1. What is PCB Calculator 2020?

Definition: This calculator estimates Monthly Tax Deduction (PCB) for Malaysian employees based on the 2020 tax structure.

Purpose: It helps employers and employees calculate the correct monthly tax deduction amount.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( P \) — Accumulated chargeable income (RM)
• \( M \) — Deduction from tax table (RM)
• \( R \) — Tax rate (%)
• \( B \) — Amount from tax table (RM)
• \( Z \) — Zakat (RM)
• \( X \) — Accumulated PCB (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.

3. Importance of PCB Calculation

Details: Accurate PCB calculation ensures proper tax withholding, avoids underpayment penalties, and prevents large tax bills at year-end.

4. Using the Calculator

Tips: Enter all required values (P, M, R, B, n). Optional deductions (Z, X, Q) can be included if applicable. All monetary values in RM.

5. Frequently Asked Questions (FAQ)

Q1: Where do I find M, R and B values?
A: These values come from the official PCB tax tables based on your income range and category.

Q2: What if my PCB calculation is negative?
A: The calculator automatically sets negative results to zero as you cannot have negative PCB.

Q3: Why do we divide by (n + 1)?
A: This accounts for the current month plus remaining months in the year for proper tax distribution.

Q4: How often should PCB be recalculated?
A: Typically monthly, as income and deductions may change each month.

Q5: Is this calculator official?
A: This is for estimation only. Always refer to LHDN for official PCB calculations.