1. What is a PCB Calculator?

Definition: This calculator estimates the Monthly Tax Deduction (Potongan Cukai Bulanan or PCB) for employees in Malaysia.

Purpose: It helps employers and employees calculate the correct amount of tax to be deducted from monthly salaries.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( PCB \) — Monthly tax deduction amount (RM)
• \( P \) — Total monthly remuneration (RM)
• \( M \) — Monthly tax deduction (RM)
• \( R \) — Tax rate (%)
• \( B \) — Chargeable income (RM)
• \( Z \) — Zakat/Fi/Levy (RM)
• \( X \) — Tax rebate (RM)
• \( n \) — Number of months in a year (typically 12)

Explanation: The formula calculates the monthly tax deduction based on the employee's remuneration, applicable tax rate, and other adjustments.

3. Importance of PCB Calculation

Details: Accurate PCB calculation ensures compliance with tax regulations, prevents underpayment or overpayment of taxes, and simplifies year-end tax filing.

4. Using the Calculator

Tips: Enter all required values including total monthly remuneration, tax rate, and number of months. All monetary values should be in RM.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical value for 'n'?
A: For monthly calculations, n is typically 12 (representing 12 months in a year).

Q2: How do I determine the tax rate (R)?
A: The tax rate depends on the employee's income bracket and tax category. Refer to the latest LHDN tax rates.

Q3: What is included in 'Zakat/Fi/Levy' (Z)?
A: This includes any zakat payments, financial institution levy, or other approved deductions.

Q4: Can PCB be negative?
A: No, the calculator will show zero if the result is negative.

Q5: Is this calculator official?
A: This is for estimation only. Always refer to LHDN guidelines for official PCB calculations.