PCB Calculator for Salary | Monthly Tax Deduction

PCB Calculation Formula:

\[ PCB = \frac{(P - M) \times R + B - (Z + X)}{n + 1} \]

Monthly Salary (P):

Monthly Deduction (M):

Tax Rate (R):

Tax Charge (B):

Total Zakat/Fi (Z):

Total Tax Relief (X):

Remaining Months (n):

Monthly PCB Deduction:

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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: It helps employees pay their income tax gradually throughout the year rather than in one lump sum.

2. How Does the PCB Calculation Work?

The calculator uses the formula:

\[ PCB = \frac{(P - M) \times R + B - (Z + X)}{n + 1} \]

Where:

\( PCB \) — Monthly tax deduction (RM)
\( P \) — Monthly salary (RM)
\( M \) — Monthly deductions (EPF, SOCSO, etc.) (RM)
\( R \) — Tax rate (%)
\( B \) — Tax charge (RM)
\( Z \) — Total zakat/fitrah paid (RM)
\( X \) — Total tax reliefs (RM)
\( n \) — Remaining months in the calendar year

Explanation: The formula calculates the chargeable income, applies the tax rate, adjusts for reliefs and zakat, then spreads the remaining tax liability over the remaining months.

3. Importance of PCB Calculation

Details: Accurate PCB calculation ensures proper tax compliance, prevents underpayment penalties, and helps with personal financial planning.

4. Using the Calculator

Tips:

Enter your gross monthly salary (P)
Include all statutory deductions (M) like EPF (11%) and SOCSO
Use current year's tax rate (R) and charge (B) from LHDN
Include all eligible zakat (Z) and tax reliefs (X)
Enter remaining months in the year (n)

5. Frequently Asked Questions (FAQ)

Q1: Where can I find the current tax rates and charges?
A: Refer to the latest LHDN (Inland Revenue Board of Malaysia) tax tables or use their official PCB calculator.

Q2: What's included in monthly deductions (M)?
A: Typically includes EPF (11% of salary), SOCSO, and other approved deductions.

Q3: How do I determine remaining months (n)?
A: Count months remaining in the calendar year including current month (e.g., March = 10 months remaining).

Q4: What if my PCB calculation is zero?
A: This means your chargeable income is below taxable threshold after deductions and reliefs.

Q5: Is this calculator official?
A: No, for official calculations always refer to LHDN's tools or consult a tax professional.