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SSPN Tax Relief 2025: Complete Guide

Posted LnCoadmin

Starting from the 2025 Assessment Year (YA 2025), Malaysia’s National Education Savings Scheme (SSPN) introduces significant changes to tax relief rules. This guide combines policy comparison + practical scenarios (Scenario 1–3) to help parents fully understand the new rules and plan their tax filings effectively.

1. SSPN Tax Relief: Before vs. Now

Policy Comparison

Old Policy (Up to YA 2024)

  • Each parent could individually claim up to RM8,000 in SSPN tax relief.
  • Total family deduction could reach RM16,000.
  • Withdrawals for education purposes affected the calculation of the year’s “net contribution.”

New Policy (YA 2025–2027)

  • Family-based tax relief cap: RM8,000 per household.
  • Only one parent (father or mother) can claim — spouses cannot claim separately.
  • Withdrawals for children’s higher education no longer affect the tax relief calculation.
  • Tax relief incentive is extended until 2027.

 Key point: Deduction is now calculated per family, not per individual.

2. SSPN Tax Relief Scenarios

All examples below are based on the new rules from YA 2025 onward.

Scenario 1: One Child

Assumption:

  • Father contributes RM10,000
  • Mother contributes RM5,000
  • Contributions are for the same child

Claim Result:

  • Regardless of the contributions, only one parent can claim.
  • Father can claim RM8,000 (cap)
  • Or mother can claim RM5,000 (limited to actual contribution)

Tip: Choose the parent with a higher tax rate to maximize tax savings.

Scenario 2: Two Children

Assumption:

  • Father contributes: RM10,000 (Child A) + RM5,000 (Child B)
  • Mother contributes: RM5,000 (Child A) + RM5,000 (Child B)

Claim Result:

  • Even with two children, the tax relief cap remains RM8,000.
  • Parents cannot claim separately for different children.
  • Only one parent can claim up to RM8,000.

 Note: More children do not increase the deduction.

Scenario 3: Divorced Parents

Assumption (Self-Assessment):

  • Father contributes RM8,000
  • Mother contributes RM5,000
  • Parents are divorced and file separately

Claim Result:

  • Both parents are eligible to claim.
  • Father can claim RM8,000, mother can claim RM5,000, limited to actual contributions.

Note: For divorced parents, the “one parent per family” restriction does not apply.

4. Summary

  • Who claims is often more important than how much is deposited
  • SSPN tax relief cap: RM8,000 per family / per parent
  • Couples cannot split or claim duplicate deduction
  • Tax relief incentive extended until 2027