am i still entitle yearly tax relief? Thank you.
Hi CK,
If I have sspn prime and sspn plus account open. How would tax exemption be calculated?
Hi, until YA2022?
Mind to share the source of this extension?
I can’t really find in yet. Lhdn website still showing Ya2021 only..
Tqtq
Two years extension was announced in budget 2021, you can try to search for the news, this is one of it
https://www.nst.com.my/news/nation/2020/12/645740/sspn-contributors-welcome-tax-relief-extension
If 2021 I bank in with 2 transactions with 2 times with . Example rm500 and rm7500. Still entitled for the relief?
Yes
Hi admin, if want to do withdrawal on this month Jan 2022, is there any particular date before or after to withdraw but still entitle tax relief ? Thank you.
very informative..thanks author
Hi admin, this is such an informative article. Thank you
Hi admin,
Example 2: RM8000 withdrawal in January 2020, RM16000 deposit it December 2021, RM16000 withdrawal in January 2021. deposit in December 2020, RM8000 withdrawal in January 2020. During tax filing in 2021, SSPN tax relief = RM16000 – RM8000 = RM8000.
For this above example, let said the account inside having RM8000 and what if the third year I deposit RM8000 in December 2021, and RM8000 withdrawal in January 2022.
So during tax filing in 2022, the SSPN tax relief would it (RM8000 in acc + RM8000 deposit) – RM8000 withdrawal in Jan 2022 = RM 8000?
Hi Admin. I am 64 this year (April 2021). My child is 27 this year. Can i still save and eligible for my tax relief for year 2021? Thank you
Yes, still eligible until your kid turns 29 years old
Hi CK, would like to clarify that I can claim this SSPN Tax relief before the kid turn 29 years old but already working and has their own income?
The contribution to SSPN is tax deductible up to RM8K for a child until age of 29 or depositor turning 64 – whichever later.
However, tax consultants claim that based on TAX AUDIT experience, once a child starts working, such contribution is no longer deductible.
While I see some logic to this, I find that any further savings could help child to go for further higher education
…continuation
I had also meant to ask if such claim by tax consultants are true, ie SSPN tax deduction is no longer allowed by LHDN once child starts working -(though there is no clear guidelines)
Hi admin,
I am not married yet, single and do not have any chidlren.
Can i use this method for personal tax relief up to RM8000?
Hi KC, unfortunately without kids you are not eligible
Hi CK, instead of depositing RM8,000 for max tax relief, I accidentally deposited RM10,000 in early December 2021. Can I make withdrawal of the extra RM2,000 I had deposited in Dec 2021 before end of Dec 2021 so that I would still enjoy the tax relief for YA2022 of RM8,000?
Secondly, noted that SPN tax relief is RM8000 per year, is until year 2022. Does that mean for year of assessment (YA) 2023 for income earned for 2022, we still get the RM8,000 tax relief?
1. Provided you didn’t make other withdrawals in 2021, for the case you described, you are entitled for RM8000 tax relief when doing tax filing in 2022
2. It will be until assessment year 2022 (i.e. tax filing in 2023)