What is PCB?
What is PCB? PCB stands for Potongan Cukai Bulanan or Monthly Tax Deduction (MTD) in English.
PCB/MTD is a tax deduction system where employers deduct their employee’s monthly earnings to reduce the amount of income tax that employees have to pay at the end of the year.
Deduction rates as well as schedules are decided by LHDN. Employers must make deductions based on the given rates and schedule. Fortunately, SQL Payroll can automatically calculate the PCB contribution rates for every employee. Use SQL Payroll to experience convenience without sacrificing accuracy.
Why is PCB useful?
PCB/MTD is designed to help tax payers avoid large amounts of tax payments at the end of the year.
Let us find out what types of earnings subjected to PCB Deductions:
|Subjected To PCB||NOT Subjected To PCB|
For any clarifications regarding other earnings, please contact IRB Malaysia Contact Management Center at 1-300-88-5436.
FAQ for PCB/MTD
How can I get my tax reference number?
For individual income tax number, there are 2 ways of getting your income tax reference number.
- Go to your nearest IRBM branch and register. Bring along a copy of your identity card, renumeration statement.
- Register online through e-Daftar at https://edaftar.hasil.gov.my/
How do I get my Tax Return Form?
Go to the Assessment Branch where your income tax file is registered or go to the nearest IRBM office and request for the form.
Can I transfer my tax file if I have moved states?
Yes, you can. You may request the transfer by emailing, calling or writing a letter to your current IRBM branch and request for the transfer.
Can I make a medical claim for myself?
Yes, you may claim up to RM5000 a year for serious medical expenses on you, your spouse or child and up to RM5000 tax exemptions on medical expenses for your parents.
Do I have to register a company tax file, if the company has not begun operation?
A company tax file has to be registered only when the company has commenced operations/ business.
Can I claim deductions on housing loan interest?
Interest expended to finance purchase of residential property. Relief of up to RM10,000 a year for three consecutive years from the first year the interest is paid. Subject to the following conditions:
The taxpayer is a Malaysian citizen and a resident:
- limited to one residential unit;
- the sale and purchase agreement is signed between 10th March 2009 and 31st December 2010; and
- the residential property is not rented out.
Is the number of the children eligible for exemption restricted under Income Tax Act?
There is no limit to the number of children, but relief will only be given for any dependent, unmarried child who at the time is:
- below 18 years of age;
- if above 18 years of age, is in receipt of fulltime education or is under articleship or indenture in trade or profession; or
- is physically or mentally disabled (relief for physically or mentally disabled child is RM 5,000.00).
Can my zakat or fitrah contribution be used to off-set tax payable?
Yes, you can if you are a Muslim. You have to prepare copies of the original receipt which has to be in your name in order for this claim to be successful.
Will I be penalized if I fail to submit my tax return on time?
Yes, you will receive a penalty. All returns must be submitted within 30 days from the date stated o on the form or based on the period stated by IRBM.
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