Malaysia PCB Calculator

Introduction:

Potongan Cukai Bulanan (PCB), also called Monthly Tax Deduction (MTD), is Malaysia's payroll withholding system for employment income tax. The deduction is taken through payroll during the year so an employee does not wait until tax filing season to settle the whole tax bill. It is a prepayment toward annual income tax, not a separate tax and not a final assessment by itself.

PCB becomes hard to estimate when a payslip is no longer just one fixed salary number. A bonus month, a new job with TP3 values from a previous employer, approved TP1 deductions, zakat, a CP38 installment, or a change in residence profile can all alter the current-month deduction. The payroll question is usually narrower than final tax filing: given the current year's records and the selected 2026 payroll formula, how much should be withheld for this month?

The central number is chargeable income P, a projected annual amount after net remuneration is reduced by formula reliefs and approved deductions. For a normal resident employee, P selects a tax row with M, R, and B values. The remaining annual tax is then spread over the current month and the months left in the year. A late-year bonus can therefore create a larger deduction than the same bonus paid earlier, because fewer months remain to spread the balance.

Resident profile

Uses resident reliefs, employee category, TP1/TP3 values, the EPF qualifying cap, previous PCB, and zakat handling.

Non-resident profile

Applies the current-month non-resident 30% treatment to taxable remuneration and does not use resident reliefs in this worksheet path.

Additional remuneration

Covers bonus, incentive, arrears, director fee, gratuity, ex-gratia, or another non-monthly taxable payment.

CP38

A tax installment paid through payroll. It is added to remittance planning, but it is not included in accumulated PCB variable X.

The most common mistake is treating every payroll tax amount as one interchangeable deduction. PCB, zakat, approved TP1/TP3 deductions, EPF contributions, and CP38 installments affect different parts of the calculation. Keeping those amounts separate makes the result easier to audit and prevents CP38 or zakat from being used in the wrong formula position.

How to Use This Tool:

Work from payroll treatment to pay values, then use the result tables to check the formula trail before copying the figure into a payslip review.

1. Choose MTD profile. Select Resident employee - normal formula for the ordinary resident path, Non-resident employee - 30% of remuneration for a non-resident employee, or one of the approved 15% resident profiles only when the approval exists.
2. For resident calculations, set Employee category and Deduction month. The month drives n, the number of months after the current deduction month, so January and December can produce very different monthly spreads.
3. Enter Current normal taxable remuneration, Current additional remuneration, Employee EPF rate, and Qualifying child units. Use taxable remuneration only, after excluding exempt allowances and benefits before they reach the worksheet.
4. Add year-to-date values from payroll records and TP3 where relevant: Gross remuneration before this month, Approved EPF before this month, PCB/MTD paid before this month, Accumulated TP1/TP3 deductions, and Approved current TP1 deductions.
5. Enter Current zakat / departure levy rebate separately from Current CP38 installment. Zakat can reduce the net current MTD after the monthly amount is calculated. CP38 is shown in total remittance but does not reduce formula PCB.
6. Open Advanced for future monthly normal remuneration, previous zakat, manual current EPF amounts, disabled individual relief, disabled spouse relief, or a different display currency label. Use manual EPF when actual payroll contributions differ from a simple percentage estimate.
7. If an error list appears, fix the named field before using the result. The calculator flags a non-whole deduction month, previous approved EPF above the RM4,000 qualifying cap used here, and manual EPF amounts that exceed the remuneration they relate to.
8. Start with Payslip Deduction, then check Formula Variables and Relief & Rebate Audit. The Deduction Split Chart, Source Notes, and JSON outputs are useful for documentation, but the table rows are the safest place to verify payroll figures.

Interpreting Results:

Current PCB/MTD to deduct is the statutory deduction for the selected payroll month. Total payroll tax remittance adds any Current CP38 installment, so it can be higher than the PCB figure shown for the formula.

For resident results, the strongest audit clues are Chargeable income P, M / R / B or T, n, Z, and X. These fields explain whether the deduction changed because projected annual income moved to a different row, because fewer months remain, because previous PCB was already paid, or because previous zakat and current zakat affected different parts of the calculation.

A zero or very low result should not be read as proof that the employee has no final income tax. It may come from reliefs, previous PCB, previous zakat, the less-than-RM10 test, or missing current-year records. Compare the Formula Variables table with the payroll register and TP3 before relying on a low amount.

The non-resident path is intentionally narrower. It applies 30% to current taxable remuneration entered for the month and does not apply resident reliefs, TP1 deductions, previous PCB, zakat offsets, or the resident P/M/R/B table in this worksheet path.

Technical Details:

The 2026 resident computerized MTD method begins with an annual projection. Accumulated remuneration before the current month, current normal remuneration, expected future normal remuneration, and current additional remuneration are reduced by approved EPF or approved scheme contributions where those contributions qualify for the formula. Resident reliefs and approved optional deductions then reduce the projected annual amount to P.

Ordinary resident annual tax is built from the tax row selected by P. The row supplies M, R, and B. Previous zakat or departure levy and previous PCB are subtracted before the remaining annual tax is divided by n + 1, meaning the current payroll month plus the months still to come. Current zakat is applied after the monthly amount has been calculated, rounded, and tested against the RM10 rule.

