PCB Calculator 2022 for Payroll HRMS in Malaysia
PCB Calculator 2022 – Monthly Tax Deduction for Payroll HRMS in Malaysia
PCB, short from Potongan Cukai Bulanan, aka MTD short from Monthly Tax Deduction in both Malay and English in Malaysia. PCS is an essential tax deduction for all of the Malaysian employment as it directly applied a deduction towards employee salary.
Learn more about iFLEXiHRMS Payroll System towards PCB Calculator 2022 Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s PCB Calculator relevant document such as EA form and employee’s payslip. It is a simple and easy payroll software system by allowing your company employee’s PCB Calculator in Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
Why PCB exists?
PCB is considered a main income, which generally allow a country to gain it as an income and contribute to the Gross Domestic Product (GPD). A country will spend these collected taxes by improving standard of living, growth economic, raising job creation and many more categories that used in our society.
Taxes from PCB calculator can be used for improving Health care services, Education funding, Governments, petrol & gas, and many of the other services which are closest and related to our daily livings.
So who are entitled to PCB Calculator 2022 in Malaysia?
There are several types of workers which are entitled to PCB Calculator in Malaysia, which are the following:
Full time Workers
The biggest party share among all the employee throughout Malaysia. Full time employee comes with several benefits such as annual leave, sick leave and insurance, usually worked in company and government Malaysia, which also makes them the most of the contribution percentage to PCB Calculator in Malaysia.
Part time Workers
Compared to full time workers, part time workers are usually get paid by hourly whereas the longer time they worked the higher salary they get paid. However, their working hour shouldn’t be more that 70% from a full time worker.
Part time Workers share the most/same benefits with full time workers.
Contract Workers
Contract Workers are people that work under a contract for an employer. He or she neither truly belongs to a company but with a certain amount of time while the contract is still valid.
Freelancers
Freelances are people who work with several companies with their expert knowledge. They neither belong to any of the company they worked for.
Which types of salary you shall pay/deduct towards PCB Calculator 2022 in Malaysia?
We know that in HRMS Payroll Malaysia consists of a lot of employee’ salary type which including gross pay, bonus, incentive and other else. But do you know which types of employee salary have to perform a deduction to PCB calculator in Malaysia?
Employee’ salary type that entitled for PCB Calculator
- Salary & Wages
- Overtime (OT)
- Allowance
- Bonus
- Travelling Allowance
- Commission
- Incentive
- Appraisal & Rewards
- Angpow
- Annual Leave (Unused Conversion)
- Gratuity
- Benefits for termination
- Benefits for retirement
- Director Fee
- Perquisite
- ESOS
- Tax (Covered by employer)
- BIK
- VOLA
Learn more about types of salary that should be contributed and deduction for EPF, SOCSO, EIS, PCB Calculator and more.
Learn more about iFLEXiHRMS Payroll System towards PCB Calculator 2022 Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s PCB Calculator relevant document such as EA form and employee’s payslip. It is a simple and easy payroll software system by allowing your company employee’s PCB Calculator in Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
Relief For PBC Calculation in Malaysia
PCB Calculator Relief is given as a standard deduction against an taxpayer’s Total Income. On another words, it is used for deduction after calculating all year income (including personal salary, bonus, incentive, some allowances and others).
There are several personal relief available for PCB calculator deduction which are:
- Personal Reliefs
- Lifestyle Reliefs
- Further Personal Reliefs
- Wife or Formal Wife Reliefs
- Husband Reliefs
- Child Reliefs
- Insurance Reliefs
- Medical or Education Reliefs
- Rebates
1. Personal Relief
Personal Relief is given as a standard deduction against an Individual taxpayer’s Total Income.
- Personal Relief only given to Malaysian resident individuals.
- Excess reliefs cannot be refunded or carried forward.
- The types of relief claimed by a taxpayer in any Y/A are affected by his personal circumstances in that basis period.
