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What is PCB (MTD)?
Overview PCB stands for “Potongan Cukai Bulanan” which is Malay for “Monthly Tax Deduction”. It is a series of monthly deductions that go towards payment of your taxes in relation to your employment income. These monthly deductions are retained by your employer and paid over to the Inland Revenue Board (LHDN). This mechanism is designed to […]
What tax deductions can I claim for my children?
Certain tax deductions are available for children under the charge of the employee. The deduction reduces the employee’s chargeable income and therefore their PCB. For tax purposes, a “child” is an “unmarried dependent legitimate child or stepchild or adopted child”. Please note that no deduction can be claimed if the child is in receipt of […]
Which benefits-in-kind are tax exempt?
Benefits-in-kind are benefits provided by or on behalf of your employer that cannot be converted into money. These benefits are normally part of your taxable income, except for tax exempt benefits which will not be part of your taxable income. Tax exemption applies to the benefits-in-kind listed below, unless you have control over your employer […]
What are the restrictions for claiming tax exemptions?
If an employee has control over their employer then ALL perquisites, allowances and benefits-in-kind received by that employee will be considered part of their taxable income. No tax exemptions will apply. For example an employee who has control over their employer cannot claim the RM6,000 annual tax exemption for travel/petrol allowance for official duties. Definitions […]
Do I need to file a tax return?
Income Threshold If you earn (after EPF deduction) a minimum of RM 34,000 annually, then you must file a tax return, unless you are exempted from doing so under the conditions set out below. PCB as Final Tax If the following conditions are satisfied, you can choose not to file a tax return as the PCB […]
Which employees can benefit from special tax incentives?
Employees who are given special tax incentives: Iskandar Knowledge Worker The Iskandar knowledge worker program is designed to encourage development in the Iskandar region in Johor. An employee under the Iskandar knowledge worker program will be taxed at a flat rate of 15%. Qualification To qualify for the knowledge worker program an employee needs at least […]
Which perquisites are tax exempt?
You are entitled to claim tax exemptions for the perquisites below, unless you have control over your employer. Benefit Details Childcare allowance in respect of children up to 12 years of age Tax exempt up to RM3,000 per year. Includes payment by the employer directly to the childcare provider. Parking rate or parking allowance Tax exempt […]
How does an employee get their income tax number?
Previously employed If you were previously employed, you may already have a tax number. You can check via https://mytax.hasil.gov.my/ under e-Daftar, fill in their details, and click Search. Not registered If you do not have an income tax number yet, please register for one either by Filling in the Online (e-Daftar) which is accessible from […]
How do I submit form E?
Every employer, as well as every company regardless of whether they have employees or not, must submit form E to LHDN. Failure to do so will result in LHDN taking action against the company’s directors. Form E should be submitted by all companies and employers by 30 April. For the filing to be complete, you […]
What tax deductions and rebates can be claimed in the year 2023?
Tax Deductions The following compulsory and optional tax deductions in the year 2023 are deducted from your annual taxable income to arrive at your annual chargeable income, based on which the amount of tax payable will be calculated. Employees can claim optional deductions by submitting form TP1 to their employer. The employer can then enter the tax […]
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