1. What is Monthly PCB Calculation?

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 chargeable income, tax rates, and other factors.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( PCB \) — Monthly tax deduction (RM)
• \( P \) — Chargeable income (RM)
• \( M \) — Threshold amount (RM)
• \( R \) — Tax rate (%)
• \( B \) — Base tax amount (RM)
• \( Z \) — Zakat paid (RM)
• \( X \) — Previous month-to-date tax deductions (RM)
• \( n \) — Number of remaining months in the year

Explanation: The formula calculates the remaining tax liability and spreads it over the remaining months plus one.

3. Importance of Accurate PCB Calculation

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

4. Using the Calculator

Tips: Enter all required values including chargeable income, threshold, tax rate, base tax, zakat, previous MTD, and remaining months.

5. Frequently Asked Questions (FAQ)

Q1: What is chargeable income (P)?
A: This is the employee's monthly income after all allowable deductions and exemptions.

Q2: Why is there a threshold (M)?
A: The threshold represents the minimum chargeable income before tax applies.

Q3: How is the tax rate (R) determined?
A: The rate depends on the employee's income bracket according to Malaysia's progressive tax rates.

Q4: What is base tax (B)?
A: This is the fixed tax amount for the income bracket before applying the progressive rate.

Q5: Why do we divide by (n + 1)?
A: This ensures the tax liability is fully covered by spreading it over remaining months plus current month.