There are several changes to 2016 PCB calculations set by LHDN this. Below is a summary of the changes that affect pcb calculations in Malaysian payroll software when upgrading from 2015 to 2016. (Click here for Malay Translation)
|Maximum income tax rate 25%||Maximum tax rate increased to 26% and 28%. 28% rate for individuals with income exceeding 1 million|
|Non – resident individuals’ income tax rate is 25%||Non – resident individuals’ income tax rate increased to 28%|
|Deduction for spouse whose has no income or pays an alimony to his former wife = RM3,000||Deduction for spouse whose has no income or pays an alimony to his former wife = RM4,000|
|Deduction of RM1,000 for each child below 18 years of age.||Deduction for each child below 18 years of age doubled to RM2,000.|
|Deduction For Children studying at tertiary level = RM6,000||Deduction For Children studying at tertiary level increased to RM8,000|
|Deduction for disabled child receiving further instruction at diploma level onwards in an institution of higher education RM12,000||Deduction for disabled child receiving further instruction at diploma level onwards in an institution of higher education increased to RM14,000.|
|Deduction on fees for tertiary education = RM5,000||Deduction on fees for tertiary education increased to RM7,000.|
|No Deduction for SOCSO||Eligible to claim a deduction up to a maximum of RM250 per year on the contribution to SOCSO.|
|No Deduction for Parental Care||New personal deduction of RM1,500 pre parent provided no claim for expenses on medical treatment and care of parents|
|For arrears payment related to the prior year (other than current year), employer should submit MTD amount by using CP39A text file format.||With effect from 2016, gross income from an employment receivable in respect of any|
particular period shall be taxed in the year it is received.
The CP 39A text file format is irrelevant.