1. What is PCB Calculation?

Definition: PCB (Potongan Cukai Bulanan) is the Malaysian monthly tax deduction system where employers deduct income tax from employees' salaries.

Purpose: This calculator helps determine the correct monthly tax deduction based on chargeable income, tax rates, and other factors.

2. How Does the PCB Calculator Work?

The calculator uses the formula:

Where:

• \( PCB \) — Monthly tax deduction (RM)
• \( P \) — Chargeable income (RM)
• \( M \) — Income threshold (RM)
• \( R \) — Tax rate (%)
• \( B \) — Base tax (RM)
• \( Z \) — Zakat (RM)
• \( X \) — Previous MTD deductions (RM)
• \( n \) — Remaining months in the year

Explanation: The formula calculates annual tax liability, adjusts for previous payments and zakat, then spreads the remaining amount over the remaining months.

3. Importance of Accurate PCB Calculation

Details: Proper PCB calculation ensures correct tax payments, avoids underpayment penalties, and prevents excessive deductions that could burden employees.

4. Using the Calculator

Tips: Enter all required values. Default values are provided for common scenarios. All monetary values should be in RM.

5. Frequently Asked Questions (FAQ)

Q1: What is chargeable income?
A: Chargeable income is gross salary minus EPF/SOCSO contributions and other allowable deductions.

Q2: How do I determine the tax rate?
A: Refer to LHDN's tax rate schedule based on your chargeable income bracket.

Q3: What if my PCB calculation is negative?
A: The calculator will show RM0 as you've already paid more than your estimated tax liability.

Q4: When should I adjust the remaining months?
A: Change this value based on how many months are left in the calendar year when starting deductions.

Q5: Is zakat deductible from PCB?
A: Yes, zakat payments can be deducted from your tax liability if you have the proper documentation.