1. What is a PCB Calculator with Commission?

Definition: This calculator computes the Monthly Tax Deduction (PCB) for employees with commission income in Malaysia.

Purpose: It helps employers and employees determine accurate tax deductions when commission is part of the income.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( PCB \) — Monthly tax deduction (RM)
• \( P \) — Chargeable income including commission (RM)
• \( M \) — Threshold amount (RM)
• \( R \) — Tax rate (%)
• \( B \) — Base tax (RM)
• \( Z \) — Zakat paid (RM)
• \( X \) — Previous MTD deductions (RM)
• \( n \) — Number of months remaining in the year

Explanation: The formula calculates the remaining tax liability and spreads it over the remaining months plus one.

3. Importance of Accurate PCB Calculation

Details: Proper PCB calculation ensures compliance with LHDN regulations, prevents under/over taxation, and helps with financial planning.

4. Using the Calculator

Tips: Enter all income components, tax parameters, and deductions. The calculator will determine the monthly PCB amount.

5. Frequently Asked Questions (FAQ)

Q1: Why is commission treated differently in PCB calculation?
A: Commission is variable income, so PCB needs to account for its irregular nature in tax calculations.

Q2: What's the typical threshold amount (M)?
A: The threshold is usually RM5,000 but may vary based on tax brackets and personal reliefs.

Q3: How do I determine the tax rate (R)?
A: Refer to LHDN's current tax rate schedule based on your chargeable income.

Q4: What if my PCB calculation is negative?
A: The calculator will show RM0 as you cannot have negative tax deductions.

Q5: How often should I recalculate PCB?
A: Recalculate whenever commission income changes significantly or at least quarterly.