PCB (PCIB) Calculator

PCB Calculation Formula:

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

P (RM):

M (RM):

R (%):

B (RM):

Z (RM):

X (RM):

n (months):

months

PCB (RM):

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1. What is PCB (PCIB) Calculation?

Definition: PCB (Potongan Cukai Bulanan) or Monthly Tax Deduction is a method for calculating monthly tax deductions for employees in Malaysia.

Purpose: It helps employers determine the correct amount of tax to deduct from employees' salaries each month.

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)
\( P \) — Total monthly remuneration (RM)
\( M \) — Monthly EPF deduction (RM)
\( R \) — Tax rate (%)
\( B \) — Tax on the accumulated remuneration (RM)
\( Z \) — Total tax already deducted (RM)
\( X \) — Tax rebate (RM)
\( n \) — Remaining months in the year

Explanation: The formula calculates the monthly tax deduction by considering the employee's remuneration, EPF contributions, applicable tax rate, and other adjustments spread over the remaining months of the year.

3. Importance of PCB Calculation

Details: Accurate PCB calculation ensures proper tax withholding, avoids underpayment penalties, and prevents excessive deductions that could burden employees.

4. Using the Calculator

Tips: Enter all required values in RM except for tax rate (in %) and remaining months. The calculator will compute the monthly PCB amount.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between PCB and PCIB?
A: PCB stands for Potongan Cukai Bulanan (Monthly Tax Deduction) while PCIB stands for Potongan Cukai Individu Berkomputer (Computerized Individual Tax Deduction). PCIB is the computerized version of PCB calculation.

Q2: Where can I find the tax rates (R) and tax on accumulated remuneration (B)?
A: These values are provided in the Malaysian tax tables published by LHDN (Inland Revenue Board of Malaysia) based on the employee's tax category and chargeable income.

Q3: What is included in total monthly remuneration (P)?
A: P includes all forms of remuneration such as basic salary, fixed allowances, bonuses, commissions, and other regular payments.

Q4: How is the remaining months (n) determined?
A: n is the number of months remaining in the calendar year from the current month until December.

Q5: What if the calculated PCB is negative?
A: A negative result typically means no tax should be deducted for that month, possibly due to tax rebates exceeding the calculated tax.