PCB refers to "Potongan Cukai Bulanan" which is "Monthly Tax Deduction" (MTD) in Malay.
It is monthly deductions that contributes towards payment of employee income taxes at the end of the financial year.
How Do PCB/MTD Deductions Work?
These monthly deductions are directly deducted from an employee's salary (retained by the employer) and paid over to the Inland Revenue Board (LHDN) with each payroll month.
This system is designed to avoid the issues that come with requiring payment of a large sum at the end of the year from employees.
Talenox automatically helps you with calculating your PCB/MTD amounts for your employees in payroll based on employee monthly income.
For a more in-depth dive into PCB calculations, you can find more information on the Vox of Talenox's PCB article.