Private Retirement Scheme (PRS) contributors can now withdraw a maximum of RM1,500 tax-free from their Account B for Covid-19 relief.
On 26 March 2020, Malaysia’s Prime Minister announced Private Retirement Scheme (PRS) pre-retirement withdrawals when unveiling the Prihatin Rakyat Economic Stimulus Package.
With this announcement, members below age 55 are able to withdrawal their PRS Sub-account B for amounts up to RM1,500 per PRS Provider.
Terms & Conditions:
- Period for 8% Tax Penalty Exemption for PRS Sub-Account B Pre-Retirement Withdrawal is from 30 April 2020 until 31 December 2020.
- Eligible for members below 55 years old. No limitation for members above 55 years old to withdraw their PRS investment.
- Members can withdraw their PRS sub-account B up to RM1,500 per PRS Provider.
- Only ONE pre-retirement withdrawal is allowed per PRS Provider.
- This withdrawal is only applicable for members who have enrolled for one year or more; members enrolled for less than one year are not eligible for this withdrawal application.
Example of PRS Withdrawal
|Withdrawal Application||PRS Provider||Tax Exemption|
|Application for RM750 withdrawal on 1 May||PRS Provider A||Yes|
|Application for RM750 withdrawal on 1 Jun||PRS Provider A||No: 2nd application will be subject to 8% tax|
|Application for RM1500 withdrawal on 1 May||PRS Provider B||Yes|
|Application for RM2000 withdrawal on 1 May||PRS Provider C||Partial: RM500 (amount above RM1500) will be subject to 8% tax|
- Members may withdraw from one or more PRS funds managed by the same PRS Provider, up to a maximum of RM1,500 from sub-account B with exemption from the 8% tax penalty.
- Members who wish to withdraw from multiple PRS Providers are required to complete the respective PRS Providers’ withdrawal application form.
- Payment will be credited by respective PRS Provider to member’s provided bank account, within 10 business days from the transaction date.
- Documents required are PRS Provider’s Transaction Form/ Withdrawal Form, a copy of member’s NRIC, and copy of member’s bank statement.