Quick answer: An employer registers an employer number with LHDN, deducts monthly tax (PCB or MTD) from each employee's pay using the PCB schedule or a computerised method, and remits it on or before the 15th day of the following month. The statement is submitted through e-PCB, e-Data PCB or e-CP39 on LHDN's portal, and payment can be made through FPX or bank transfer using the PCB/CP39 account number.
- Register an employer number with LHDN.
- Pay PCB by the 15th of the following month.
- Submit through e-PCB, e-Data PCB or e-CP39 only.
- Report a new employee within 30 days through e-CP22.
- Keep records for 7 years.
Monthly Cycle
Calculate PCB
Use the PCB schedule via e-CP39 or a computerised payroll calculation method.
Deduct from salary
Deduct the amount from each employee's monthly pay.
Submit the statement
Use e-PCB, e-Data PCB or e-CP39 on the LHDN portal. These are free.
Pay by the 15th
Pay on or before the 15th day of the following month.
Payment Methods
| Method | Notes |
|---|---|
| FPX | On the LHDN website after completing e-CP39, e-Data PCB or e-PCB |
| IBG at bank counter | Use the PCB/CP39 account number |
| IBG via internet banking | Use the PCB/CP39 account number |
| Cash | LHDN lists CIMB counters and POS Malaysia. Bank availability varies, so check LHDN's list |
Employee Events
| Event | Form and timing |
|---|---|
| New employee | CP22 within 30 days after employment starts, through e-CP22 on MyTax (from 1 September 2024) |
| Employee leaving Malaysia for more than 3 months | CP21, at least 30 days before departure |
| Private sector cessation or death | CP22A, at least 30 days before cessation or within 30 days after being informed of a death |
| Money payable to the employee | Withhold for 90 days or until a tax clearance letter is received, in cessation, death or departure cases |
What the Sources Do Not State
The LHDN employer pages reviewed do not state a penalty amount for late PCB payment. They refer to the separate offences and penalties page, which lists general offences under the Income Tax Act. Confirm the current position with LHDN if you have paid late.
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Mistakes
Paying PCB with salary month instead of the following month
The deadline is the 15th of the next month.
Skipping CP22 for a new hire
It is due within 30 days of the start date.
Releasing final pay to a leaver without checking
LHDN allows withholding for 90 days in specified cases.
How We Help
What we handle for you
Accounts and filings
- Keep your accounting records and prepare year-end financial statements.
- Help with the tax and statutory filings that follow from your accounts.
Payroll
- Run payroll and prepare the monthly and yearly payroll filings.
Why companies choose us
Accounting, payroll and company set-up under one roof
- We also handle company incorporation and expatriate pass applications, so your accounts, payroll and structure stay aligned.
A Kuala Lumpur firm
- Neutral Consulting PLT is led by a Managing Partner who is a member of the Malaysian Institute of Accountants.
Frequently Asked Questions
Quick answers.
What is PCB?
Potongan Cukai Bulanan, also called MTD, the monthly income tax an employer deducts from an employee's pay.
Who must register as an employer with LHDN?
An employer who pays employees registers an employer number with LHDN.
When is PCB due?
On or before the 15th day of the following month.
How do I calculate PCB?
Use the PCB schedule through e-CP39 or a computerised payroll calculation method.
How do I submit the statement?
Through e-PCB, e-Data PCB or e-CP39 on LHDN's portal.
Is submission free?
LHDN says these applications are free on its portal.
How do I pay?
FPX, IBG at a counter or via internet banking, using the PCB/CP39 account number.
What is CP22?
The notification of a new employee, due within 30 days after employment starts.
What is CP22A?
The notification of a private sector employee's cessation or death.
How long do I keep records?
7 years, and make them available to LHDN on request.
What is the penalty for late PCB?
The employer pages reviewed do not state one. Check LHDN's offences page or ask LHDN.
Can you run our payroll and PCB?
Yes. We handle payroll and the monthly submissions.
Sources
Official sources
- LHDN (HASiL), Employer responsibilities
- LHDN (HASiL), PCB payment
- LHDN (HASiL), Offences, fines and penalties
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with LHDN, the Royal Malaysian Customs Department and SSM, or with us, before you act. Checked November 2026.
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Questions on your company's accounts or filings? We will check your case first. All consultations are by video call.