What is PCB ?
PCB is the acronyms of Potongan Cukai Berjadual or Monthly Tax Deductions (MTD) in english. Monthly Tax Deduction (MTD or PCB) which was introduced on 1st January 1995, is a system of tax recovery where employers make deductions from their employees’ remuneration every month in accordance with the MTD Schedule. This is mandatory, in that neither the employer nor employee has any choice in the matter. Any deviation from the requirements of the Income Tax (Deduction from Remuneration) Rules 1994 can only be upon written authorization from IRBM.
PCB if you see in different angle will ease the burden of tax payer from paying the tax in one lump sum into monthly payment.
It is employer responsibilities to deduct the PCB from the remuneration of employee in each month or the relevant month in accordance with the Schedule of Monthly Tax Deductions or Computerised Calculation Method and pay to the Director General.
Schedule of PCB is issued by Inland Revenue Board of Malaysia (IRBM) for employer who does not use computerised payroll software.
PCB Calculator by LHDN
LHDN provide PCB Calculator for the tax payer to calculate their yearly PCB. The benefits of using PCB Calculator by LHDN is summarise as follows :
- Time saving
- There is no over or under payment of tax if all the additional deductions take into account
- Calculate MTD at any time
- No Schedule of MTD
- No manual calculation for additional remuneration
- Employee can check MTD amount calculated by the employer
PCB Calculator can be used at http://calcpcb.hasil.gov.my/
Calculate your own PCB
You might wonder how actually to calculate the income tax PCB. The calculation is simple, let say we take an example of a PCB for someone who married with salary of RM3,000 and has spouse who are working with 1 child.We also take assumption that he earn commission for that month amounting RM1,500.
The calculation as follows :
RM3,000.00 + RM1,500.00 = RM4,500.00
(-) EPF RM495.00
Sub Total RM4,005.00
PCB (married, spouse working with 1 child) = RM 160.00
e-PCB System (Scheduler Tax Deduction)
e-PCB available for employers who do not have a computerised payroll system to calculate and verify STD calculation.
The system helps employers to store employee information and submit STD payment data to the IRBM on-line. This time saving system ensure correct and accurate STD calculation.
e-PCB system can be viewed Continue to here.
PCB is a short form of Potongan Cukai Berjadual where LHDN introduced many years ago
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