1. What is PCB Tax?

Definition: PCB (Potongan Cukai Bulanan) is Malaysia's Monthly Tax Deduction system where employers deduct income tax from employees' salaries each month.

Purpose: This calculator helps determine the monthly tax deduction based on salary, tax reliefs, rates, and other factors.

2. How Does the PCB Calculation Work?

The calculator uses the formula:

Where:

• \( PCB \) — Monthly tax deduction (RM)
• \( P \) — Monthly salary (RM)
• \( M \) — Total tax reliefs (RM)
• \( R \) — Tax rate (%)
• \( B \) — Tax rebate (RM)
• \( Z \) — Previous PCB paid (RM)
• \( X \) — Additional tax (RM)
• \( n \) — Remaining months in the year

Explanation: The formula calculates chargeable income, applies the tax rate, adjusts for rebates and previous payments, then spreads the remaining tax over the remaining months.

3. Importance of PCB Calculation

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

4. Using the Calculator

Tips: Enter your monthly salary, applicable tax reliefs, tax rate, any rebates, previous PCB paid, additional tax, and remaining months in the year.

5. Frequently Asked Questions (FAQ)

Q1: Where can I find my tax rate?
A: Refer to Malaysia's latest income tax brackets published by LHDN (Inland Revenue Board).

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

Q3: What is the tax rebate (B)?
A: This includes personal relief (e.g., RM9,000 individual relief) and other special rebates.

Q4: Why include remaining months (n)?
A: The calculation spreads the remaining tax liability over the remaining months in the year.

Q5: What if I get a negative result?
A: The calculator shows RM0 when the result is negative, meaning no tax is due for that month.