1. What is a Simple PCB Calculator?

Definition: This calculator estimates the Monthly Tax Deduction (PCB) based on chargeable income, tax thresholds, rates, and other factors.

Purpose: It helps individuals and employers calculate the approximate monthly tax deduction for employees in Malaysia.

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)
• \( n \) — Remaining months in the year

Explanation: The formula calculates the annual tax liability, adjusts for zakat and previous deductions, then spreads the remaining 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 all required values in RM. Default values are provided for common scenarios, but adjust as needed for your specific situation.

5. Frequently Asked Questions (FAQ)

Q1: What is chargeable income (P)?
A: This is your monthly income after all deductions and exemptions.

Q2: Why is the threshold (M) important?
A: Only income above this threshold is subject to taxation at the specified rate.

Q3: How do I determine the tax rate (R)?
A: Refer to the latest Malaysian tax brackets from LHDN.

Q4: What if my PCB calculation is negative?
A: The calculator will show 0 as you cannot have negative tax deductions.

Q5: When should I adjust the remaining months (n)?
A: Typically 11 for January, decreasing by 1 each month, but adjust if starting mid-year.