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How to Use the LHDN Calculator to Accurately Calculate PCB

Quick and Easy Guide to Calculate Malaysian Employee Tax Using the Official LHDN Calculator. Learn how to accurately calculate the monthly tax for employees in Malaysia, whether they are newly hired or previously employed.

Audience & Scope

Audience: HR Admin

Module: Payroll

Country: Malaysia

Pre-requisites: Access to HR Lounge Payroll module

 

The brioHR payroll system complies with LHDN tax specification files, and the monthly tax deduction (MTD/PCB) is automatically calculated based on these specifications.

If you would like to understand how the system calculates an employee's tax and see the calculation breakdown, you can use the LHDN calculator.

 

Accessing the Tax Calculation Tool

1. Access the LHDN Tax Calculation Tool:



2. Choose the Relevant Options:

  • Select the Year accordingly
  • Choose from the 2 options of calculators:- 
  • PREVIOUSLY EMPLOYED IN CURRENT YEAR:
    • For existing employees or newly hired employees who were employed with another company anytime between January and the current month.
    • Note: For new hired employees, the accumulated remuneration (including from previous employer) is their TP3 form amount.
  • PREVIOUSLY NOT EMPLOYED IN CURRENT YEAR:
    • For newly hired employees who have not been employed in the current year (and without TP3 form amount)

 

Guide for PREVIOUSLY EMPLOYED IN CURRENT YEAR

Step 1:
Select the current month under the "Month" dropdown.

Step 2:
Fill in the employee’s tax information such as:

  • Status
  • Marital Status
  • Is the employee a disabled individual
  • Is the spouse of the employee is disabled
  • Number of children claimed by the employee

 

Step 3:
Fill in the section:

"ACCUMULATED REMUNERATION/MTD/REBATE/DEDUCTION UNTIL BEFORE CURRENT MONTH FOR CURRENT YEAR (INCLUDING FROM PREVIOUS EMPLOYER)" with the total amounts for earnings, rebates, and deductions from January to the last month.

  • Total taxable income under 'Accumulated remuneration/BIK/VOLA
  • Accumulated EPF and other Approved Funds - maximum RM 4000 (if an employee's employee EPF contribution exceeds RM 4000, just input RM 4000)
  • Accumulated MTD/PCB paid
  • Accumulated zakat/fitrah paid (if any)
  • Accumulated levy paid (if any)
  • Other accumulated deductions (description of TP1 Form Note 2024) (if any)

TIP:

The Accumulated Remuneration amount filled in this section should include all earnings this employee has received from the start of the year until current date. This figure should capture all income received within the current year only. 


Step 4:
Enter the current month's details at 'CURRENT MONTH'S REMUNERATION' section:  

    • Salary and Fixed Remunerations (total income of taxable fixed/normal remunerations) under CURRENT MONTH'S REMUNERATION
    • Current month's EPF under CURRENT MONTH'S REMUNERATION
    • Additional Remunerations (total income of taxable additional remunerations) under CURRENT MONTH'S ADDITIONAL REMUNERATION
    • Deductions (description of TP1 Form Note 2024) under CURRENT MONTH'S DEDUCTION.
    • Rebates (e.g., Zakat/Fitrah) under CURRENT MONTH'S REBATE INFORMATION.


     

    NOTE:

    Current Months Remuneration amounts includes Fixed remuneration payments which are regular payments an employee receives each month, such as their basic salary and fixed allowances. 

    Additional Remuneration for the current month amounts includes Additional remuneration which are the extra pay given on top of an employee's regular salary; such as bonuses, commissions, or overtime. 

    It is important to understand the type of payitem when adding into this calculator, therefore, be sure to check the payitem configuration within HR Lounge > Payroll > Settings > Payroll Items > Search for the respective payitem > Check the configuration assigned. 

    This will make it easy to understand the payitem placement within the calculator. 


    Step 5:
    Click on Calculate. The site will generate the tax payable for the current month and the total MTD per year.

    It will show the MTD amount for every month until December if there is no changes on remuneration, deduction and rebate!



    Step 6:
    Click on Print to view the tax breakdown and calculation.

    Step 7:
    If needed, click on Update to adjust the current month's data.

    Step 8:
    To estimate tax for the upcoming month, click on Calculate Next Month.

     

    Guide for PREVIOUSLY NOT EMPLOYED IN CURRENT YEAR

    Step 1:
    Select the current month under the "Month" dropdown.

    Step 2:
    Fill in the employee’s tax information such as "Status", "Marital Status", etc.

    Step 3:

    Enter the current month's details at 'CURRENT MONTH'S REMUNERATION' section:  

      • Salary and Fixed Remunerations (total income of taxable fixed/normal remunerations) under CURRENT MONTH'S REMUNERATION
      • Current month's EPF under CURRENT MONTH'S REMUNERATION
      • Additional Remunerations (total income of taxable additional remunerations) under CURRENT MONTH'S ADDITIONAL REMUNERATION
      • Deductions (from TP1 Form) under CURRENT MONTH'S DEDUCTION.
      • Rebates (e.g., Zakat/Fitrah) under CURRENT MONTH'S REBATE INFORMATION.

      Step 4:
      Click on Calculate. The site will generate the tax payable for the current month.

      Step 5:
      Click on Print to view the tax breakdown and calculation.

      Step 6:
      Click on Update to adjust the current month's data if needed.

      Step 7:
      Click on Calculate Next Month to estimate tax for the next month.

      NOTE:

      For more detailed tax calculations, you are encouraged to start from January if you want an overview of the monthly payable tax.

      If the calculated amount from the LHDN PCB Calculator differs from the amount in BrioHR, download the PDF generated by the calculator and share it with our support team for verification. 

       

      Frequently Asked Questions

      Q1: Why did the PCB amount change this month?

      A: PCB amounts can change from month to month because the calculation is based on the employee’s estimated annual taxable income, which can change as payroll amounts change throughout the year. 

      Q2: An employee has no tax number — what do I do for PCB?

      A: Register the employee with LHDN (e-Daftar) first, then update the employee's tax number at the Employee Profile, under the Payroll section. 

       

      Last Updated

      By: Arveena