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Article written by Chloe
Written by Chloe

Last modified on March 5th, 2024

Overview

PCB stands for “Potongan Cukai Bulanan” which is Malay for “Monthly Tax Deduction”.

It is a series of monthly deductions that go towards payment of your taxes in relation to your employment income. These monthly deductions are retained by your employer and paid over to the Inland Revenue Board (LHDN).

This mechanism is designed to avoid the issues that come with requiring payment of a large sum at the end of the year.

PCB as final tax

Paying PCB can save you from having to file a tax report, if several conditions are met.

For more information, please see Do I need to file a tax return?

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FAQs

Some frequently asked questions...

Instead of paying income tax on their employment income in one lump-sum every year, employees pay tax via monthly salary PCB deductions remitted by their employer to the Inland Revenue Board (LHDN).

PCB is the Malay acronym for “Potongan Cukai Bulanan,” which translates to “Monthly Tax Deduction” in English. 

There are specific conditions for PCB to serve as final tax. 

Individuals meeting those conditions are exempted from filing a tax return, as the monthly PCB deductions fulfill their tax obligations.

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