What is PCB (MTD)? How to calculate?

Overview

PCB stands for "Potongan Cukai Bulanan" which is Malay for "Monthly Tax Deduction".

It is a series of monthly deductions that go towards payment of your taxes in relation to your employment income. These monthly deductions are retained by your employer and paid over to the Inland Revenue Board (LHDN).

This mechanism is designed to avoid the issues that come with requiring payment of a large sum at the end of the year.

PCB as final tax

Paying PCB can save you from having to file a tax report, if several conditions are met.

How does Kakitangan.com help me?

The system automates the PCB calculation in 2 options of your choice - either it follows the LHDN table/schedule/jadual, or it uses the formula published by LHDN.

Either way is fine. The formula takes the YTD parameters (your previous payment) and the jadual doesn't.