Frequently Asked Questions (FAQ)
What is PCB?
PCB (Monthly Tax Deduction) is a system where employers deduct income tax from employees' salaries every month and pay it to LHDN. It is an advance payment of income tax.
Who needs to pay PCB?
All employees with income exceeding the minimum threshold set by LHDN need to pay PCB. Employers are responsible for making these deductions.
When is PCB deducted?
PCB is deducted monthly by employers from employees' salaries and paid to LHDN before the 15th of the following month.
Is PCB the same as final income tax?
Not necessarily. PCB is an advance payment. The actual tax amount will be determined when filing annual tax returns. You may be eligible for a refund or need to pay additional tax.
How does zakat reduce PCB?
Zakat payments made through employers can be deducted directly from PCB. You need to submit proof of zakat payment to your employer.
What is the difference between PCB categories?
Category 1 is for singles, Category 2 is for married with non-working spouse, and Category 3 is for married with working spouse. Each category has different relief rates.