MY Pcb

Section 1 -- Quick Reference

Quick Reference

Field	Value
Country	Malaysia
System	PCB (Potongan Cukai Bulanan) for employees; CP500 for self-employed
Currency	MYR (Malaysian Ringgit / RM)
Tax year	Calendar year (YA = Year of Assessment)
Primary legislation	Income Tax Act 1967, Sections 107-107B; Income Tax (Deduction from Remuneration) Rules 1994
Tax authority	LHDN (Lembaga Hasil Dalam Negeri)
Portal	MyTax (https://mytax.hasil.gov.my)
Validated by	Pending
Validation date	Pending
Skill version	1.0

System Overview

System Overview

System	Applies To	Frequency	Responsible Party
PCB (Potongan Cukai Bulanan)	Employees	Monthly	Employer deducts and remits
CP500	Self-employed, sole proprietors, partnerships, rental/investment income	Bimonthly (6 instalments/year)	Taxpayer pays directly

Section 2 -- PCB (Monthly Tax Deduction for Employees)

2.1 What Is PCB

PCB — PCB is the Malaysian PAYE (Pay As You Earn) system. Employers withhold income tax from employees' monthly remuneration and remit it to LHDN.

2.2 Employer Obligations

Employer Obligations

Obligation	Detail
Registration	Employer must register with LHDN as an employer
Calculation	Use LHDN's PCB Schedule or e-PCB Calculator
Deduction	Deduct PCB from employee's monthly salary
Remittance	Remit to LHDN by 15th of following month
Reporting	Submit Form CP39 with each remittance
Annual	Issue Form EA (statement of remuneration) to employees by end of February

2.3 PCB Calculation Factors

PCB Calculation Factors

Factor	Detail
Monthly remuneration	Salary, allowances, bonuses, commissions
Tax reliefs	Employee declares reliefs via Form TP1
EPF deduction	Reduces chargeable income
Number of children	Affects relief calculation
Marital status	Single / married / spouse with income

2.4 e-PCB

e-PCB

Item	Detail
Portal	https://e.hasil.gov.my/epay (or via MyTax)
Submission	Monthly CP39 electronic submission
Payment	Online banking, FPX, or manual payment at LHDN counter
Deadline	15th of the month following salary payment

Section 3 -- CP500 (Self-Employed Instalments)

3.1 What Is CP500

CP500 — CP500 is the instalment tax payment system for individuals with business or non-employment income. LHDN issues a CP500 notice specifying the amounts and due dates.

3.2 Who Receives CP500

Who Receives CP500

Category	Obligation
Sole proprietors (business income)	Mandatory
Partners in partnerships	Mandatory (based on share of partnership income)
Individuals with rental income	May receive CP500
Individuals with investment income	May receive CP500 if significant
First-year businesses	May not receive CP500 until first Form B is filed

3.3 Basis of CP500

LHDN calculates CP500 based on:

Basis of CP500

Basis	Detail
Prior year tax liability	LHDN uses the latest assessed or estimated tax from the prior Form B
Standard uplift	LHDN may increase by 5-10% to account for expected income growth
New businesses	Based on estimated income declared in Form B or registration

3.4 Payment Schedule

CP500 is payable in 6 bimonthly instalments:

Payment Schedule

Instalment	Month	Due Date
1st	March	15 March
2nd	May	15 May
3rd	July	15 July
4th	September	15 September
5th	November	15 November
6th	January (following year)	15 January

Due date rule — The due date is the 15th of the instalment month. If the 15th falls on a weekend or public holiday, the next business day applies.

3.5 Payment Methods

Payment Methods

Method	Detail
Online banking (FPX)	Via MyTax portal or ByrHASiL
Bank counter	Using CP500 payment slip with reference number
ATM / CDM	Selected banks
Direct debit	Can be arranged with LHDN

Section 4 -- Revising CP500

4.1 When to Revise

Business income significantly higher or lower than LHDN's estimate
Business started or ceased mid-year
Major change in expenses or deductions
Change in personal reliefs

4.2 How to Revise

How to Revise

Method	Detail
Form CP502	Application to revise CP500 instalments
Submission deadline	By 30 June of the YA (i.e., before the 4th instalment)
Portal	Submit via MyTax or LHDN branch
Effect	LHDN revises remaining instalments; amounts already paid are credited

