Ensuring the accurate and timely submission of Potongan Cukai Bulanan (PCB) in Malaysia is not only a regulatory requirement but also a crucial aspect of effective payroll management. In today’s digital age, utilizing advanced payroll software like AutoCount Cloud Payroll can significantly streamline the PCB submission process, offering numerous benefits for employers.
PCB, or Potongan Cukai Bulanan, is a monthly tax deduction mechanism in Malaysia. It entails deducting a certain amount from an employee’s monthly salary to cover their income tax payment to the Inland Revenue Board (LHDN). This deduction aims to prevent individuals from facing a substantial tax burden at the end of the year by spreading the tax payment throughout the year.
Key points about PCB in Malaysia include:
- PCB is deducted by the employer from the employee’s salary each month and remitted to LHDN.
- Individuals with annual employment income exceeding RM34,000 after EPF deductions need to register for an income tax file and may be subject to PCB deductions.
- The minimum salary for PCB deduction can be calculated using specific methods or guidelines provided by LHDN.
- The PCB deduction rate (also called tax relief) varies based on factors like marital status, number of children, EPF contribution, and other tax deductions.
Employers can utilize payroll software like AutoCount Payroll to automate accurate PCB calculations, ensure compliance with LHDN rules, and facilitate e-payment submissions for PCB. It’s crucial for employers to remit PCB payments on time to avoid penalties, with deadlines typically falling on the 15th day of the following month.
The process for submitting PCB online in Malaysia involves the following steps:
- Choose Internet Banking: Several banks in Malaysia offer payroll bulk payment services. Upload the PCB bank file to your bank’s website for payment. In Malaysia, LHDN-approved software like AutoCount Cloud Payroll should be used to generate the PCB bank file containing details of each employee’s contributions.
- Utilize LHDN Online Facilities: Employers can use LHDN’s e-PCB, e-CP39, or e-Data PCB online portals for manual submission of monthly tax deductions and one-time submissions.
The differences between LHDN’s e-PCB, e-CP39, and e-Data PCB online portals in Malaysia are as follows:
- e-PCB: Applicable for employees without a computerized payroll system. Users must register to store employee information and perform MTD calculations. Allows for manual submission of monthly tax deductions. Previous submissions and accumulated income and deduction amounts are recorded.
- e-CP39: Intended for employers without a computerized payroll system. Provides the option to log in as a registered or unregistered user. Allows for the submission of employees’ Monthly Tax Deduction (MTD) data and payments online. Allows resubmission of PCB in case of wrong submission.
- e-Data PCB: Designed for employers with a computerized payroll system. Enables employers to upload CP39 text files online without manual data entry. Facilitates the submission of monthly tax deductions via file upload.
Each portal caters to different employer needs based on their existing payroll systems and preferences. Employers can choose the portal that aligns best with their payroll processes to efficiently manage and submit their PCB payments in Malaysia. In summary, while the e-PCB & e-CP39 portal is tailored for employers without a computerized payroll system, the e-Data PCB portal is designed for those with a computerized payroll system, offering specific functionalities to meet the needs of different types of employers in Malaysia.
Note: Employers with a computerized payroll system can use the e-Data PCB portal to validate and upload CP39 text files, ensuring compliance with LHDN specifications. Payments can be made online or at bank payment counters.
Step by Step Submitting PCB Online with AutoCount Cloud Payroll
To submit PCB using AutoCount Cloud Payroll, follow these step-by-step instructions:
1. Generate the PCB Text File:
- Process your monthly payroll in AutoCount Cloud Payroll.
- Download the CP39 text file by navigating to Payroll > Electronic Payment > LHDN CP39 > Download as TXT.
2. Upload the Text File to e-Data PCB:
- Log in to the e-Data PCB portal at https://eapps.hasil.gov.my/.
- Go to “Browse” and upload the CP39 text file.
3. List of Uploaded Files.
- Once uploaded, the file will appear on the List of Uploaded Files.
- Click “Hantar” to proceed.
4.Confirmation and Payment:
After status update to “LULUS” can procced with payment.
- Review all details on the confirmation page and proceed with FPX payment.
- Click “BUTTON” to download FPX Submission user guide.
By following these steps, you can efficiently generate an e-Data PCB file using AutoCount Cloud Payroll and submit it online through the e-Data PCB portal in compliance with LHDN tax regulations in Malaysia.
Frequently Asked Questions
1. What is the deadline for submitting PCB in Malaysia ?
The deadline for submitting PCB in Malaysia is on or before the 15th day of the following month. It’s essential to meet this deadline to avoid penalties and ensure compliance with tax regulations set by the Inland Revenue Board of Malaysia (LHDN).
2. What is the penalty for late submission of PCB in Malaysia ?
The penalty for late submission of PCB in Malaysia can result in a minimum fine of RM200 and up to RM20,000, or imprisonment for up to 6 months, or both. It’s crucial for employers to ensure timely submission to avoid such consequences and comply with tax regulations.
3. What is the supported bank for Online Submission PCB ?
Supported Banks for Online Payment include AmBank, Bank Islam, CIMB Bank, Hong Leong Bank, Maybank2e/Maybank2U, Public Bank, RHB Bank. These banks support online payment through FPX, facilitating convenient electronic payments for PCB.
4. What is the difference between PCB and MTD ?
In Malaysia, “PCB” (Potongan Cukai Bulanan) and “MTD” (Monthly Tax Deduction) essentially refer to the same process of deducting income tax from employees’ salaries monthly. PCB is the term commonly used in Malay-speaking contexts, while MTD is used in English contexts. Both terms denote the monthly deduction of income tax from an employee’s salary.
5. Is AutoCount Cloud Payroll compliant with LHDN tax regulations in Malaysia ?
Yes, AutoCount Cloud Payroll is fully compliant with LHDN tax regulations in Malaysia. The software ensures worry-free calculation and is LHDN-approved, meeting all regulatory requirements such as LHDN, KWSP, SOCSO, and EIS.
6. How does AutoCount Cloud Payroll help users stay compliant with tax Regulations?
AutoCount Cloud Payroll automates government requirement updates, making it convenient for users to stay compliant with tax regulations. It offers features facilitating compliance with LHDN regulations, such as a PCB Calculator with Pre-filled Data capabilities for verification in LHDN calculator.
7. What are the key features of AutoCount Cloud Payroll for compliance with LHDN Regulations?
AutoCount Cloud Payroll offers support for web-based submission of Income Tax, EPF, and SOCSO reports. Additionally, it integrates with online banking facilities of major banks for electronic payment, ensuring seamless compliance with LHDN requirements.
8. How does AutoCount Cloud Payroll benefit Employers?
Employers benefit from a straightforward solution to comply with online submissions for monthly tax deductions and e-payments to LHDN. This ensures accurate and efficient payroll processing while meeting regulatory requirements, providing peace of mind to employers.
