1. What is PCB (Potongan Cukai Bulanan)?

Definition: PCB is the Malaysian Monthly Tax Deduction system where employers deduct income tax from employees' salaries each month.

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

2. How Does the PCB 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 MTD deductions (RM)
• \( n \) — Remaining months in the year

Explanation: The formula calculates the taxable amount, applies the tax rate, adjusts for base tax and deductions, 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 chargeable income, threshold amount, tax rate, base tax, zakat (if applicable), previous MTD deductions, and remaining months in the year.

5. Frequently Asked Questions (FAQ)

Q1: What is chargeable income?
A: Chargeable income is your total annual income minus all eligible tax reliefs and deductions.

Q2: Where can I find the tax rates and thresholds?
A: Refer to the latest LHDN (Inland Revenue Board of Malaysia) tax tables for current rates and thresholds.

Q3: What if my PCB calculation is negative?
A: The calculator will show RM0 as you cannot have negative tax deductions.

Q4: How often should I recalculate my PCB?
A: Recalculate whenever your income changes significantly or when tax rates/thresholds are updated.

Q5: Does this include all tax reliefs?
A: No, you should adjust your chargeable income to account for all eligible reliefs before using this calculator.