ringgitplus2026-05-0610 min read
PCB vs Income Tax: What's The Difference?
Check out the link for the RInggitPlus + ThinkTx curated Article by Our Tax Professionals.
- This article clarifies the difference between Potongan Cukai Bulanan (PCB) and actual income tax in Malaysia. PCB is a provisional monthly tax deduction estimated and paid to the Inland Revenue Board (LHDN) by your employer. In contrast, income tax is your final, actual annual tax liability based on your total chargeable income.
- The guide emphasizes that having PCB deducted does not excuse you from filing an annual tax return. Filing is crucial because it reconciles your estimated monthly payments against your actual tax owed, allowing you to claim tax reliefs and potentially secure a refund for overpaid taxes.
Curated by Pugaleshwaran Raja Kumaran, Executive Director, Tax at ThinkTx Consultants Sdn Bhd.