Editor’s note: This blog post, originally written in July 2020, has been updated to reflect the latest regulatory changes for the year 2024. Thank you for your continued support.
You may know how to calculate Monthly Tax Deductions (MTD/PCB). But do you know how to pay PCB through to Lembaga Hasil Dalam Negeri (LHDN) or the Inland Revenue Board of Malaysia (IRBM)? This is the most important step to carry out.
After all, if you as an employer fail to deduct and/or remit payment by the 15th of the following month, you can be fined RM 200 – 20,000 or given 6 months imprisonment or both. With a prosecution in a civil court, the PCB owed will become a debt to the Government.
It’s an outcome everyone wants to avoid. Hence, you’d definitely like to know more about all the different options to pay PCB through to LHDN, as seen in the list below.
- Manual submission at the LHDN payment counter
- Payment at counter bank using a diskette
- Payment through the Internet
The third option is by far the easiest method, which we will go through in this article. So, how do you pay PCB through to LHDN online?
Method 1: Internet Banking to pay PCB
Several banks in Malaysia offer payroll bulk payment services. You can use the PCB bank file generated by LHDN-approved software like Talenox and upload it to your bank’s website for payment. The uploaded file will also inform the LHDN of the breakdown of each employee’s contributions.
Below are the appointed agents that have the electronic payment facilities to receive PCB payments.
|Name of Bank
|Income Tax payment
PCB payment is a one-click submission for some banks like RHB Bank; thereafter, users can go to RHB Reflex Premium Plus to approve the submission. Here are a few screenshot examples of how a two-step PCB payment submission works for RHB Reflex Premium Plus users that are linked up to Talenox.
- Once payroll is processed, users can click ‘Export Bank file/EPF/PCB(MTD)’ and select ‘Export PCB(MTD)’ from the drop-down menu
- Payment for MTD(PCB) will then be sent to RHB. You will need to login to your RHB Reflex Premium Plus account to approve the payment from there.
Method 2: LHDN’s e-Data PCB
Key differences between the three systems
|For automated submission of monthly tax deduction of registered users. Once the user is registered in the portal, the employer can simply upload the PCB file generated by Talenox.
|For manual submission of monthly tax deductions of registered users. Once an employer is registered on the website, they will need to enter all the employee’s details manually. All the data entered will be auto-saved for the next submission. New employee data will need to be adjusted manually.
|For manual submission of monthly tax deductions of unregistered users and for one time submissions only.
We recommend submitting PCB via e-Data PCB, as it is the most convenient option of the three. Let us go through the steps for this process below!
So, how do you begin to submit PCB via e-Data PCB?
Start by exporting the PCB bank file generated by your HR software.
We recommend ensuring that your HR software is LHDN-approved, like Talenox. You will need to export this file so you can import it into e-Data PCB later on. Do note that the PCB Bank File must be in .txt format. Below is an example of how a PCB bank file.
Import the PCB bank file into your LHDN e-Data account
Then, go to the LHDN website and login to LHDN e-Data with your existing employer ID. You can apply for one with your employer E number if you do not have a login yet. Once you are in, you will want to import the PCB bank file.
To do so, simply click on Upload/Validate Text File, browse the file downloaded from Talenox, and click on submit button to upload. Once you successfully upload the file, click on the file name to validate the result.
Check that the details and numbers in your PCB summary is correct
The PCB summary will be shown on the page. This is where you want to look at the summary and verify that every single information is correct, especially the PCB Amount (RM). Once you are sure, click on “Proceed to Instrument Information”.
Let LHDN know where they should extract payment from.
You will see a blank table, as seen in the screenshot below. This is where you will need to fill up the payment details to let LHDN know where they should extract payment from.
Clicking into the boxes won’t allow you to make edits straightaway. You will need to start by clicking ‘Update’ so you can begin editing the table.
