1. What is PCB (Monthly Tax Deduction)?

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

Purpose: This calculator helps employees and employers estimate the monthly tax deduction based on current tax rates and personal circumstances.

2. How Does the PCB Calculation Work?

The calculator uses the formula:

Where:

• \( PCB \) — Monthly tax deduction (RM)
• \( P \) — Total monthly remuneration (RM)
• \( M \) — Monthly tax relief (RM)
• \( R \) — Tax rate (%)
• \( B \) — Additional tax (RM)
• \( Z \) — Zakat/Fi/Levy (RM)
• \( X \) — Tax rebate (RM)
• \( n \) — Remaining months in the calendar year

Explanation: The formula calculates taxable income after reliefs, applies the tax rate, adjusts for additional taxes and rebates, then spreads the annual tax equally over remaining months.

3. Importance of PCB Calculation

Details: Accurate PCB calculation ensures proper tax compliance, prevents under/over payment, and helps with personal financial planning.

4. Using the Calculator

Tips: Enter all required values. Default remaining months is 11 (for January calculation). All monetary values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What's included in total monthly remuneration (P)?
A: Basic salary, allowances, bonuses, commissions, and other regular payments subject to tax.

Q2: What are common tax reliefs (M)?
A: EPF contributions, life insurance, medical insurance, education fees, etc. as allowed by LHDN.

Q3: How do I determine my tax rate (R)?
A: Refer to LHDN's current tax rate schedule based on your annual taxable income bracket.

Q4: What is additional tax (B)?
A: Any extra tax from previous under-deductions or additional income sources.

Q5: Why divide by (n + 1)?
A: This spreads the annual tax liability evenly over the remaining months including the current month.