Monthly Tax Deduction (PCB) is a tax instalment system where income tax is automatically deducted from an employee’s monthly salary.
PCB was introduced by the Inland Revenue Board of Malaysia (LHDN) with the following objectives:
- Reduce year-end tax burden
By paying tax in monthly instalments, you do not have to worry about making a large lump sum payment at the end of the year.
- Ensure tax compliance
Automatic deductions help you fulfil your tax obligations consistently and on time.
Minimum annual income subject to PCB: RM37,333
Check taxable employment incomeTypes of Income Subject to PCB:
- Fixed monthly salary
- Allowances or annual bonuses
- Cash-based benefits received as part of income
Updated date: 14/10/2025
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