Personal Finance Term
PCB / MTD
Monthly Tax Deduction
Income tax that your employer deducts from your salary each month and pays to LHDN on your behalf. It spreads your tax across the year so you are not hit with one large bill at filing time.
PCB (Potongan Cukai Bulanan) is calculated from your monthly remuneration, your declared reliefs, and your status (such as marital status and number of children) using LHDN's schedule, then withheld and remitted by your employer. Because it is an estimate based on the information you give your employer, the total deducted over the year may be more or less than your actual tax once all reliefs are tallied at filing.
If too much was deducted, you get a refund after filing; if too little, you pay the balance. Employees whose only income is employment and whose PCB has been correctly deducted may qualify to have PCB treated as their final tax, but most people should still file to claim reliefs and recover any over-deduction. Keep your payslips — they show PCB withheld and feed straight into your annual e-Filing.