As the year ends, tax-paying Malaysians are rushing to maximize tax reliefs through popular deductions in education, healthcare, and lifestyle incentives.
Education-related expenses top the list, allowing up to RM7,000 in claims. Contributions to life
insurance and EPF offer a relief of RM7,000. Education and medical insurance deductions are
also significant, with up to RM3,000 in relief. Additionally, the RM2,500 relief for lifestyle and
RM1,000 sports equipment deductions are a popular option, as they tie in with the current
lifestyles of millennials and Gen Zs.
An often overlooked yet powerful form of tax relief comes from contributions to the Private
Retirement Scheme (PRS), which allows Malaysians to claim up to RM3,000 in tax relief
annually. Despite its benefits for long-term financial security, PRS remains underutilized
compared to other relief options. By contributing to PRS, individuals not only save on taxes but
also build a retirement nest egg, making it a smart financial strategy for future stability.
How PRS via Versa Can Help
PRS is a simple and flexible way to enhance your retirement savings while enjoying tax relief.
Here’s how it works:
- Tax Relief: Contributions to the PRS are eligible for up to RM3,000 in annual tax relief,
putting money back in your pocket each year. - Complements EPF: PRS works alongside your EPF savings, giving you an extra boost
to ensure you’re better prepared for retirement. - Flexible Investment Choices: PRS offers a range of investment funds, allowing you to
tailor your savings plan according to your risk appetite and retirement goals.
Versa, Malaysia’s rising homegrown wealth management app, offers PRS funds via its mobile
application, which allows Malaysians to seamlessly create an account and manage their savings
and investments online.
Versa is currently rewarding users with a RM100 bonus when they cash in RM3,000 into any
PRS fund via their app. A total of six PRS funds are available via Versa to cater all risk appetites
with Shariah-compliant options.
Invest in Your Future
“It’s difficult to save for your future but you absolutely must. It’s counter-intuitive for a young
person to save, I know. When Versa first approached me, I was impressed by how they were able to capture a large base of young Malaysians. More so when they secured Securities Commission’s grant to on-board and promote PRS on their platform. As I mentioned in 2018, it is hard enough for youths to set aside funds, I applaud Versa’s initiative to lessen the friction and empower Malaysians to invest at their own pace.” – Khairy Jamaluddin
“Many Malaysians are missing out on the long-term advantages of PRS contributions to help
EPF savings. The government’s initiative to continue PRS’ tax benefits helps in building a stronger financial foundation for the future. PRS offers a smart way to align both short-term savings and long-term goals.” – Teoh Wei-Xiang, CEO of Versa. “
