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Disabled candidate {{ profileLabel }} {{ monthLabel }} {{ moneyLabel(chargeableIncome) }} P {{ additionalBadgeText }}
Pick the payroll tax treatment before entering remuneration and year-to-date values.
Category 3 covers married spouse working, divorced, widowed, or single with qualifying adopted child.
Used to derive n = {{ balanceMonths }} future month(s), or n + 1 = {{ balanceMonths + 1 }} including this month.
Use taxable remuneration only; exclude exempt allowances and benefits before entering the amount.
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Leave 0 when the payroll month has no bonus or other additional remuneration.
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Default 11% is a common employee rate; payroll records remain the source for actual K values.
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Each unit applies {{ moneyLabel(constants.childRelief) }} of child relief in the formula.
Use current-year accumulated gross normal and additional remuneration before this payroll month.
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Include approved EPF or other approved scheme contributions from this employer and TP3.
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Current-year accumulated PCB/MTD paid before the current payroll month.
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These are optional relief deductions, not automatic individual, spouse, disabled, child, or EPF reliefs.
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Use the approved total after applying TP1 annual limits for medical, childcare, SSPN, insurance, SOCSO, lifestyle, and similar deductions.
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Enter zakat paid through payroll or approved through TP1 for the current month.
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Shown in the remittance split; it does not reduce formula PCB/MTD.
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Samples follow the HASiL 2026 specification example pattern for a Category 3 employee.
Use when the remaining months are expected to differ from this month's normal remuneration.
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This reduces annual tax in the official resident formulas.
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Turn this on when payroll EPF differs from the simple rate estimate.
Use the actual employee EPF or approved scheme contribution for Y1.
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Leave 0 when the additional remuneration is not subject to EPF.
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Adds the official disabled individual deduction when the employee qualifies.
Adds the disabled spouse deduction for Category 2 when the spouse qualifies.
Keep RM unless you are using the calculator for an internal translated worksheet.
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Malaysia monthly tax deduction, commonly called PCB or MTD, is the payroll amount withheld toward an employee's annual income tax. It is not a separate tax. It is a month-by-month prepayment that tries to spread the expected annual tax across the current and remaining payroll months.

Payroll inputs flow through EPF, TP1, TP3, chargeable income, tax table, and current month PCB

PCB depends on residence status, employee category, current-month remuneration, year-to-date remuneration, approved EPF or other approved scheme contributions, reliefs, rebates, zakat, and previous PCB already paid. A bonus, arrears payment, incentive, or other additional remuneration can change the result because the annual projection is recomputed with that pay included.

A useful PCB estimate shows more than one deduction number. It should also expose the chargeable income projection, the tax row used, the relief and rebate amounts, and the separation between statutory PCB and CP38 installments. That separation matters because CP38 may be remitted with payroll, but it is not part of the accumulated PCB variable used in the statutory formula.

How to Use This Tool:

Start with the payroll treatment, then enter the pay and year-to-date values that match the employee's current-year records.

  1. Choose MTD profile. Use Resident employee - normal formula for the ordinary resident calculation, Non-resident employee - 30% of remuneration for non-residents, or one of the approved 15% resident profiles only when the employee has the relevant approval.
  2. For resident profiles, set Employee category, Deduction month, Current normal taxable remuneration, Current additional remuneration, Employee EPF rate, and Qualifying child units. The month sets n, the balance of months after the current deduction month.
  3. Enter year-to-date resident values from payroll records and TP3 where applicable: 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.
  4. Add Current zakat / departure levy rebate and Current CP38 installment separately. Zakat reduces the net current MTD after the monthly formula amount is determined. CP38 is shown in the remittance split but remains outside the accumulated PCB variable X.
  5. Open Advanced when the future monthly salary differs from the current month, when previous zakat should be included, when actual payroll EPF amounts differ from the percentage estimate, or when disabled individual or disabled spouse relief applies.
  6. If the error list appears, fix the named input before relying on the result. Common recovery paths are keeping Deduction month as a whole month, keeping Approved EPF before this month within the RM4,000 qualifying cap used by the worksheet, and making manual EPF amounts no higher than the remuneration they relate to.
  7. Read Payslip Deduction first, then use Formula Variables and Relief & Rebate Audit to check the calculation trail. Deduction Split Chart and JSON help with review or documentation, but the table rows are the best place to audit the numbers.

