Monthly Tax Deductions (MTD) is a mechanism where the employer deducts the employee’s salary on a monthly basis for the purpose of paying the employee’s income tax. MTD is determined either by using computerized payroll calculation method or e-Jadual PCB via e-CP39 on the IRBM website.
The process of MTD involves three steps: deduction, remittance, and EA Form. During the payroll processing, the employer calculates the total monthly net remuneration and deducts the income accordingly. After the deduction is done, the employer submits the MTD Statement to LHDNM via e-Data PCB, e-PCB, or eCP39. Finally, the employer issues an EA Form to the employee, which contains details of the employee’s income and tax deductions for the year.
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This content is for informational purposes only and does not constitute professional advice. Always refer to the official websites/guidelines/regulations of the relevant authorities for detailed information and consult with a professional for personalized guidance.