1. What is LHDN PCB Calculator?

Definition: This calculator computes the Monthly Tax Deduction (Potongan Cukai Bulanan or PCB) for Malaysian income tax according to LHDN (Inland Revenue Board of Malaysia) formula.

Purpose: It helps employees and employers estimate monthly tax deductions based on chargeable income, tax rates, and other factors.

2. How Does the 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 (RM)
• \( Z \) — Zakat (RM)
• \( X \) — Previous MTD (RM)
• \( n \) — Number of months

Explanation: The formula calculates the taxable amount, applies the tax rate, adjusts for base tax and deductions (zakat and previous MTD), then spreads the amount over the remaining 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 your chargeable income, applicable threshold, tax rate (as percentage), base tax, zakat (if any), previous MTD payments, and number of months. Default values are provided for common scenarios.

5. Frequently Asked Questions (FAQ)

Q1: What is chargeable income (P)?
A: This is your monthly gross salary minus EPF/SOCSO contributions and other allowable deductions.

Q2: How do I determine the threshold (M)?
A: The threshold depends on your tax bracket. For example, RM5,000 for the first tax bracket.

Q3: Where can I find the tax rate (R) and base tax (B)?
A: Refer to LHDN's latest tax rate schedule for individual taxpayers.

Q4: Why is (n + 1) used in the denominator?
A: This accounts for the current month plus remaining months in the year for tax calculation.

Q5: Is this calculator official?
A: This is an estimation tool. For official PCB calculations, consult LHDN or your employer's payroll department.