Calculation for PCB 2013 income tax deduction

The Potongan Cukai Bulanan (PCB, a.k.a. Scheduled Monthly Tax Deduction) for year 2013 need to take into consideration of the following:

• The individual income tax rate be reduced by 1 percentage point for each grouped annual income tax exceeding RM2,500 to RM50,000 with effective year assessment 2013.
• The existing deduction on the children’s higher education amounting to RM4,000 per person be increased to RM6,000, commencing from year of assessment 2013.
• Current relief of RM3,000 for savings in the National Education Savings Scheme (SSPN) is increased to RM6,000. The deduction is effective from year of assessment 2012 until year of assessment 2017.
• With effective from year 2013, the subscription fee of Internet broadband is no longer a deduction.

While a new Jadual PCB 2013 schedule table is expected, it is not found in the official website of the Inland Revenue Board of Malaysia (a.k.a. Lembaga Hasil Dalam Negeri, LHDN) yet.

However, there is a document called Specification For Monthly Tax Deduction (MTD) Calculations Using Computerised Calculation Method For MTD 2013 or  Spesifikasi Pengiraan PCB Menggunakan Kaedah Pengiraan Berkomputer Untuk PCB 2013 is available for download from the website. The document provides detail explanation on the amendment to calculate PCB 2013.

Click here to download Specification For Monthly Tax Deduction (MTD) Calculations Using Computerised Calculation Method For MTD 2013.

Besides, there is also an online PCB calculator available in LHDN website for calculation of PCB 2011, 2012 and 2013.