Formula Core

For the resident projection, chargeable income P is computed from net remuneration and formula reliefs.

For normal resident remuneration, the monthly amount before current zakat comes from the annual tax row and the accumulated amounts already paid or offset.

The ordinary resident row schedule used here follows the represented 2026 P/M/R/B table. Category 2 uses the spouse-not-working B column; Categories 1 and 3 use the other B column.

Several profiles use a different tax treatment after the chargeable income projection is built.

Rounding and boundary rules matter because payroll deductions are often reviewed to the cent.

The employee EPF rate is a convenience estimate for K1 and Kt. For exact payroll work, use the actual employee EPF or approved scheme amounts because statutory contribution schedules, employee category, and payroll rounding can differ from a simple percentage of remuneration.

Accuracy and Privacy Notes:

This calculator is an informational payroll worksheet, not a tax ruling, IRBM approval, or professional tax advice. Use it to check and explain PCB, then verify production payroll against current HASiL specifications, employer records, approved TP1/TP3 forms, and actual payroll EPF values.

• Tax specifications, relief categories, form wording, and EPF contribution rules can change after the source review date shown in the result notes.
• The calculator does not determine residence status, approval for 15% resident profiles, relief eligibility, taxable benefit treatment, or whether a payment is exempt.
• The calculation can be completed without sending payroll data to a tax authority, but exported CSV, DOCX, JSON, chart files, browser history, and shared URLs can expose salary and tax values.

Worked Examples:

Resident January salary. A Category 3 resident employee in January has Current normal taxable remuneration of RM5,500, manual EPF on normal remuneration of RM605, and 3 qualifying child units. With no previous remuneration, TP1 deductions, zakat, additional remuneration, or CP38, Chargeable income P is RM47,000.07. The 35,001 to 50,000 row gives RM1,320 annual tax, so Current PCB/MTD to deduct is RM110.00.

Resident April bonus month. A Category 3 resident employee in April has RM5,500 normal remuneration, RM8,250 additional remuneration, RM605 manual EPF on normal pay, RM908 manual EPF on additional pay, RM16,500 previous gross remuneration, RM1,815 previous EPF, RM328.20 previous PCB, RM300 accumulated optional deductions, and RM300 current TP1 deductions. The result shows Normal MTD before current zakat of RM106.20 and Additional remuneration MTD of RM727.50, so Current PCB/MTD to deduct is RM833.70.

Non-resident with CP38. A non-resident profile with RM9,000 current normal taxable remuneration, RM3,000 current additional remuneration, and RM250 current CP38 installment produces Current PCB/MTD to deduct of RM3,600.00 because RM12,000 is taxed at 30%. Total payroll tax remittance is RM3,850.00 after CP38 is added.

Troubleshooting an EPF warning. If Approved EPF before this month is entered as RM4,500, the calculator warns that it exceeds the RM4,000 annual qualifying cap used here. If manual EPF is enabled and Manual EPF on additional remuneration is higher than Current additional remuneration, correct the EPF amount or the additional remuneration before using the Formula Variables table.

Advanced Tips:

• Use actual payroll EPF amounts in the manual EPF fields when the payslip contribution differs from the percentage estimate. The RM4,000 annual qualifying cap still limits the resident formula values.
• Enter previous zakat, current zakat, and CP38 in their separate fields. Previous zakat affects the annual balance, current zakat reduces the current net MTD, and CP38 is added only to total remittance.
• Set future monthly normal remuneration when a known salary change applies after the current month. Otherwise the calculation projects the current normal remuneration into the remaining months.
• In a bonus month, compare Normal MTD before current zakat with Additional remuneration MTD before using the total. The separate rows make it easier to explain a larger-than-usual payslip deduction.
• Check the Source Notes review date before production payroll use. A payroll worksheet should be reconciled with the latest HASiL specification, approved TP1/TP3 records, and employer payroll controls.

FAQ:

Glossary:

PCB or MTD

Monthly payroll tax deduction toward Malaysia income tax.

Chargeable income P

The projected annual amount after net remuneration is reduced by resident reliefs and approved deductions for the formula.

TP1

The current-year employee claim form for approved deductions and rebates used for MTD purposes.

TP3

The previous employment information form used to bring current-year remuneration, EPF, zakat, PCB, and accumulated deductions into the MTD calculation.

CP38

A tax installment remitted through payroll that is separate from statutory PCB in the formula.

Additional remuneration

Bonus, incentive, arrears, director fee, gratuity, ex-gratia, or similar non-monthly taxable remuneration.

References:

• Specification For MTD Calculation Using Computerised Calculation For 2026, Lembaga Hasil Dalam Negeri Malaysia, updated 01 January 2026.
• Employer (Payroll) - Data Specification, Lembaga Hasil Dalam Negeri Malaysia.
• Form PCB TP1 (1/2026) Individual Deduction And Rebate Claim Form, Inland Revenue Board of Malaysia, Form PCB/TP1 (1/2026).
• Form PCB TP3 (1/2026) Previous Employer Employment Information In Current Year For MTD Purpose Claim Form, Inland Revenue Board of Malaysia, Form PCB/TP3 (1/2026).
• Mandatory Contribution, Employees Provident Fund.