A Guide to PCB Deductions in Malaysia 2024
PCB in Malaysia is a monthly tax system implemented by the Inland Revenue Board (LHDN) to ensure that employees’ tax deductions are collected in a timely manner over the course of a year, instead of making a lump sum payment at the end of the year.
Monthly tax deductions in Malaysia are calculated based on the employee’s gross monthly income including;
- Base pay
- Bonuses
- Allowances
- Benefits
- EPF contributions
- Zakat payments
Employers are responsible for the calculation and deduction of correct PCB amounts from employee salaries. The deducted amount is then submitted to the LHDN by the employer on behalf of the employee. PCB must be submitted to the LHDN by the 15th of every month. Late submissions can result in penalties.
Download the following guide to understand PCB submissions and payment methods in Malaysia.
