How do I calculate PCB (MTD) for my staff?
PCB, also called MTD, is the monthly tax deduction from salary. You work it out with LHDN's computerised method or LHDN's PCB calculator, using each staff's pay, EPF and the reliefs they declare, and pay it to LHDN by the 15th of the next month.
What goes into the number
The month's pay and any bonus or commission, the staff's EPF, their marital status and children, and reliefs they declare on Form TP1 such as insurance or education. Staff who joined mid-year give you Form TP3 with what the last employer already deducted.
Paying it
Register as an employer with LHDN (an E number) through MyTax. Each month send the PCB through e-PCB Plus or your payroll software's file, by the 15th of the following month. At year end give each staff Form EA by the end of February.
Common mistakes
Leaving out bonus months, forgetting TP3 for new staff, and using last year's tables. If a staff earns too little to be taxed, PCB can be zero, and you still record it.
How Lucco Boss helps
Lucco Boss works out PCB with LHDN's computerised method together with EPF, SOCSO and EIS, shows it on each payslip and gives you the monthly totals. Free for up to 5 staff.
Updated · Lucco Technology