Tax relief only until 2021. If they don't extend it means no need to contribute already as you are not getting anything.

PRS company not important. What's important is the fund manager. Good PRS company with lousy fund manager = bad choice.

Thanks for your answer, this helps me a lot

For those who wish to save to buy CIMB-Principal PRS Plus Asia Pacific Ex Japan Equity - Class A at 0% sales charge. U can buy it from eunittrust, save the 0.1 % annual management fees as compared class C fund..

What is the difference between class A and C? Seeing that the difference is only rm3 assuming I put rm3k in PRS.

How about FSM?

FSM is selling only Class C fund.

went to have a look at eunittrust, but their PRS is offline trade only?

Well annual management fees will be charged yearly based on your total investment so if you have 30k in the PRS the difference will be RM30 already. However I don't see much difference between Class A and C in terms of returns so those buying Class A will enjoy 0.1% higher return compared to Class C.

Nothing significant.. Between both of them.. It is significant for person who count every penny.. The main purpose is for tax relief and 1k youth incentive if u r below 30.

Assuming:-

Total Income - RM50,000
Less:
Personal Relief - RM9,000
EPF@11% - RM5,500

Total Chargeable Income - RM35,500

First RM35,000 = RM900
Balance RM500 @ 10% = RM50
Total Tax Payable = RM950

If you have further tax relief deduction, your tax rate will be at 5% and also a tax rebate of RM400 for chargeable income less than RM35,000.

If you can't save any tax from it but if you are not more than 30 years old, contributing RM1,000 PRS you will get the PRS Youth Incentive of RM1,000 from government.

This post has been edited by rapple: Nov 29 2017, 09:22 AM

Only worth it if you get the 1k incentive .

worth if ur annual income hit the top tax bracket, 24% one, which is after 100k income. 3k tax relief is equal to a rebate of rm700-800. So when u calculate, 700/3000 x 100% is like instant 23% return. summore u get rm1000 after u put 1000, instant 100% return and it is another force saving also, good for your future at least u have another pool of money.

This post has been edited by ben3003: Nov 29 2017, 11:25 AM

not much, u say ur annual income 50k, then tax relief personal 9k, epf and life insurance assume u fully utilize 6k, then 2.5k assume u subscribe unifi also full. 50k-9k-6k-2.5k is 32.5k. so the tax u are paying is like at most 1k? then if 32.5-3k tax relief, is 29k, so u only can save less than 100 maybe lol.

So not worth it. Please do ur own homework if u wan to calculate exact u can save, no spoon feeding here. else get the fuking PRS agent who persuade u to buy their PRS to do it for u, they are paid for that, i aint.

https://ringgitplus.com/en/blog/Personal-Fi...Guide-2017.html

Just contribute la. Little amount also some money save. At the end of day, you will still get back your money.

If you choose to pay tax, you will never get back the money you paid.

If follow the above:

Tax Chargeable - RM32,500

First RM20,000 - RM150.00
Balance RM12,500 @ 5% - RM625
Total Tax Payable - RM775
Less: Tax Rebate - RM400
Balance Tax Payable - RM335

If contribute 3k PRS @ 5% = RM150 tax save

Not worth it.. it lock your money until your retirement

Which one sound nicer?

Put it in, reduce amount of tax, withdraw in full at 55 years old or
pay tax and never see your money again at 55 years old?

Your call.

Wth are you talking about?? You do not buy PRS, you pay your tax, you see your 3k immediately in front of you. What do you mean "never see your money again at 55 years old"??????

Specifically to TS case, he gets a paltry 5% rebate. Amortized over a period of 30 years (estimate), that is only 0.16% p.a. With the money locked for 30 years and with limited funds to choose from, 0.16% is not worth the effort.

IMO, PRS tax relief is only worth it if your tax bracket is >20% and you are near to retirement age

It's actually an instant return of 5% for that year and the fund will grow right? How can you amortized the return over 30 years when you gain the return immediately by paying less tax?

If TS, it's still age 30 and below just put in RM1k to get the youth incentive. The tax you saved for the full RM3k it's not much given your tax rate it's still low.

Who said you do not buy? You can call it buy/parking but you need to fork out money for it first and you will be given units hence it's still buying.

You pay income tax, what do you get back after 30 years? Zip, nil nothing aka your money is gone for good.

Now, considering if you were continue putting in money into PRS Rm3k/year into PRS. After 30 years, you should get back RM90k + whatever extra the fund makes.

That's why you must choose a good fund. Even a lousy fund which give you FD rates will return you > RM90k after 30 years.