Which payment is subjected to PCB (MTD)

PCB is designed to avoid large amounts of tax payments at the end of the year, and can also save you from having to file for a tax report if several conditions are met.


Type of Remuneration Subject to PCB

- Salary / Wages
- Overtime Payment
- Commission
- Tips
- Allowance
- Bonus / Incentive
- Director fees
- Perquisite
- Employee's share option scheme (ESOS)
- Tax borne by the employer
- Gratuity
- Compensation for loss of employment
- Any other payment in addition to normal remuneration for the current month


Type of Remuneration NOT Subject for PCB

- Deduction for Zakat
- Benefits in Kind (BIK)Value of Living Accommodation (VOLA)


1. BIK and VOLA are part of remuneration which is not subject to MTD. However, employees can choose to include  BIK and VOLA as part of their MTD-eligible compensation by completing the prescribed form and submitting it to their employer. If the employer agrees, BIK and VOLA will be subject to MTD.

2. Should you require further clarifications, please contact IRB Malaysia Contact Management Centre at 1-300-88-5436, enquiry at any LHDN Office.