If you are an employee with taxable income, have you notice from your monthly payslip that the Potongan Cukai Bulanan (PCB, a.k.a. Scheduled Monthly Tax Deduction) rate starting from year 2009 is different than before?
Yes, with the reason "to estimate the tax deduction more accurately", the schedule of PCB deduction has been revised.
Here are some of the changes that I observed by comparing the old schedule (PCB 2004) with the new one (PCB 2009):
- Now, a single person with monthly remuneration of RM2,401 and above is estimated to be taxable and eligible for the PCB deduction scheme, whereas previously was RM2,551 and above.
- Now a married person with 2 kids and spouse not working, will enter the PCB scheme when the monthly remuneration reaches RM3,251 and above, whereas previously was RM3,401 and above.
- Now a married person with 2 kids and spouse also working, will enter the PCB scheme when the monthly remuneration reaches RM2,551 and above, whereas previously was RM2,701 and above.
- Generally, those with monthly remuneration below RM10,000 will have their PCB deducted above 20% more than the old scheme, while those with monthly remuneration above RM10,000 will have their PCB deducted slightly less than the old scheme.
For example, if you are an unmarried person who earns RM4,010 per month, your salary should be deducted RM145 for the PCB, but under the new 2009 scheme, you will be deducted RM180 instead.
However, this new PCB deduction rate should not affect your overall income tax for the year. If you are over deducted from the PCB, you can claim back the extra income tax paid; and if you are under deducted, you will have to pay for the difference before the deadline of 30 April next year.
Click here to download the new PCB 2009 schedule table.
Click here to download the previous PCB 2004 schedule table.