What is LHDN payroll software?

LHDN payroll software is payroll software that calculates monthly tax deduction (PCB / MTD) according to LHDN’s computation rules, generates payslips that satisfy Malaysian disclosure requirements, and produces year-end submissions like Borang EA, CP8D and Form E in LHDN-accepted formats. HavaHR is built specifically for Malaysian SMEs and handles all of these in one workflow.

Is HavaHR LHDN-approved?

LHDN does not maintain a formal “approved vendor” list for payroll software. What matters is that the software follows LHDN’s current PCB computation methods and produces submission files in the correct format. HavaHR aligns with LHDN’s computerised calculation method, updates PCB schedules when LHDN publishes changes, and exports e-PCB-compatible files for monthly submissions.

How does LHDN payroll software calculate PCB?

LHDN payroll software calculates PCB using the official MTD computation method: it projects the employee’s annual taxable income, applies eligible reliefs (EPF, life insurance, zakat, TP1 declarations), determines the annual tax liability, then divides across remaining months to produce the monthly PCB. HavaHR runs this calculation automatically every payroll run.

What is the difference between PCB and MTD?

PCB (Potongan Cukai Bulanan) and MTD (Monthly Tax Deduction) are the same thing — “PCB” is the Malay term, “MTD” is the English term. Both refer to the monthly income tax that employers must deduct from employee salaries and remit to LHDN by the 15th of the following month.

Does HavaHR generate Borang EA automatically?

Yes. Because every payroll run feeds into the same employee record, Borang EA generation at year-end is a one-click export — no manual reconciliation between payroll spreadsheets and EA templates. EA forms are produced in PDF, ready to distribute to employees by the LHDN deadline (end of February).

What happens if my PCB calculation is wrong?

Under-deducting PCB exposes the employer to a penalty of 100% of the under-deducted amount plus a fine of up to RM20,000 per occurrence under Section 113(1) of the Income Tax Act 1967. Over-deduction creates refund claims and employee disputes. LHDN-aligned payroll software like HavaHR removes the manual calculation risk that causes most under-deduction errors.

When is PCB due to LHDN each month?

PCB must be paid to LHDN by the 15th of the month following the salary payment month. For example, PCB deducted from January salaries is due to LHDN by 15 February. HavaHR includes deadline reminders so SMEs running payroll for the first time do not miss the cutoff.

Does LHDN payroll software handle BIK (benefits-in-kind)?

Yes. HavaHR lets you record taxable benefits-in-kind such as company cars, accommodation, and gadgets, and includes them in the PCB calculation according to LHDN’s prescribed BIK valuation methods. BIK values also flow automatically into year-end Borang EA.

Malaysian business software

LHDN Payroll Software for Malaysian SMEs

Automated PCB (MTD), LHDN-compliant payslips and one-click Borang EA — built for the way Malaysian employers submit to Hasil

Trusted by Malaysian SMEs to handle LHDN PCB submissions every month

Hit every 15th-of-month PCB deadline with built-in reminders

Free plan available • No credit card required • Upgrade anytime

Key facts

High-signal points for buyers comparing options.

PCB Method

LHDN computerised calculation

Monthly PCB Deadline

15th of following month

EA Form Deadline

End of February

Form E Deadline

31 March

Under-deduction Penalty

Up to 100% of shortfall

BIK Handling

Per LHDN valuation rules

Eliminate the #1 cause of LHDN penalties: under-deducted PCB

Generate Borang EA in one click instead of one week

Stay current with LHDN PCB rate changes automatically

Handle BIK correctly without becoming a tax expert

Platform

What HavaHR brings together

Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.

PCB / MTD calculation (LHDN computerised method)

Auto-updated PCB schedules when LHDN changes rates

BIK (benefits-in-kind) handling per LHDN rules

TP1 / TP3 employee relief declarations

LHDN-compliant payslips (Section 25(1) format)

Borang EA one-click generation

CP8D and Form E support

e-PCB compatible file export

PCB payment deadline reminders

Audit trail of every PCB calculation

Comparison

Compare the important differences quickly

Capability	Excel / Manual	Generic Payroll	HavaHR (LHDN-Aligned)
PCB calculation method	Manual lookup tables	Approximate	LHDN computerised method
PCB rate updates	Manual annual update	Vendor delays common	Updated when LHDN publishes
BIK handling	Often missed	Limited	Per LHDN valuation rules
Borang EA generation	Manual reconciliation	Export, then reformat	One-click from payroll data
PCB deadline tracking	Calendar in someone’s head	No reminders	Built-in 15th-of-month alerts
Audit trail	None	Partial	Every PCB amount traceable

Getting started

How to get started with LHDN payroll software

Set up your company tax profile
Add your employer tax number (E-number), business address, and the LHDN branch you submit to. HavaHR uses these to format Borang EA and CP8D output correctly.
Configure each employee for PCB
Capture marital status, number of children, spouse working status, EPF election, and any TP1 / TP3 declared reliefs. PCB accuracy depends on having these fields right before the first payroll run.
Run monthly payroll with automatic PCB
Salaries, allowances, BIK and EPF deductions feed into the LHDN computerised PCB calculation method automatically. Review the calculated PCB per employee before approving the run.
Submit PCB to LHDN by the 15th
Export the PCB file in the format LHDN e-PCB / e-Data PCB expects, then upload via MyTax. HavaHR keeps a payment-deadline calendar so you never miss the monthly LHDN cutoff.
Generate Borang EA at year-end
In one click, HavaHR produces every employee’s EA form from the same payroll data, ready for distribution by the end of February each year — no spreadsheet reconciliation required.

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Related queries

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Authority sources

LHDNM (Lembaga Hasil Dalam Negeri Malaysia)

Official Malaysian tax authority — PCB computation rules, employer obligations, EA / E forms.

LHDN e-PCB Portal

MyTax portal for monthly PCB submission and employer tax filings.

Income Tax Act 1967 (Section 107 — PCB)

Statutory basis for monthly tax deduction obligations.

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