What is LHDN payroll software?

LHDN payroll software is payroll software that applies LHDN’s prescribed PCB / MTD computation, shows statutory amounts on payslips, and helps you prepare year-end employee statements. HavaHR is built for Malaysian SMEs: it runs the computerised PCB method on your payroll data, generates Borang EA PDFs from the official template, and offers CSV exports (including a CP8D-style annual summary) for your finance team to reconcile before they file on Hasil.

Is HavaHR LHDN-approved?

LHDN does not publish an “approved payroll vendor” list. HavaHR implements LHDN’s computerised PCB method and refreshes PCB schedules when LHDN publishes updates. Monthly remittance and annual filings still happen in your MyTax / e‑PCB and e‑Data workflows—HavaHR supplies calculations and exports; you (or your tax agent) remain responsible for submission.

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. Payroll software that applies LHDN’s computerised method consistently—like HavaHR—reduces the spreadsheet and lookup errors that often cause under-deduction.

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 by 15 February. Track that date in your own compliance calendar—HavaHR focuses on accurate per-run PCB totals you can copy into MyTax / e‑PCB.

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

PCB (MTD) from LHDN’s computerised method, payslips with statutory lines, Borang EA PDFs, and CSV exports—then you file on Hasil

Built for Malaysian SMEs balancing payroll, EA prep, and Hasil filings

Keep PCB totals consistent before you remit each month

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 (employer)

EA to employees

Typically end of February

Annual employer filing

Confirm on Hasil (often March window)

Under-deduction risk

Penalties under ITA 1967

BIK

Where you record it in HavaHR

Fewer hand-typed PCB mistakes each month

One payroll record feeding payslips and Borang EA

PCB tables refresh when LHDN publishes changes

CSV exports finance can reconcile before portal upload

Platform

What HavaHR brings together

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

PCB / MTD using LHDN’s computerised method

PCB schedule updates when LHDN publishes changes

BIK and relief fields where you record them

TP1 / TP3 inputs captured on employee records

Payslips showing PCB, EPF, SOCSO and EIS

Borang EA PDF (LHDN C.P.8A template) from payroll history

CP8D-style annual CSV export for reconciliation

Per-run payroll CSV including PCB totals

Locked payroll runs for a clear monthly audit trail

Comparison

Compare the important differences quickly

Capability	Excel / Manual	Generic Payroll	HavaHR (LHDN-oriented)
PCB calculation method	Manual lookup tables	Varies	LHDN computerised method
PCB rate updates	Manual annual update	Varies	Updated when LHDN publishes
BIK in PCB	Often missed	Limited	When captured on employee / payroll
Borang EA PDF	Manual reconciliation	Varies	From payroll history (review before issue)
Year-end CSV	Rebuilt each year	Varies	CP8D-style export for reconciliation
MyTax submission	You file	You file	You file (exports assist)

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 signatory details used on Borang EA. These fields flow into printed PDFs—double-check them before you issue forms.
Configure each employee for PCB
Capture marital status, number of children, spouse working status, EPF election, and any TP1 / TP3 declared reliefs. PCB is only as accurate as the data you maintain.
Run monthly payroll with PCB (MTD)
Salaries, allowances, recorded BIK and EPF flow into LHDN’s computerised PCB method each run. Review PCB per employee before you treat the run as final.
Remit PCB through Hasil
Use MyTax / e‑PCB with the totals from your approved payroll run. HavaHR does not submit to LHDN for you; export payroll CSV from a run when you want PCB and wages in one file for reconciliation.
Prepare Borang EA and year-end exports
Generate Borang EA PDFs from payroll history, review every page, then distribute to employees by the usual February deadline. Use the workspace CP8D-style CSV export to cross-check annual totals before finance files with Hasil.

Learn more about PCB, payslips, and Borang EA in HavaHR

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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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