Interpreting Results:

Current PCB/MTD to deduct is the statutory payroll deduction for the selected month before any CP38 installment is added. Total payroll tax remittance is larger when a current CP38 amount is entered, because it combines current PCB/MTD and CP38 for remittance planning.

Chargeable income P, M / R / B or T, and n explain why the current month changed. A bonus month normally raises P and can add a separate Additional remuneration MTD. A later deduction month lowers the number of remaining months, so the same annual tax balance can produce a larger monthly deduction.

A low or zero PCB result does not prove that the employee has no final income tax. It may reflect the less-than-RM10 rule, reliefs entered for MTD purposes, previous PCB already paid, zakat offset, or a missing year-to-date value. Check the Formula Variables table against payroll records before using the figure for a payslip or employee explanation.

For non-resident profile results, the calculation is much narrower. It applies 30% to the current taxable remuneration entered for the month and does not apply resident reliefs, EPF caps, TP1 deductions, zakat offsets, or the resident P/M/R/B table.

Technical Details:

The resident PCB formula starts by projecting annual chargeable income for the current year. The projection combines accumulated net remuneration before the current month, current normal remuneration, expected future normal remuneration for the remaining months, and current additional remuneration when present. Approved EPF or other approved scheme contributions reduce those remuneration amounts only up to the qualifying annual cap used in the formula.

For the ordinary resident formula, annual tax is calculated from chargeable income P using the table row values M, R, and B. Previous zakat and previous PCB are then subtracted before the remaining tax is spread over n + 1, which means the current month plus the remaining months after it. Current-month zakat is subtracted after the monthly formula amount is rounded and tested against the RM10 rule.

Formula Core

The core resident projection can be summarized as follows.

P = [ ( Y - K ) + ( Y1 - K1 ) + ( ( Y2 - K2 ) n ) + ( Yt - Kt ) ] - [ D + S + DU + SU + QC + ( ΣLP + LP1 ) ]

The monthly deduction for ordinary resident normal remuneration uses the annual tax row selected by P.

Monthly MTD before current zakat = ( ( P - M ) R + B ) - ( Z + X ) n + 1
Variable Meaning Where the value comes from
Y, K Accumulated gross remuneration and approved EPF or approved scheme contributions before the current month. Year-to-date payroll and TP3 values.
Y1, K1 Current normal taxable remuneration and approved contribution on that normal remuneration. Current normal pay and either the EPF rate estimate or manual EPF override.
Y2, K2 Estimated future normal remuneration and future approved contribution for each remaining month. Current normal pay unless a future monthly amount is entered; K2 is limited by the remaining qualifying EPF cap.
Yt, Kt Current additional remuneration, such as bonus, and approved contribution on that additional remuneration. Current additional pay and either the EPF rate estimate or manual EPF override.
D, S, DU, SU, QC Automatic resident reliefs for individual, spouse, disabled person, disabled spouse, and qualifying child units. Employee category, child units, and advanced relief switches.
ΣLP, LP1 Accumulated and current approved optional deductions for MTD purposes. Approved TP1 and TP3 deduction totals entered by the user.
Z, X Accumulated zakat or departure levy before the current month, and accumulated PCB/MTD paid before the current month. Year-to-date payroll and TP3 values. X excludes CP38 and employee-requested additional MTD.

The resident tax row table used by the worksheet is the 2026 P/M/R/B schedule represented in the calculation. Category 2 uses the spouse-not-working B column; Categories 1 and 3 use the other B column.

P range M R B for Category 1 or 3 B for Category 2
0 to 5,00000%00
5,001 to 20,0005,0001%-400-800
20,001 to 35,00020,0003%-250-650
35,001 to 50,00035,0006%600600
50,001 to 70,00050,00011%1,5001,500
70,001 to 100,00070,00019%3,7003,700
100,001 to 400,000100,00025%9,4009,400
400,001 to 600,000400,00026%84,40084,400
600,001 to 2,000,000600,00028%136,400136,400
Exceeding 2,000,0002,000,00030%528,400528,400

Several profile paths bypass or modify the ordinary resident P/M/R/B formula.

