3 places to save your money and enjoy tax relief in Malaysia 2022

Lee Siew Ching, tax relief

They have a combined personal income tax relief amount of up to RM15,000. How much tax savings amount could you enjoy from this? For example, if your tax bracket is 8%, your RM15,000 contributions will give you tax savings of RM1,200.

1) EPF

Employees Provident Fund (EPF) receives and manages retirement savings for all its members, encompassing mandatory contributions by employees of the private and non-pensionable public sectors as well as voluntary contributions by those in the informal sector.

The personal income tax relief amount for EPF contribution is up to RM4,000.

If your salary is more than RM3,703.70, your 9% mandatory contribution would already amount to RM4,000.

If your salary is less than above, you can opt to self contribute into EPF.

If you are not salaried employee, voluntary contribution is strongly encouraged.

Self contribution can be made via internet banking, bank agent counters and EPF counters. The maximum limit for all Voluntary Contribution (Self Contribution, i-Saraan, i-Suri, Top-up Savings Contribution - effective January 2013) is RM60,000 yearly.

2) PRS

Private Retirement Schemes (PRS) is a voluntary long-term savings and investment scheme designed to help you save more for your retirement.

The personal income tax relief amount for PRS contribution is up to RM3,000.

RM3,000 per year is equivalent to RM250 per month. One tips is to put your savings on autopilot. Automate your regular monthly contributions by setting up a standing instruction.


Skim Simpanan Pendidikan Nasional (SSPN) is an education savings plan for your children.

The personal income tax relief amount for SSPN net contribution is up to RM8,000. Net contribution is the total deposit in 2022 MINUS total withdrawal in 2022.

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