1. What is PCB Calculation in Malaysia?

Definition: PCB (Potongan Cukai Bulanan) is Malaysia's Monthly Tax Deduction system where employers deduct income tax from employees' salaries.

Purpose: This calculator helps determine the correct monthly tax deduction based on LHDN's 2024 guidelines.

2. How Does the PCB Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Accumulated chargeable income (RM)
• \( M \) — Deduction from tax table (RM)
• \( R \) — Tax rate (%)
• \( B \) — Base amount from tax table (RM)
• \( Z \) — Zakat paid (RM)
• \( X \) — Accumulated PCB paid (RM)
• \( Q \) — Other deductions (RM)
• \( n \) — Remaining months in the year

Explanation: The formula calculates the monthly tax deduction by considering chargeable income, tax rates, and various deductions spread over remaining months.

3. Importance of Accurate PCB Calculation

Details: Proper PCB calculation ensures compliance with LHDN regulations, avoids under/over deductions, and prevents year-end tax liabilities.

4. Using the Calculator

Tips: Enter all required values from your salary details and tax tables. For new employees, remaining months would be from joining month to December.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find the tax table values (M, R, B)?
A: Refer to LHDN's latest PCB tables (MTD/TP1/TP2) based on your marital status and number of children.

Q2: What's included in other deductions (Q)?
A: This may include tax reliefs, rebates, or special deductions approved by LHDN.

Q3: How is zakat treated in PCB calculation?
A: Zakat paid can be deducted from your tax liability, reducing your monthly PCB.

Q4: What if PCB result is negative?
A: Negative values indicate tax refunds, which should be handled according to LHDN guidelines.

Q5: When should PCB be recalculated?
A: Recalculate when salary changes significantly, after mid-year bonus payments, or when tax reliefs are updated.