How is income tax calculated in Malaysia?

Income tax in Malaysia is calculated using progressive tax rates ranging from 0% to 30%. Your chargeable income is determined by subtracting tax reliefs and deductions from your total annual income.

What is PCB in Malaysia?

PCB (Potongan Cukai Bulanan) is Malaysia's Monthly Tax Deduction scheme where employers deduct income tax from employees' salaries monthly, reducing the need for large lump sum payments during tax filing.

What are the tax reliefs available in Malaysia for 2025?

Key tax reliefs for 2025 include individual relief (RM9,000), EPF contributions (up to RM4,000), life insurance (RM3,000), medical insurance (RM4,000), and various lifestyle reliefs.

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Malaysia Income Tax Calculator

Kalkulator Cukai Pendapatan Malaysia

Monthly Gross Salary (RM)

+Add Bonus & Side Income

Enter your income above to see the estimated monthly breakdown.

Annual Tax Reliefs (for Year-End Filing)

These reliefs are for your final tax return. They are not included in the monthly PCB estimation above.

SOCSO & EIS contributions

Disabled individual (self)

Disabled Husband/Wife

Disabled Child

Medical expenses for parents

Basic supporting equipment

Education fees (Self)

Medical expenses for serious diseases

Lifestyle

Lifestyle - additional

Child Care Fees

Breastfeeding equipment

Child relief

Life insurance

Private Retirement Scheme (PRS) and Deferred Annuity

Education and medical insurance

Spouse / former wife / former husband

EV charging facilities & food waste composting machine

Housing loan interest (property up to RM500,000)

Housing loan interest (property RM500,001 to RM750,000)

Total Annual Reliefs Selected350.00

Other Deductions

Custom Deduction

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Complete Guide to Malaysia Income Tax & PCB Panduan Lengkap Cukai Pendapatan & PCB Malaysia

In Malaysia, individual income tax is calculated on a progressive scale ranging from 0% to 30% depending on your net chargeable income. The tax system is governed by the **Inland Revenue Board of Malaysia (LHDN / Lembaga Hasil Dalam Negeri)**. Whether you are an employed professional, a business owner, or a freelancer, understanding how tax brackets, monthly deductions, and annual tax reliefs affect your take-home pay is vital.

1. What is PCB (Potongan Cukai Bulanan)? / Apa itu PCB?

PCB is a monthly deduction scheme where employers deduct tax directly from employees' monthly salaries. This deduction is sent directly to LHDN to prevent taxpayers from facing a massive lump-sum payment at the end of the assessment year. Our calculator estimates both your monthly PCB and your final annual tax liabilities.

2. Chargeable Income & Tax Reliefs / Pendapatan Bercukai & Pelepasan Cukai

Your taxable amount is not based on your gross salary. Instead, it is calculated based on your Chargeable Income:

Chargeable Income = Gross Income - Exemptions - Tax Reliefs - Custom Deductions

Claiming eligible reliefs (such as individual relief, medical coverage, lifestyle expenses, and EPF contributions) directly reduces your chargeable income, moving you into lower tax brackets and maximizing your **Tax Refund (Sumbangan Balik)**.

3. Key Filing Deadlines / Tarikh Penting LHDN

The assessment year (YA) runs from January 1 to December 31. Individual filing deadlines typically occur in the subsequent year:

Form BE (Resident individuals without business income): April 30 (Extended to May 15 for e-Filing)
Form B (Resident individuals with business income): June 30 (Extended to July 15 for e-Filing)