There are two methods to calculate tax in Malaysia. Fret not! This guide will guide you through both methods:

Computerized calculation

Computerized calculation will be based on the LHDN PCB calculator.

1) Previously NOT employed in current year

Select Previously NOT employed in current year for employee first month income of the year.

January payslip details

Taxable income: 5500.00

EPF: 605.00

Marital status: Married and spouse is working

Children: Under 18 or In Education (100%)

In PCB calculator, you may key in the following details:

Once done, click CALCULATE.

2) Previously employed in current year

Select Previously employed in current year for employee with accumulated income prior to the current payslip of the same year.

March payslip

Year to date taxable income from January to February: 11000.00

Total EPF from January to February: 1210.00

Total MTD from January to February: 321.70

Note: This data can be found in the staff tax details. Kindly refer to this guide on how to access it.

Tax Details: Employee MTD and Income Info (in MYR)

Tax Details: Employee Deduction Info (in MYR)

Copy the accumulated income above and input it under ACCUMULATED REMUNERATION section.

Current month taxable income: 5500.00

Current month EPF: 605.00

Marital status: Married and spouse is working

Children: Under 18 or In Education (100%)

Copy the current month income above and input under CURRENT MONTH'S REMUNERATION.

Once done, click CALCULATE.

Non-computerized calculation

Non-computerized calculation will be based on the PCB table. This calculation method does not require employee previous income, it will only calculate based on current month payroll.

Current month taxable income: 5500.00

Current month EPF: 605.00 (maximum 333.333333 per month)

Marital status: Married and spouse is working

Children: Under 18 or In Education (100%)

Based on the employee status above, the employee is under category 2, KA1.

The calculation is:

5500.00 - 333.333333 = 5166.67

In the table, the staff PCB will be 162.15.

Related articles:

[MY] What is the difference between computerized and non-computerized calculation method?

[MY] Normal Remuneration vs. Additional Remuneration

[MY] How to set Monthly Tax Deduction calculation method?

[MY-Help] How do I key in my backdated payroll?

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