4.3 Revision Rules

Revision Rules (Section 107B(3))

Rule	Detail
Underestimation penalty	If revised estimate is >30% below actual tax, a 10% penalty applies on the difference (Section 107B(3))
Cannot revise after 30 June	Remaining instalments must be paid as per last revision
Increase voluntarily	Taxpayer can always pay more than the CP500 amount

Section 5 -- Penalties

5.1 Late Payment

Late Payment (Section 107B(2))

Situation	Penalty
CP500 instalment not paid by due date	10% increase on the unpaid amount (Section 107B(2))
Persistent non-payment	LHDN may take enforcement action (garnishee, travel restriction)

5.2 Underestimation

Underestimation (Section 107B(3))

Situation	Penalty
Revised CP500 estimate is >30% below actual tax liability	10% penalty on the difference between actual and estimated tax (Section 107B(3))
No revision filed but significant underpayment	Penalty at assessment stage

5.3 Employer PCB Penalties

Employer PCB Penalties

Situation	Penalty
Failure to deduct PCB	Employer is personally liable for the amount
Late remittance	10% increase on late amount
Failure to furnish Form EA	Fine up to RM20,000 or imprisonment up to 6 months

Section 6 -- Worked Examples

Example 1 -- Sole Proprietor CP500

Situation: Graphic designer, YA 2024 tax liability was RM8,400. LHDN issues CP500 for YA 2025 based on this amount.

CP500 schedule: 6 × RM1,400 = RM8,400 total

15 Mar: RM1,400
15 May: RM1,400
15 Jul: RM1,400
15 Sep: RM1,400
15 Nov: RM1,400
15 Jan 2026: RM1,400

Actual YA 2025 tax liability: RM10,200. Balance of RM1,800 due upon filing Form B (30 June 2026).

Example 2 -- CP500 Revision

Situation: Consultant expects income to drop significantly. Revised estimate: RM4,500 tax for the year.

Action: Submits Form CP502 by 30 June 2025. Remaining 3 instalments reduced. Already paid RM4,200 (3 × RM1,400). New instalments: RM100 each for Jul, Sep, Nov.

Risk: If actual tax turns out to be RM7,000, difference from revised estimate (RM7,000 - RM4,500 = RM2,500) is >30% of actual (30% × RM7,000 = RM2,100). Since RM2,500 > RM2,100, a 10% penalty on RM2,500 = RM250 may apply.

Section 7 -- Interaction with Other Systems

Interaction with Other Systems

System	Interaction
Form B filing	CP500 paid is credited against final tax liability on Form B
EPF/SOCSO/EIS	See my-epf-socso skill; these are separate from income tax instalments
Section 108 (withholding)	Tax withheld by payer on certain payments is also credited against final tax

Section 8 -- Reference Material

Key Sections of ITA 1967

Key Sections of ITA 1967

Topic	Reference
Employer PCB	Section 107; Income Tax (Deduction from Remuneration) Rules 1994
CP500 instalments	Section 107B
Revision of estimate	Section 107B(3); Form CP502
Penalties	Sections 107B(2), 107B(3), 112

LHDN Resources

LHDN Resources

Resource	URL
MyTax portal	https://mytax.hasil.gov.my
PCB calculator	https://e.hasil.gov.my
CP500 payment	ByrHASiL via MyTax
Contact	03-8911 1000

Prohibitions

NEVER treat CP500 payments as deductible expenses -- they are credits against final tax
NEVER advise skipping CP500 payments -- 10% penalty applies immediately
NEVER revise CP500 below 70% of expected actual tax without warning about underestimation penalty
NEVER submit Form CP502 after 30 June of the assessment year
NEVER assume first-year businesses will automatically receive CP500 -- they may need to register
NEVER present calculations as definitive -- always label as estimated

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

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General reference only. This document does not constitute tax, legal, or financial advice. Verify figures against the cited primary sources or with a licensed professional before relying on them.

Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call get_skill with slug my-pcb on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/my-pcb. If neither is available, confirm every figure against the official source pages cited above before relying on it.

my-pcb

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