How to Calculate PCB in Malaysia: 2026 Monthly Tax Deduction Guide
Understand how Potongan Cukai Berjadual (PCB) is calculated, what factors affect monthly tax deductions, and how employers can simplify payroll compliance in Malaysia.
What is PCB in Malaysia?
Potongan Cukai Berjadual (PCB), also known as Monthly Tax Deduction (MTD), is a compulsory tax deduction system managed by LHDN in Malaysia.
Employers automatically deduct estimated income tax from an employee's monthly salary based on factors such as chargeable income, marital status and eligible tax reliefs.
What is PCB in Malaysia Payroll?
PCB (Potongan Cukai Berjadual) is a structured mechanism established by LHDN (Lembaga Hasil Dalam Negeri) that requires employers to deduct income tax directly from an employee's monthly pay.
Instead of paying a single lump sum during annual tax filing, PCB distributes an individual's estimated tax liability across the year through monthly deductions.
Accurate PCB calculations help employers reduce payroll errors while helping employees meet their monthly tax deduction obligations.
2026 Child Relief Allowances for PCB Calculation
When computing monthly tax deductions, child relief deductions can reduce your total chargeable income. The following table summarizes the child relief categories and amounts referenced for PCB calculation.
| Category & Eligibility Criteria | Tax Relief Amount (Per Child) |
|---|---|
| Child under 18 years old | RM2,000 |
| Child 18+ years old Studying Certificate / Matriculation | RM2,000 |
| Child 18+ years old Full-time Diploma/Degree in Malaysia, or Degree abroad | RM8,000 |
| Disabled child | RM6,000 |
| Disabled child Pursuing Diploma/Higher in Malaysia, or Degree abroad | RM14,000 |
Frequently Asked Questions
Find answers to common questions about PCB, LHDN tax registration and the documents taxpayers should keep for their tax records.
Who needs to register for an LHDN tax file? +
Any individual earning an annual net employment income of RM34,000 or more after EPF deduction must register for an income tax reference number with LHDN.
Registration can be completed through an LHDN branch or through the applicable online registration service.
What documents are required to register a tax file with LHDN? +
To open an income tax file in Malaysia, taxpayers may be required to provide supporting identification and employment documents, including:
- Latest Salary Statement (EA/EC Form) or latest salary slip.
- Identification Card (MyKad / Army IC / Passport).
- Marriage Certificate (if applicable).
How long must taxpayers keep receipts and tax documents? +
Taxpayers should retain their supporting receipts, dividend vouchers and relevant tax records for at least seven (7) years from the end of the relevant assessment year, subject to the latest LHDN requirements.
What tax records should be kept for audit verification? +
Keep physical or scanned digital copies of supporting documents such as:
- EA / EC Form provided by your employer.
- Original dividend vouchers.
- Insurance premium payment receipts.
- Medical and book purchase receipts.
- Donation receipts from government-approved charitable organizations.
Approved Ways to Pay Personal Income Tax in Malaysia
Taxpayers can pay their personal income tax and PCB balances using several authorized banking channels.
Choose Your Preferred Payment Method
There are several convenient ways to make your personal income tax payment, from online banking to credit cards and over-the-counter services.
FPX Online Payment
Pay directly through the official LHDN ByrHASiL portal using FPX internet banking.
Credit Card
Make online payments using major Visa, Mastercard and American Express credit cards issued in Malaysia.
Bank & Self-Service
Pay through selected bank counters, ATMs, cash deposit machines and cheque deposit machines.
Online Payment Direct Online Payment via FPX (ByrHASiL)
You can pay directly via the official LHDN portal ByrHASiL using FPX internet banking from participating banks.
Credit Card Credit Card Payments
Pay Online Using Your Credit Card
LHDN accepts online payments using major Visa, Mastercard and American Express credit cards issued in Malaysia.
Banking Services Bank Over-the-Counter & Self-Service Terminals
🏦 Over the Counter / Cashier
- CIMB Bank
- Public Bank
- Maybank
- POS Malaysia
- Affin Bank
- Bank Rakyat
- RHB Bank
- BSN
🏧 Self-Service Terminals
Choose the Payment Method That Works for You
Use an authorized payment channel to make your personal income tax or PCB payment.
Visit ByrHASiLSimplify Payroll & PCB Compliance with Automated HR Software
Calculating PCB manually for multiple employees with varying reliefs such as EPF, SOCSO, child status and disability status can lead to payroll errors.
Smart Touch Technology provides automated HR & Payroll Solutions for businesses across Malaysia and Singapore.
36-02 & 36-03, Jalan Permas 10, Bandar Baru Permas Jaya, 81750 Masai, Johor, Malaysia.
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