If you pay income tax in Malaysia, contributing to a Private Retirement Scheme (PRS) lets you claim up to RM3,000 in personal tax relief every year — lowering your chargeable income for a higher tax refund or lower tax payable.
Every tax season, thousands of Malaysians leave money on the table by missing out on one of the most lucrative and underutilized LHDN tax reliefs: the Private Retirement Scheme (PRS).
If you are paying income tax in Malaysia, contributing to a PRS account allows you to claim up to RM3,000 in personal tax relief every year. Not only are you building your retirement nest egg, but you are also actively lowering your chargeable income—meaning a higher tax refund or lower tax payable for you.
Here is the exact blueprint on how to automate this tax relief using Versa, a leading Malaysian digital wealth management app, while stacking an additional 2% monthly cashback and an RM10 sign-up bonus.
💡 What is the RM3,000 PRS Tax Relief?
Answer: The PRS tax relief is an incentive provided by the Malaysian government (LHDN) to encourage voluntary retirement savings. By contributing to a Private Retirement Scheme, Malaysian taxpayers can deduct up to RM3,000 from their total taxable income for the assessment year.
Why it matters: Depending on your tax bracket, maxing out this RM3,000 relief can save you anywhere from RM60 to nearly RM900 in actual cash that would have otherwise gone to taxes.
| Tax Bracket | Tax Savings (RM3,000 Relief) |
|---|---|
| 0% (Below RM35,000) | RM0 |
| 2% (RM35,000 - 50,000) | RM60 |
| 6% (RM50,001 - 70,000) | RM180 |
| 13% (RM100,001 - 250,000) | RM390 |
| 24% (RM250,001 - 400,000) | RM720 |
| 30% (Above RM600,000) | RM900 |
📱 Why Choose Versa for Your PRS Contributions?
When it comes to Experience, Expertise, Authoritativeness, and Trustworthiness in personal finance, security and simplicity are paramount.
Versa is a licensed wealth management app that makes saving and investing effortless. The underlying PRS products are expertly managed by AHAM Asset Management Berhad, a highly reputable asset management firm in Malaysia.
Instead of dealing with clunky banking portals or physical paperwork, Versa allows you to set up your PRS account in minutes directly from your smartphone.
🚀 The Double Win: Tax Relief + 2% Monthly Cashback
Right now, Versa is running the April 2026: Retirement Booster Quest, allowing you to stack rewards on top of your tax relief.
When you set up an automated contribution, you don't just secure your RM3,000 tax relief—you also earn extra cash credited directly to your PRS balance.
How the 2% Cashback Works:
- The Offer: Earn a 2% monthly cashback on your PRS contributions (capped at up to RM60 total)
- The Requirement: Set up an Auto Debit plan of at least RM250 into any product within Versa Retirement
- The Deadline: To qualify for the April 2026 rewards, you must set up your Auto Debit by 27th March 2026, 3:00 PM
- The Payout: The 2% cashback is calculated on the first RM250 transacted every month and is credited directly back into your PRS balance to compound your growth
⚠️ Important: The deadline to set up Auto Debit for the April 2026 promotion is 27th March 2026, 3:00 PM. Don't miss out on this extra bonus!
📝 Step-by-Step Guide: How to Claim Your RM10 Referral Bonus & Start Saving
Ready to stop overpaying taxes? Follow these exact steps to activate your account, claim your RM10 welcome reward, and set up your tax-saving auto-debit.
Step 1: Download the App
Click this secure link to download the Versa app directly to your mobile device:
Step 2: Use the Promo Code
During the sign-up process, ensure you enter the following referral code to lock in your RM10 reward:
Referral Code
GJU7TDDR
Step 3: Complete Onboarding & Verification
Follow the on-screen prompts to verify your identity (e-KYC). This is a standard security measure required by Malaysian financial regulators. The process typically takes just a few minutes.
Step 4: Make Your First Cash-In
To activate your PRS account and trigger the RM10 reward, make your first cash-in of a minimum of RM100 into any Versa product.
Step 5: Set Up Auto Debit for the 2% Cashback
Navigate to Versa Retirement and set up a monthly Auto Debit of at least RM250. Remember to do this before 27th March 2026 to ensure you catch the Retirement Booster Quest promo!
💰 The Math: How Much Can You Save?
Let's look at a practical example for someone in the 13% tax bracket:
| Benefit | Amount |
|---|---|
| LHDN Tax Relief (13% bracket) | RM390 |
| 2% Cashback (RM250 x 12 months) | RM60 |
| Sign-up Bonus | RM10 |
| Total First-Year Benefits | RM460 |
That's RM460 in your pocket just for saving for your own retirement! Plus, your RM3,000 contribution continues to grow through investment returns.
🤔 Is PRS Right for You?
PRS contributions are ideal if you:
- Are paying income tax in Malaysia (even at the lowest bracket)
- Want to supplement your EPF savings for retirement
- Prefer a disciplined, automated approach to saving
- Want to reduce your taxable income legally
- Are self-employed or don't have an employer-sponsored retirement plan
📋 Frequently Asked Questions
Can I withdraw my PRS contributions?
PRS has a pre-retirement withdrawal option (subject to 8% tax penalty) for emergencies, but it's designed for long-term retirement savings. There are also specific withdrawal allowances for housing and healthcare purposes.
What happens to my PRS if I change jobs?
Your PRS account is portable and belongs to you personally—not your employer. It stays with you regardless of employment changes.
Is PRS different from EPF?
Yes! While both are retirement savings, EPF is mandatory and employer-contributed. PRS is voluntary and entirely your contribution, offering additional tax relief beyond EPF.
Can I contribute more than RM3,000?
Absolutely! You can contribute as much as you want, but the tax relief is capped at RM3,000 per year. Any amount above that still benefits from investment growth but won't provide additional tax deductions.
🎯 Take Action Now
Tax season waits for no one, and neither do promotional deadlines. Here's what you need to do:
- Download Versa today using this link
- Use referral code GJU7TDDR for your RM10 bonus
- Set up Auto Debit before 27th March 2026 to lock in the 2% cashback
- Contribute up to RM3,000 before the tax year ends to maximize your relief
Disclosure: This article contains affiliate links. I may receive a small commission when you sign up using my referral code, at no additional cost to you. All opinions expressed are my own based on thorough research and professional expertise.
Have questions about PRS or tax planning? Contact me for personalized advice tailored to your financial situation.