Profile Tax treatment in the worksheet Reliefs and offsets
Resident normal Annual tax uses ((P - M) * R) + B, then subtracts previous zakat and previous PCB before spreading over n + 1. Resident reliefs, TP1/TP3 optional deductions, EPF cap handling, previous zakat, current zakat, and previous PCB are included.
Resident with additional remuneration Normal remuneration is calculated first. Additional remuneration adds a separate MTD component by recomputing annual tax with Yt and Kt included. Current additional remuneration MTD is added to the normal MTD after current zakat treatment.
REP or knowledge worker 15% Chargeable income is taxed at 15%. If P is RM35,000 or below, the worksheet applies a RM400 rebate for Category 1 or 3 and RM800 for Category 2. Resident reliefs and resident year-to-date variables still feed the chargeable income projection.
Approved non-citizen C-suite resident 15% Chargeable income is taxed at 15% without the low-income T rebate used by REP or knowledge worker profiles. Resident reliefs and year-to-date variables still feed the chargeable income projection.
Non-resident 30% Current taxable remuneration equals current normal remuneration plus current additional remuneration. PCB is 30% of that amount. Resident reliefs, EPF cap handling, TP1/TP3 optional deductions, zakat offsets, and previous PCB are not applied in this worksheet path.

Rounding and gating rules can change a small payroll result even when the annual projection looks reasonable.

Rule Boundary behavior Why it matters
Intermediate cents Values are limited to two decimal places by omitting later figures. Small fractions do not carry through to later formula steps.
Five-cent rounding Positive MTD amounts are rounded up to the next RM0.05. RM106.19 becomes RM106.20 before it is shown as the current formula amount.
Less-than-RM10 test before zakat If MTD before current zakat is below RM10, the deduction is set to zero. A low annual tax balance may produce no current deduction even before zakat is considered.
Net MTD after current zakat After current zakat is subtracted, a positive net amount is still deducted even if it is below RM10. The RM10 gate applies before current zakat, not as a second gate after it.
CP38 installment Added to total payroll remittance, excluded from accumulated PCB variable X. Including CP38 in X would reduce statutory PCB incorrectly in a later month.

The EPF percentage field is a convenience estimate for K1 and Kt. Exact payroll work should use actual employee EPF or approved scheme amounts, especially where the statutory contribution rate differs by employee category or where the payroll table rounds contributions differently from a simple percentage.

Accuracy and Privacy Notes:

This is a source-backed payroll worksheet, not an IRBM verification letter or payroll approval. Use it for checking, planning, and explaining a PCB calculation, then verify production payroll against the current HASiL specification, approved TP1/TP3 records, payroll EPF records, and professional advice when the result affects real deductions.

  • Tax specifications, relief categories, forms, and EPF contribution rules can change after the review date shown in the result source notes.
  • The worksheet does not decide residence status, REP approval, knowledge worker approval, C-suite approval, relief eligibility, taxable benefit treatment, or whether a payment is exempt.
  • The calculation can be completed without submitting payroll data to a tax service, 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, the worksheet shows Chargeable income P of RM47,000.07. The 35,001 to 50,000 table row produces 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%. The 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 error list warns that it exceeds the RM4,000 annual qualifying cap used by the worksheet. If manual EPF is enabled and Manual EPF on additional remuneration exceeds Current additional remuneration, reduce the manual EPF amount or correct the remuneration value before trusting the Formula Variables table.

FAQ:

Is PCB the same as final income tax?

No. PCB or MTD is a payroll deduction toward annual income tax. The final return can differ because actual income, relief eligibility, rebates, zakat, exempt income, previous employment information, and other tax items may not match the payroll estimate.

Why does CP38 not reduce the formula?

The worksheet follows the formula separation where accumulated PCB variable X excludes tax installments. CP38 is shown in Total payroll tax remittance, but it is not treated as previous PCB inside the statutory calculation path.

When should I use manual EPF amounts?

Use manual EPF when the actual payroll contribution is known or when the employee's rate is not represented by the simple percentage field. The manual fields set K1 and Kt directly, while the worksheet still applies the annual qualifying cap behavior.

Why is the current PCB zero even when there is taxable pay?

A zero result can come from reliefs, previous PCB, previous zakat, the annual tax row, or the less-than-RM10 test before current zakat. Review Chargeable income P, M / R / B or T, Z, and X in the Formula Variables table.

Can this be used for an approved 15% resident profile?

Yes, the profile selector includes REP, knowledge worker, and approved non-citizen C-suite resident paths. Use those only when the employee has the relevant approval, then check whether the result uses the 15% formula and any low-income T rebate shown for the selected profile.

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: