NEW Tax relief 2019 you can reap

In year 2019, there will be a new tax relief structure for EPF and life insurance. Where it was previously combined with a total relief of up to RM 6,000 a year, the new structure will split it into RM 4,000 for EPF, and RM 3,000 for life insurance.

This translated to individuals earning more than a gross income of RM 3,030 monthly and don't currently have life insurance coverage, will see their EPF tax relief reduced😱😱

Credit: StepUpMoney

So if you are earning more than RM 3,000 a month and are not currently covered any by life insurance policies, please get one.

RM 3,000 a year means our Government is subsidizing an individual’s life insurance policy with a RM 250 premium per month – that amount can easily provide a six-seven figure coverage when life takes a turn for the worst.

Credit: StepUpMoney

If you would rather not buy life insurance (since it would cost money) but would still want to recover the RM2,000 loss in EPF tax relief, depositing RM8,000 on SSPN would be an alternative!

Take advantage of the increased tax relief for SSPN for year 2019, which not only offer high dividend rates (in 2017 the dividend yield was 4%), but there are also additional benefits such as income tax relief, PTPTN loan eligibility and Syariah-compliant savings that are guaranteed by the Government.

From 2019, the Government is increasing the tax relief amount for SSPN deposits by parents from RM6,000 to RM8,000 a year👉additional RM2,000 that you can get back from the Government to offset your annual income tax from previous years, making it an extremely lucrative savings plan (provided your annual income tax is high enough to claim the full amount!)

One of the reader ask me, if you can still open SSPN if you do not have children? YES, you can still open for your nephew or niece, at the end of day you still have control over the money as you can withdraw anytime.