MONEY MASTER

We are now in another new year, or financial year and many of us are just 2-3 months for tax submission. However, there are just still so many of us who are questioning how our scheduled tax deduction (STD) or PCB is calculated as most of the time we are getting different deduction. It is not a surprise as majority working class are having fixed monthly salary, but at the same time on and off we are getting bonuses from our employers. These bonuses are the reason why we are getting different scheduled tax deduction on certain month when we have bonus. I posted twice on how these are calculated on Calculating PCB or  Schedular Tax Deduction (STD) for Salary and Bonus and How to Calculate PCB or Scheduled Tax Deduction (STD) for Salary and Bonus Anyway, since I'm still getting emails on the calculation, I will use the example from the email so that the reader can understand it based on his or her salary and bonuses. Assuming A is getting a salary of RM3,000 and have RM24 d...

Recently I have got a reader asking me on how to calculate PCB given the certain amount that he or she told me from my How To Calculate PCB or Schedular Tax Deduction (STD) for Salary and Bonus post that I have written in 2010. So, I guess it is time to refresh the blog post with the example that he or she gave me. Ok. Here we go. We are about to calculate the PCB given the salary is RM2,000 and with allowance of RM300 and the bonus given is 2 months. So we have the total bonus of RM4,000. Again, I will be using the PCB rate for single. The calculation is as follows:- Salary = RM2,000 EPF deduction = RM220 Salary for PCB calculation = Gross salary - EPF deduction = RM2,000 - RM220 = RM1,780 (this is also your net_salary when you want to calculate the PCB rate for bonus) (Again we need to take note: The maximum total EPF deduction allowed for PCB or STD calculation is RM500 (RM6,000 / 12 = RM500). If your salary is RM5,000 and above, just put RM500 under EPF deduction ) According to t...

While watching World Cup and with the pay day coming in within a week, I'm thinking maybe I should do some write up on how the PCB or STD (Scheduled Tax Deduction) is calculated monthly as this has been a question mark for me whenever I am planning the budget for the subsequent month. Most people will have doubt on how the PCB or STD is calculated especially during the bonus month. In fact, most of us will be anxiously to know the tax deduction to have proper view how much we can spend during that month. So, it is always best for us to know how the PCB are calculated so that we can plan ahead. Here is how our STD or PCB are calculated. Assuming person E is single and is drawing monthly salary of RM3,000 and contributing 11% from his monthly salary to EPF. Salary = RM3,000 EPF deduction = RM330 (Note: The maximum total EPF deduction allowed for PCB or STD calculation is RM500 (RM6,000 / 12 = RM500)) Salary for PCB calculation = Gross salary - EPF deduction = RM3,000 - RM330 = RM...

When you look at your payslip every month since the second half last year, do you realized that the Scheduled Tax Deduction, STD (or Potongan Cukai Bulanan, PCB) is higher compare to previously? I, myself realized that and after doing some research I realized that the Inland Revenue Board (IRB) of Malaysia (or Lembaga Hasil Dalam Negeri, LHDN) has come out with higher rate back then. This year again, we will have new PCB rate and the rate is lower compares to the 2009 PCB rate. Click the links below to get the rate for both PCB 2009 and PCB 2010 and do some comparison. Click here to download the PCB 2009 rate Click here to download the PCB 2010 rate I might be posting on how to calculate the PCB or STD in the future.