(a)Personal relief of RM9,000
(b)Medical expenses up to RM5,000 on taxpayer’s parents (including nursing home, dental & foreign maid)
(c)Disability relief up to RM6,000 for basic supporting equipment for a disabled self, wife, child or parent
(d)Further RM6,000 for that individual if he is a disabled taxpayer
(e)Actual cost up to a maximum of RM7,000 for pursuing any course of study at Undergraduate / Masters / Doctoral level in a Malaysian institution recognized by the Government
(f)Up to a maximum of RM6,000 on medical expenses if the taxpayer, his wife or child is suffering from a serious disease such as AIDS, Parkinson’s disease, cancer, renal failure, leukemia or other serious diseases
(g)Taxpayer relief for deposits in the National Education Savings Scheme (NESS) is RM8,000.
(h)Parental care relief of RM1,500 in respect of each parent and subject to conditions:(i) parents are natural or foster parents aged 60 years & above; (ii) are Malaysian residents, and (iii) parents annual income does not exceed RM24,000 for each parent.
Relief of SOCSO Contribution – A relief up to the maximum of RM250 per year is given for contributions made to the social security organization (PERKESO)
Please refer to SOCSO Contribution Table here.
2. Lifestyle Relief
This relief provided is for:
- Purchase of books, journals magazines etc
- Sports equipment
- Purchase of computer, smart phone or tablet
- Subscription of broadband internet
- Gymnasium membership fee.
3. Further Personal Relief
Relief towards purchase breastfeeding equipment up to RM1,000 given to working women with children up to 2 years.
Relief up to RM1,000 to enroll children (up to 6 years) in child care centers or kindergarten.
4. Wife or Former Wife Relief
An individual resident for the basis year of a Y/A who has a wife is given a wife relief of RM4,000 with a further RM3,500 if the wife is disabled.
Full year relief given for year of marriage without time apportionment.
If wife has income and assessed separately.
5. Husband Relief
Where a husband has no total income or no source of income and an election has been made by husband, the wife is given a relief of RM4,000 with a further RM3,500 if the husband is disabled.
6. Child Relief
Where a resident individual maintains a child at any time during a basis year, he is entitled to child relief of RM2,000 for each child.
To claim relief under Sec. 48(1), the child must be:
- (a) an unmarried & under 18 years of age at any time in the basis year; [Sec.48(2)(a); OR
- (b) unmarried (of any age) & receiving full time instruction at any university, college, school or other similar educational institution; OR
-
(c) unmarried (of any age) & serving under articles or indentures in order to qualify in a trade/profession ; OR
If the child receives further education IN M’sia at diploma level & above & ABROAD at degree level & above), the child relief is increased 4 times to RM8,000
-
(d) unmarried (of any age) & proved to DGIR’s satisfaction that child is physically or mentally disabled.
Where a deduction is claimable by two persons for the same child ( i.e. following a separation ), the total deduction must NOT exceed the prescribed child relief. The relief for each claimant in respect of the same child is 50% of the total amount spent
7. Insurance Relief
A maximum of RM7,000 relief is allowed annually, RM3,000 for Takaful/Life Insurance Premium payments paid (not just payable) (on own/spouse/joint lives) and RM4,000 for Employee Provident Fund (EPF) contributions in aggregate (and contributions to other approved funds). Public servants on pension fund can claim all RM7,000 (maximum) on takaful or insurance premiums.
For joint assessment (& separate assessment) a further deduction up to RM7,000 is given for any insurance & EPF contribution made by spouse.
Contributions to Annuity Premium and/or Private Retirement Schemes (PRS) Contributions will be entitled to a maximum of RM3,000 relief.
8. Medical or Education Relief
For premiums paid on medical or education policies for self/spouse/child, a maximum of RM3,000 relief is allowed .
For joint assessment, max deduction is RM3,000. [For separate assessment ,further deduction up to RM3,000 can be given for spouse]
9. Rebates
An individual who is resident in M’sia is given the following rebates for a Y/A, to be set off against tax payable where the chargeable income does not exceed RM 35,000
-
RM400 for an individual.
-
A further RM400 if he has a wife living with him & she is not separately assessed OR if he is separated / divorced AND maintaining a wife.
