actually the computation of the return should factor in your personal tax break.

assume your tax rate is 26%, you place 3k into the account - instant tax back of 780.

in other words: your investment is only 2220 BUT you get interest based upon 3000. i.e. the interest you get is much higher.

if you got 3.25% in 2010 it was for 3000 not the 2220 you actualy place. this means you get RM 97,50 for the entire year for a placement of 2220 which means the effective interest rate was actually: 4,39 percent. in other words the interest you get might not be much but it surely is better than a FD placement and it *will* better if you actually pay tax.

quick question: for the 6k tax deductable do i also factor in interest paid for 2014, i.e. deposit only 6,000 RM less interest (i.e. 600 RM) = 5,400 RM or can I only deduct 5,400 RM then from my taxes?

i dont understand this? essentially what i want to know is is the tax deductable deposit inclusive of divident received on existing deposit or not?

divident not considered fresh funds if i dont take it out? tried to clarify but cant reach anyone at Hasil or PTPTN sigh...

This post has been edited by PJusa: Oct 10 2014, 05:45 PM

ok thanks. then i can safely deposit 6k without wasting money

i send an email to HASIL to double check. obviously they didnt get the question. This is the reply I got:

Simpanan ke dalam tabung Skim Simpanan Pendidikan Nasional (SSPN) untuk membiayai pelajaran anak-anak diberi potongan kepada individu terhad kepada RM6,000 setahun (berkuat kuasa mulai tahun taksiran 2012 hingga 2017). Potongan yang dituntut adalah terhad kepada amaun tabungan bersih yang dilakukan di dalam sesuatu tahun sahaja.

Contoh:

Dalam tahun 2013 :

Baki Bawa Hadapan: RM 4,500.

Simpanan: RM 2,000.

Pengeluaran: RM 1,500.

Oleh itu, potongan yang layak dituntut adalah RM 500 (RM 2,000 – RM 1,500) sahaja.

Baki Bawa Hadapan sebanyak RM 4,500 tidak diambil kira. Perenggan 46(1)(k), Akta Cukai Pendapatan 1967.
Jika tuan mempunyai pertanyaan lanjut, sila hantarkan pertanyaan tuan melalui Borang Maklumbalas Online kami yang boleh dicapai melalui sambungan: http://maklumbalas.hasil.gov.my

Sekian, terima kasih.

But I guess the dividend is indeed net savings if I dont take it out from the account. So yeah, i can tweak my annual contribution

you ned to use 6k - interest (=dividend) credited in 2014. dividend credited 2014 is for 2013. so you know how much you have.

yes, that's how i understand it. if you look at the tax receipt for 2013 you can see sthg like this:

1. BAKI AWAL PADA 1HB JANUARI 2013 : 15.326,16
2. SIMPANAN SETAKAT DISEMBER 2013 : 6.396,36 (divident + 6k deposit - i overdeposited in 2013)

PELARASAN TRANSAKSI (RM)
1. TRANSAKSI TAHUN 2012 YANG TELAH DIKEMASKINI PADA TAHUN 2013 : 0,00
2. BAKI TRANSAKSI BELUM DIKEMASKINI TAHUN 2013 : 0,00

BAKI KESELURUHAN PADA 1HB JANUARI 2013 (A) : 15.326,16
BAKI KESELURUHAN PADA 31HB DISEMBER 2013 (B) : 21.722,52
BAKI TRANSAKSI TAHUN 2012 YANG TELAH DIKEMASKINI PADA TAHUN 2013 © : 0,00
BAKI TRANSAKSI BELUM DIKEMASKINI TAHUN 2013 (D) : 0,00
TAMBAHAN / (KURANGAN) SIMPANAN BERSIH BAGI TAHUN 2013 (B-A-C+D) : 6.396,36
AMAUN LAYAK PELEPASAN CUKAI BAGI TAHUN TAKSIRAN 2013 : 6.000,00

if you look at your current statement you can see that the interest for 2013 is shown in 2014 as follows:

1. BAKI AWAL PADA 1HB JANUARI 2014 : 21.722,52
2. SIMPANAN/PENGELUARAN BERSIH SEHINGGA OKTOBER 2014 : 668,21
3. SIMPANAN MELALUI FPX : 0,00
4. BAKI SIMPANAN PADA OKTOBER 2014 : 22.390,73


BAKI KESELURUHAN SIMPANAN SEHINGGA OKTOBER 2014 : 22.390,73

so i can top up on Dec31st 6k - 668.21 to max out the tax rebate.

where can i pay by CC? i like the pay & withdraw idea a lot too. get tons of free CC pts like that even could pay 40k by card, then withdraw again if you want more points

thought as much. i am not really that near. if i can swipe 40k or more and then withdraw again i would be tempted to go to KL central and try it. did anyone try to make a substantial CC payment and then take it out again? its like free credit as well. if you roll it properly you can even cash in on interest capitalisation. it would be insane if they allow this to happen.

4% is nice. The way I see the return is different and its still a very simplistic aproach.

I invest 6k p.a. and then get my tax refund on it. Given my marginal tax lvl is 24% I get a refund of RM 1440 i.e. I really only invested RM 4560. I do get interest on RM 6000 though at 4% = RM 240 and on top I get the free money.

240/4560 = 5.26% interest on the money i really invested. That is damn good for a save investment is it not? And when I eventually cash out I get all the extra free money on top as well. I am not complaining.

Of course you can still say I could take the entire money out and make it work outside for higher returns to improve the ROI even further. Granted but anything that has a real return of 5% on the money i invested and is guaranteed no loss of money sounds decent enough for me.

if dont believe that part then you better no hold any RM at all or better even no currency. but if that is really that smart i cant say. i dont think so though.

Damn already placed 8k in PTPTN this year. But from TnC 1% is maxed at RM 80 anyways so not much to cry about.

any special way to withdraw for education purpose so it wont affect net contribution calculation? can do through the app or need to visit them?

Then just hold until 30 September 2025 for the extra 1% afterwards can take out again right? Latest to take out my mid-december so it wont count towards contribution in 2025 and wont affect the 8k that you need to top-up? Planing to dump in ~200k.

Thanks for the pointer. Will take note!