1. What is PCB (Monthly Tax) Calculator?

Definition: This calculator estimates the monthly tax deduction (Potongan Cukai Bulanan) for employees in Malaysia.

Purpose: It helps employers and employees calculate the correct amount of monthly tax deductions based on remuneration and other factors.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( PCB \) — Monthly tax deduction (RM)
• \( P \) — Total remuneration (RM)
• \( M \) — Monthly deduction (RM)
• \( R \) — Tax rate (%)
• \( B \) — Chargeable income (RM)
• \( Z \) — Tax rebate (RM)
• \( X \) — Tax relief (RM)
• \( n \) — Number of months in a year

Explanation: The formula calculates the monthly tax by considering the taxable income after deductions, applying the tax rate, adjusting for chargeable income and rebates, then spreading it over the months.

3. Importance of PCB Calculation

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

4. Using the Calculator

Tips: Enter all required values. Total remuneration and number of months must be positive. Tax rate should be in percentage (e.g., 15 for 15%).

5. Frequently Asked Questions (FAQ)

Q1: What is the standard number of months (n)?
A: Typically 12 months for annual calculation, but may vary for part-year employment.

Q2: How do I determine the tax rate (R)?
A: Refer to the latest Malaysian tax brackets from LHDN (Inland Revenue Board).

Q3: What's included in monthly deductions (M)?
A: EPF contributions, SOCSO, and other approved deductions.

Q4: What is chargeable income (B)?
A: Additional taxable income not included in regular remuneration.

Q5: What if my PCB calculation is negative?
A: The calculator shows RM 0.00 as minimum (no negative tax).