What is the PCB payment deadline in Malaysia?

PCB (Potongan Cukai Bulanan) must be remitted to LHDN by the 15th of the following month. For example, January PCB must be paid by 15th February. If the 15th falls on a weekend or public holiday, payment is due the next working day.

What is the penalty for late PCB payment?

Late PCB payment penalty under Section 107(4) Income Tax Act 1967: 10% of the outstanding PCB amount as immediate penalty, plus 5% additional penalty for each subsequent month the PCB remains unpaid, up to maximum 15% additional.

How is the 10% PCB penalty calculated?

The 10% penalty is calculated on the total PCB amount due. Example: If you owe RM5,000 in PCB and pay late, immediate penalty is RM500 (10% of RM5,000). This applies from the first day after the deadline.

What is the 5% monthly additional penalty?

After the initial 10% penalty, an additional 5% is charged for each month PCB remains unpaid. Month 1 late: 10% + 5% = 15%. Month 2: 15% + 5% = 20%. Month 3: 20% + 5% = 25% (maximum total penalty).

Can LHDN waive PCB penalties?

LHDN rarely waives penalties. However, employers may apply for penalty reduction by: submitting written appeal with valid reasons (natural disaster, system failure), providing supporting documentation, and demonstrating corrective measures taken.

What if I fail to deduct PCB from employee salary?

Under Section 107(4), if employer fails to deduct PCB, the employer becomes personally liable for the tax amount. The employer cannot recover this from the employee if deduction was not made at the time of payment.

How do I make late PCB payment?

Pay via: LHDN e-PCB portal (eps.hasil.gov.my), bank payment with Form CP39, or LHDN counter. Include penalties in payment. Submit late payment explanation letter. LHDN will issue penalty notice separately if not self-calculated.

What records prove timely PCB payment?

Keep: bank payment slips with date stamps, e-PCB transaction receipts, Form CP39 acknowledgment, LHDN portal payment confirmation, and email confirmations. These protect against wrongful penalty claims.

Can directors be personally liable for PCB penalties?

Yes, under Section 75A Income Tax Act 1967, directors can be personally liable for company tax obligations including PCB. Directors may face prosecution for willful default in PCB remittance.

How to avoid PCB late payment penalties?

Prevention tips: 1) Set calendar reminders for the 12th of each month, 2) Use payroll software that recalculates PCB each run from maintained employee data, 3) Process payroll by the 5th to allow preparation time, 4) Maintain buffer funds for PCB, 5) Assign a backup person for PCB duties.

Malaysia-compliant guide

PCB Late Payment Penalties: How to Avoid LHDN Fines in 2026

Understanding LHDN penalty structure and how to stay compliant

Direct answer

PCB late payment penalty: 10% of outstanding amount immediately + 5% per month additional (max 25% total). Deadline: 15th of following month. Example: RM5,000 PCB paid 2 months late = RM5,000 + RM500 (10%) + RM500 (5%+5%) = RM6,000 total. Use payroll software with reminders to avoid.

This guide explains PCB late payment penalties, how they're calculated, director liability, and practical strategies to ensure timely LHDN remittance.

Key facts

High-signal points for buyers comparing options.

Deadline

15th of following month

Immediate Penalty

10% of PCB due

Monthly Additional

5% per month

Maximum Penalty

25% total

Legal Basis

Section 107(4) ITA 1967

Director Liability

Section 75A ITA

Fewer manual PCB mistakes that lead to shortfalls

Clear payroll history when reconciling with LHDN

Less spreadsheet risk as headcount grows

Platform

What HavaHR brings together

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

PCB / MTD on each payroll run using LHDN’s computerised method

Payslips and payroll CSV including PCB totals

Borang EA PDF from the same payroll records (review before issue)

CP8D-style totals export for finance reconciliation

Comparison

Compare the important differences quickly

Delay Period	Penalty Rate	Example (RM5,000 PCB)
1-30 days late	10%	RM500 penalty
31-60 days late	15% (10% + 5%)	RM750 penalty
61-90 days late	20% (10% + 5% + 5%)	RM1,000 penalty
90+ days late	25% (maximum)	RM1,250 penalty

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