What is PCB (MTD)?

Collections: Monthly Tax Deduction (PCB).

Written by Chloe

Last modified on October 7th, 2024

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 I nland 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.

For more information, please see Do I need to file a tax return?

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FAQs

Some frequently asked questions...

What is PCB?

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Instead of paying income tax on their employment income in one lump-sum every year, employees pay tax via monthly salary PCB deductions remitted by their employer to the Inland Revenue Board (LHDN).

What does PCB stand for?

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PCB is the Malay acronym for “Potongan Cukai Bulanan,” which translates to “Monthly Tax Deduction” in English.

When can paying PCB serve as final tax?

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There are specific conditions for PCB to serve as final tax.

Individuals meeting those conditions are exempted from filing a tax return, as the monthly PCB deductions fulfill their tax obligations.