1. What is PCB?

PCB (Potongan Cukai Bulanan) is the Malaysian Monthly Tax Deduction system where employers deduct income tax from employees' salaries each month based on estimated annual tax liability.

2. How Does the Calculator Work?

The calculator uses the basic PCB formula:

Where:

• \( annual\ income \) — Total yearly income in MYR
• \( deductions \) — Allowable tax deductions in MYR
• \( tax \) — Calculated based on Malaysian tax brackets

Explanation: The calculator estimates monthly tax deductions by first calculating annual tax on net income (after deductions) and dividing by 12 months.

3. Importance of PCB Calculation

Details: Accurate PCB calculation ensures proper tax withholding throughout the year, avoiding large tax bills or refunds during annual tax filing.

4. Using the Calculator

Tips: Enter annual income in MYR and total allowable deductions. The calculator will estimate your monthly PCB deduction.

5. Frequently Asked Questions (FAQ)

Q1: What are common tax deductions in Malaysia?
A: Common deductions include EPF contributions, life insurance premiums, medical insurance, education expenses, and charitable donations.

Q2: Is PCB the same as income tax?
A: PCB is monthly withholding tax that counts toward your annual income tax liability. You may still need to file an annual tax return.

Q3: What if my PCB deductions are too high or low?
A: You can request your employer to adjust your PCB rate by submitting Form TP3 to the Inland Revenue Board (LHDN).

Q4: Are there different PCB rates for different employment types?
A: Yes, rates differ for regular employment, contract employment, and directors. This calculator assumes regular employment.

Q5: Where can I find official PCB rates?
A: Official PCB rates are published by LHDN in their PCB Circular and can be found on their website.