-
RM400 to a wife who is separately assessed, provided her chargeable income does not exceed RM35,000
PCB Calculator 2022 and Deduction for HRMS Payroll Malaysia
Follow the latest update of Income Tax YA 2021 for personal PCB Calculator Deductions here.
Learn more about iFLEXiHRMS Payroll System towards PCB Calculator 2022 Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s PCB Calculator relevant document such as EA form and employee’s payslip. It is a simple and easy payroll software system by allowing your company employee’s PCB Calculator in Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
PCB Calculation Formula
Here is a formula for calculating your PCB in any years. The formula is fixed but the categories of deduction are subject to change each year (refer to above YA 2021).
While the formula is complicated it can be simplified as follows:
1. Annual taxable income = Previous months taxable income + (Recurring current month taxable income + Non-recurring current month taxable income) + Recurring current month taxable income * Number of months remaining in the year
2. Annual taxable income – Deductions = Annual chargeable income
3. The annual tax is then calculated based on the annual chargeable income (click here for tax rates)
4. PCB Calculation = (annual tax – PCB already paid)/Number of months remaining
Here is a formula for calculating your PCB in any years. The formula is fixed but the categories of deduction are subject to change each year (refer to above YA 2021).
While the formula is complicated it can be simplified as follows:
1. Annual taxable income = Previous months taxable income + (Recurring current month taxable income + Non-recurring current month taxable income) + Recurring current month taxable income * Number of months remaining in the year
2. Annual taxable income – Deductions = Annual chargeable income
3. The annual tax is then calculated based on the annual chargeable income (click here for tax rates)
4. PCB Calculation = (annual tax – PCB already paid)/Number of months remaining
PCB Calculation Format in Malaysia
| Total Income | XXX |
| Deduction | |
| Personal Reliefs | (XXX) |
| Chargeable Income | (XXX) |
| Tax payable | XXX |
| Less Rebate (If any) | (XXX) |
| Income Tax Payable | XXX |
Mainly of the Malaysian use the above table as references for calculating their PCB calculator. In you are ensure about your Personal PCB Calculator, please check with LHDN website for more information.
e-PCB calculator for HRMS Payroll Malaysia
PCB Calculator is a part of HRMS Payroll Process in Malaysia, range of Malaysia income tax rate fall between 0% to 30% vary according to salary gain.
For Malaysia’s resident, we are able to perform income tax deduction by lower our taxes with some of the ‘spending’ and under certain ‘circumstances’, for example purchasing children needs, person with disability, insurance, medical expense, personal lifestyle and more.
A non-resident individual subject to be taxed at a flat rate of 30% on all taxable income.
How to submit PCB Calculator 2022, e-filling or Income Tax in Malaysia?
You have to get to know that which form you are going to fill, also each type of forms validity (deadline) are different to each other’s. So what you should know about income tax form?
- Resident individuals who do not carry on a business will submit the BE form.
- Resident individuals who do carry on a business will submit the B form
- Non-Resident individuals will submit the M form.
Deadline submission for each income tax form
- BE form, for those resident individual who don’t carry on a business shall submit their form manual filling or e-filling before 30 April and 15 May respectively.
- B from, for those resident individual who carry a business shall submit their form manual filling or e-filling before 30 June and 15 July respectively.
Learn more of the different types of income tax form from the LHDN website here.
How to get your income tax number?
Income tax number can be easily register as a taxpayer via e-Daftar.
How to get your income tax PIN number?
Income tax PIN number can be easily get while visiting LHDN branch or through online (browsing LHDN website). This one-time PIN number is to allow you by first time registering and setup your LHDN account, after that you may use your own password instead of this PIN number.
FINDING A QUICKER SOLUTION FOR SOLVING OR CALCULATING YOUR INCOME TAX?
iFlexiHRMS is a HR solution that allow you to one click generate each employee EA form for tax submission. Learn more about iFlexiHRMS now!
Learn more about iFLEXiHRMS Payroll System towards PCB Calculator 2022 Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee’s PCB Calculator relevant document such as EA form and employee’s payslip. It is a simple and easy payroll software system by allowing your company employee’s PCB Calculator in Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
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