What Is PCB?
PCB, also known as Potongan Cukai Bulanan or Monthly Tax Deduction (MTD), is a monthly tax deduction made by employers from an employee’s salary on behalf of Lembaga Hasil Dalam Negeri (LHDN).
It is part of the employee’s income tax payment and must be deducted and submitted by employers monthly.
PCB generally applies to:
- Salaries
- Bonuses
- Commissions
- Allowances
- Overtime payments
- Certain benefits and remuneration
Who Needs to Manage PCB?
PCB obligations generally apply to employers in Malaysia who:
- Hire employees
- Pay monthly salaries or wages
- Deduct employee income tax
- Are registered as employers with LHDN
This includes:
- Sdn Bhd companies
- SMEs
- Startups
- Companies with local or foreign employees
PCB Submission Requirement
| Requirement | Timeline |
| PCB deduction from employee salary | Monthly |
| PCB payment to LHDN | On or before the 15th of the following month |
Example
PCB deducted from employee salaries for:
May 2026
Must generally be paid to LHDN by:
15 June 2026
What Information Is Involved in PCB?
PCB calculations may include:
- Employee salary
- Bonuses & commissions
- EPF contributions
- Tax relief eligibility
- Benefits-in-kind
- Employee tax status
Sample of PCB Submission
Consequences of Failing to Submit PCB
Failure to deduct or remit PCB to LHDN may result in penalties and enforcement action under the Income Tax Act 1967.
Possible Penalties & Consequences
| Offence | Possible Penalty / Consequence |
| Late PCB payment | 10% penalty on unpaid amount |
| Continued failure to pay outstanding PCB | Additional penalties may apply |
| Failure to deduct PCB from employees | Employer may still be liable for unpaid tax |
| Incorrect PCB calculations or submissions | Compliance issues and potential audit exposure |
Important Reminder
PCB deducted from employees is considered tax money payable to LHDN.
Failure to remit PCB on time may result in:
- accumulated penalties
- compliance issues
- payroll complications
- increased scrutiny from LHDN
Sample Penalty / Reminder Notice
Common Mistakes
- Missing monthly PCB payment deadlines
- Incorrect salary or tax calculations
- Forgetting to include bonuses or allowances
- Using outdated PCB calculation methods
- Assuming payroll software automatically guarantees compliance
How Altomate Can Help
Managing PCB can become complicated when payroll records, salary adjustments, bonuses, and employee tax information are not properly maintained.
Many employers only realise payroll issues after penalties or employee tax disputes arise.
Altomate helps simplify the process through:
- Payroll processing support
- PCB calculation & compliance support
- Monthly payroll reminders
- Employee payroll record management
- Payroll reporting assistance
- Bookkeeping integration
- Ongoing payroll compliance support
This helps businesses reduce the risk of:
- Late PCB payments
- Incorrect payroll calculations
- Employee tax disputes
- Payroll compliance penalties
- Last-minute payroll issues
Need Assistance?
Contact Altomate on WhatsApp for assistance with:
- PCB compliance
- Payroll processing
- Employee tax deductions
- Payroll reporting
- Payroll & bookkeeping support
- Ongoing LHDN compliance management
