If you are an employee with taxable income, have you notice from your monthly payslip that the Potongan Cukai Bulanan(PCB) rate starting from year 2009 is different than previous?
Comparing the old schedule PCB 2004 with the new one PCB 2009, we can notice that there are the differences for:
i) A single person with monthly income of RM2,401 and above will be taxable and eligible for the PCB deduction scheme, whereas previously was RM2,551 and above.
ii) A married person with RM3,251 and above will be taxable and eligible for the PCB deduction scheme, whereas previously was RM3,401 and above.
How to Calculate Monthly PCB Income Tax in Malaysia?
This is the formula for you to calculate your taxable salary:
* EPF = 11% of our gross salary.
* EPF deduction is restricted to RM500 only; any amount above RM500 will not be taken into account.
Assume that you are single, no child, and your monthly salary is RM5000.
i) Your EPF is RM5000 x 0.11 = RM550 (just take maximum RM500 for deduction).
ii) Your taxable salary is RM5000-RM500 = RM4500
iii) Income tax PCB 2009 Chart show RM4500 taxable salary need to pay RM234.
I believe that there will have minor adjustment on the Income Tax PCB 2009 Chart, your taxable income should be less than that. But unfortunately, LHDN still did not update with their Income Tax PCB 2009 Chart on the website yet.
However, if you are over deducted from the PCB, you can claim back the extra income tax paid; and if you are under deducted, you will have to pay for the difference before the deadline of 30 April next year.