# Monthly Tax Deduction (PCB) Rules & e-Calculator

What Is It

Monthly Tax Deduction (PCB) or Potongan Cukai Bulanan (PCB) is a compulsory monthly salary deduction mechanism where employers deduct estimated income tax payments directly from their employees' monthly salaries and pay them to the Inland Revenue Board (LHDN) to prevent heavy lump-sum payments at the end of the year.

Who Is Eligible

  • Employees whose monthly income exceeds the minimum taxable threshold (determined by marital status, dependents, and salary level).

    • Required Documents

  • Monthly payslips showing PCB deductions.
  • Form TP1 (Individual Claim Form for Tax Reliefs) - submitted to the employer.
  • Form TP3 (Previous Employment Info Form) - submitted to the new employer when changing jobs.

    • Step-by-Step Procedure

    1. Form TP1 Submission: Fill out Form TP1 and submit it to your employer's HR payroll department to declare personal tax reliefs (lifestyle, medical, child) for monthly PCB calculation adjustments. 2. Verification via e-Calculator: Visit the official LHDN PCB e-Calculator website. 3. Input Salary details: Enter your basic salary, allowances, EPF contributions, marital status, and child count. 4. Compare Calculation: Check that the e-Calculator PCB output matches the PCB deduction value shown on your monthly payslip. 5. Final Settlement: During annual e-Filing (Form BE), the total PCB paid is reconciled with the actual annual tax liability. Excess payments are refunded.

    Cost & Processing Time

  • Cost: Free tool. PCB deduction amounts are based on LHDN Schedule of Tax Deductions.
  • Processing Time: PCB calculations must be computed and processed by employers by the 15th of every month.

    • Where to Apply

  • Calculation Tool: [LHDN PCB e-Calculator](https://mytax.hasil.gov.my)
  • Handled via: Respective employer payroll/HR departments.

    • Important Notes

  • Under the MTD as Final Tax (PCB sebagai Cukai Muktamad) rule, salaried employees do not need to file Form BE annually if their PCB deductions match their actual tax and they have met all specific criteria.