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.


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.

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