Potongan Cukai Bulanan (PCB) is a series of monthly deductions that go towards paying the taxes that are in relation to the employment income and to help taxpayers who were struggling to pay a lump sum tax at the end of the year.
Here is the list of those pay items:
Salary
Commission
Tips
Allowance
OT payment
Bonus
Incentive
Director fees
Perquisite
Share Option Sale (ESOP)
Tax borne by the employer
Gratuity
Salary-in-lieu
and any other payment in addition to normal remuneration for the current month.
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Here is the list of those pay items that are not subjected to PCB/MTD:-
Zakat Deduction
Benefits in Kind (BIK)
Value of Living Accommodation (VOLA)
NOTE: BIK and VOLA are part of remuneration which are not subjected to PCB.
However, employee may want to include both BIK and VOLA as part of his/her remuneration to be subjected to PCB by completing a prescribed form and thereafter, submit to employer.
If employer agrees, BIK and VOLA will be subjected to PCB.