What is Monthly Tax Deduction (MTD)?

Monthly Tax Deduction (MTD), known in Malay as Potongan Cukai Bulanan (PCB), is a mechanism where employers deduct income tax from employees’ salaries every month.

This system is designed to prevent employees from facing cash flow issues when making a lump-sum tax payment upon final tax assessment.

Employees must provide their personal tax information to their employers using the TP1 Form (Personal Relief and Rebate Declaration Form). The amount of MTD (PCB) deducted is calculated after considering all eligible tax reliefs, tax rebates, and zakat (Islamic donations).

何谓每月税务预扣 (MTD)?  

每月税务预扣 (MTD), 马来语被称为Potongan Cukai Bulanan (PCB)，是一项雇主每月从雇员的薪金中扣除税务的机制。这项机制是为了避免雇员在确定最终税务时临时需要准备一笔大笔的现金缴付所得税所遇到的现金流问题。

雇员需要以TP1表格（个人减免与回扣声明表格）提供他们个人的税务资料于雇主。因此，这项每月税务预扣(PCB)的数额会在扣除所有雇员有的税务减免，税务回扣及回教捐款后获得。