Tag Archives: Potongan Cukai Bulanan

How To Calculate PCB for Bonus?

Most of the people will have doubt on how to calculate the PCB for bonus. It’s always best for us to know how the PCB is calculated so that we can plan ahead of our future money. I found that quite a great amount of my year end bonus has deducted. After I figured out, I only know that there’s a formula to calculate PCB for bonus.

yearendbonus

The Potongan Cukai Bulanan (PCB) calculation for bonus is not that straight forward. Here’s how PCB for bonus is calculated:

Let say your monthly salary is RM3,000, you are contributing 11% from your salary to your EPF savings, and you received 1 month bonus in January 2011.

1 month bonus = RM3,000
EPF deduction = RM330
Net Salary = RM2,670
Maximum total EPF deduction allowed for PCB calculation is only RM500. So, maximum available EPF deduction for PCB calculation = RM500 – RM330 = RM170

Bonus to calculate PCB
= Gross bonus – EPF deduction left
= RM3,000 – RM170
= RM2,830

The formula to calculate the PCB for bonus:
PCBcalculation

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Calculate How Much Monthly Income Tax Do You Need To Pay ?

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?

lhdn malaysia

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?

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