Kim Chnai Lau asked 4 months ago

Dear CF,
I read through your email on subject about maximize tax relief in YR2017.

#3 – Private Retirement Scheme (PRS) for self (max 3,000 tax relief)

This is one of the few tax reliefs that you don’t need to spend any RM to be eligible. 

It is like you invest into PRS type of unit trust funds, but you get tax relief out of it. 

If you are under 30, government even give you back 1,000 just by contributing to this ‘second EPF’

 
May I know how invest into PRS without spending any RM to eligible? 

3 Answers
CHING FOO LIEU Staff answered 4 months ago

Eric, what do you mean by that? Pls elaborate more what you mean?

Kim Chnai Lau answered 4 months ago

https://imgur.com/a/UsMIE
Hi CF,
Refer to the attachment link. 

CHING FOO LIEU Staff answered 4 months ago

Hi Eric,
What the statement means is:
Every tax relief is of expenditure nature. 
You need to spend away the money.
For PRS, the money you put into PRS is being invested, it is NOT spent.
You don’t ‘lose’ your money. You just can’t take it out before 55.