Last updated: February 2026
PCB Calculation Malaysia: The Complete Guide (2025)
The complete guide to MTD/PCB compliance, rates, and calculations for Malaysian SMEs.
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Learn More About PCB (MTD)
PCB (Potongan Cukai Berjadual) is a mandatory monthly tax deduction from an employee's salary in Malaysia. It is calculated based on estimated annual income, minus allowable tax reliefs (e.g., individual relief, spouse, children, EPF). The resulting tax payable is divided by the number of months to determine the monthly deduction. LHDN mandates the Computerised Calculation Method for accuracy.
Learn how PCB is calculated in Malaysia. Detailed explanation of the formula, taxable income types, optional deductions, and how to ensure compliance with LHDN requirements.
Frequently Asked Questions
How is PCB calculated in Malaysia?
PCB is calculated based on the Computerised Calculation Method (Kalkulator PCB) provided by LHDN. It considers your gross income, allowable deductions (reliefs), and tax rebates. The formula estimates your annual tax and divides it by 12 months.
What is the difference between PCB and MTD?
There is no difference. PCB stands for "Potongan Cukai Berjadual" in Malay, and MTD stands for "Monthly Tax Deduction" in English. They refer to the same monthly income tax deduction mechanism.
What income is subject to PCB?
PCB applies to employment income including salary, wages, overtime, commission, tips, allowances, bonuses, director fees, and perquisites. Benefits-in-kind (BIK) and Value of Living Accommodation (VOLA) are also taxable but may have different PCB treatments.
Is PCB the final tax?
For employees with only employment income who have chosen MTD as Final Tax, yes. However, if you have other income sources or want to claim additional reliefs not factored into PCB, you should file your e-Filing (Form BE) by April 30th.