Under the ‘Mode of Payment’, select your payment mode accordingly. For example, if you want to proceed with online payment, simply select ‘FPX’ from the drop-down menu. Other than demonstrating payment via FPX (i.e. online payment), paying at the ‘Bank Counter’ or ‘IRBM Counter’ are also possible options that you can select from the drop-down menu. In this example, we selected FPX as online payment is the most convenient method of payment.
Then, click ‘Submit’ to send in the transaction and on ‘Confirmation’ to proceed.
Thereafter, you will see a ‘Confirmation On Instrument Information and Data Submission’.
Check that the details and numbers displayed are correct
- Company’s Name
- Company’s Address
- E No. (HQ)
- E No. (Branch)
- Month / Year
- PCB Amount in Total (RM)
- Total PCB Record
- CP38 Amount in Total (RM)
- Total CP38 Record
And verify that the following details under ‘OFFICER IN CHARGE INFORMATION’ are accurate:
- Full Name
- IC Number
- Phone Number
Then, click on the ‘FPX payment’ button at the bottom. It will redirect you to the bank login page and make the transfer.
From there, you can simply proceed to the payment gateway by clicking on the ‘FPX Online Payment Confirmation’ button.
After submitting the payment, consider if you want to generate a payment confirmation receipt.
We recommend generating the payment confirmation receipt in PDF to keep for your record. To do that, simply click on ‘Submit PCB/CP38 Data’ and select ‘List of Verification Files’ from the drop-down menu. Then, look for the file that you want to save and click on ‘View’.
Then, click on ‘Print Confirmation Slip’. This will export the receipt in PDF, which you can proceed to save in your folders.
Method 3: Use FPX to pay PCB
What is FPX?
FPX is a convenient and secure online payment solution that can allow real-time debiting of your internet banking account of multiple banks. It can also allow immediate and direct crediting into your account by banks.
All payments are concluded online on a real-time basis, making the service as good as cash. Plus, it generates payment records, simplifies reconciliation and reduces risk, thereby encouraging more shoppers to shop online. Learn more about the fees and charges for the FPX service(s) here.
Do I qualify for FPX?
You can register as an FPX merchant with any of the FPX participating acquirers; this is so they can make the necessary arrangement for you.
To qualify for FPX, you need to:
- Have your own website or mobile app registered with FPX or have connectivity with an existing gateway that is connected to FPX
- Choose your preferred acquirer among the FPX participating acquirers.
- Possess a corporate banking account for crediting of the payments made by your customers. In addition, you must have an account with any of the following banks: AmBank, Bank Islam, CIMB Bank, Hong Leong Bank, Maybank2e/Maybank2U and Public Bank.
How do I register to be an FPX merchant?
Option 1: Direct Integration via acquiring bank:
- Once you select your preferred participating acquiring bank, you will be provided with the FPX Merchant Registration Form (MRF) to complete the merchant registration.
- As soon as you receive the Staging Seller ID, you are required to download the Merchant Interface Specification and other guidelines to begin development and integration works.
- Upon successful integration and connectivity with FPX, you will need to perform system integration and user acceptance testing.
- With successful user acceptance testing, you will be provided with Production Seller ID for configuration at your end as well as at your acquiring bank’s end.
- Once you’ve completed the above activities, you are ready to go-live with FPX!
Option 2: Integration via third party acquirer/exchange:
- Once you select your preferred participating acquirer and/or exchange, you will be provided with the FPX Merchant Registration Form (MRF) to complete the merchant registration.
- As soon as you have received the Production Seller ID, your appointed third party acquirer or exchange will perform the Production Seller ID configuration at their end.
- Upon completion of the above activities, you will be ready to go-live with FPX!
Want to take precaution and double-check your PCB calculation?
There are many free online calculators to help you ascertain the correct PCB amount to pay. Calculate your PCB, as well as your EPF and salary among other income tax amount online with this free calculator by LHDN-approved HR software, Talenox.
It helps you gain peace of mind as Talenox’s PCB calculation and EPF contribution rates are updated and accurate, as of 2020. This is applicable for Malaysia Residents, Non-Residents, Returning Expert Program and Knowledge Workers.