Benefits of contributing to the PRS

Diversification: Investors’ contributions will be pooled for the purchase of a diversified portfolio of stocks, fixed income securities as well as other permissible assets which yields returns at lower risks compared with investing directly in any individual investment such as stocks.

Professional management: The funds are managed by professional fund managers with the expertise and resources to manage the assets of the funds.

Ease of transactions: The funds do not require cumbersome administrative paperwork or record keeping on investors’ part in managing a range of investments.

Enjoy tax reliefs: Individuals (both self-employed and employees) are allowed to claim a tax relief on the amount of contribution made to the funds subject to a maximum of RM3,000 per annum, or any other amount as may be determined by the relevant authorities from time to time. Additionally, employers are also allowed to claim a tax deduction on contributions to PRS made on behalf of their employees up to 19% of employees’ remuneration.

Income of the fund is exempt from Malaysian income tax: Since income of the fund is exempt from Malaysian income tax, the income distributed from the funds to you should be exempted from Malaysian income tax as well.