Malaysia’s Income Tax Department has announced an important adjustment aimed at improving tax processing and compliance efficiency. The new e-PCB Plus System will integrate the three existing systems—e-PCB, e-CP39, and e-Data PCB—into a single, comprehensive platform. Here’s what employers and employees need to know about the changeover is covered in great length in this article.
⚠️Important Notice for All Employers & Taxpayers⚠️
📢 NOTICE: DEADLINE FOR e-DATA PCB / e-PCB / e-CP39 AND IMPLEMENTATION OF e-PCB PLUS
- Please be informed that the deadline for submission of data and payment for Monthly Tax Deductions (MTD) for current and past months is 📌15 January 2025 for employers using e-Data PCB, e-PCB, and e-CP39 services.
- Employers/users are requested to complete all MTD data submissions and payments on or before this date. This is to ensure that all current and past year MTD are fully completed through these services.
- After this date, the functions for MTD data submission and payment will be completely closed. Employers/users will only have limited access to the system for review purposes only, which will be available within a specified period.
- Employers/users are advised to take appropriate action to facilitate a smooth transition to the e-PCB Plus system, which is expected to be launched by the end of January 2025, subject to the completion of final testing.
- Employers who have not yet registered for e-PCB Plus are urged to take immediate action to enable a smooth transition process. Only employers who currently use the e-Data PCB, e-PCB, and e-CP39 services are required to register for e-PCB Plus via MyTax portal.
- Employers using e-Data PCB are requested to update the tax identification number (TIN) details of their employees in their payroll system to facilitate smooth submission of MTD data in e-PCB Plus. Incomplete employee PCB data/information will not be processed and will be rejected.
What is the e-PCB Plus System?
The new e-PCB Plus System is designed to integrate all services related to Potongan Cukai Bulanan (PCB) — including e-PCB, e-CP39, and e-Data PCB — into a single platform accessible through the MyTax Portal. This change aims to simplify the management of PCB data by using a Tax Identification Number (TIN) associated with the user’s MyTAX ID.
Benefits of the e-PCB Plus System
- Unified Platform: The e-PCB Plus System simplifies processes and enhances the user experience by integrating multiple systems into one.
- Efficiency: Employers can save time through the centralized and automated administration of PCB data.
- Accuracy: Improved data accuracy ensures compliance with tax laws.
Key Dates and Registration Process
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Launch Date:
The exact launch date will be announced later. Employers will be notified in advance to make the necessary preparations.
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TIN Registration:
Starting on January 1, 2024, individual TIN applications must be submitted online through the e-Register application on the MyTax Portal. For citizens and permanent residents aged 18 and above, TIN registration will be automatic.
Employer Responsibilities
A seamless transition to the new system is mostly the responsibility of employers, who include:
- Register Authorized Individuals: Ensure that every employee responsible for PCB computations and payments is registered and has a MyTAX ID.
- Accurate Employee Data: Verify that the names, TINs, and identity numbers (IC or passport) of employees are accurate and up-to-date. Processing of PCB can be hampered by errors.
- Transition Planning: Familiarize themselves with the new system and its features to ensure a smooth transition.
How to Check Tax Identification Number (TIN)?
Employees and employers may confirm their TIN by
- going to the MyTax Portal Malaysia.
- Contact Centre: If calling from abroad, dial 603-89111100 or 03-89111000.
- HASiL Office: For help, stop by any local HASiL office.
TIN is a unique identifier assigned to individuals and entities registered with the Inland Revenue Board of Malaysia (IRBM). This number, comprising a TIN Code and a set of numbers, is essential for tax purposes. It helps the IRBM track taxpayers and manage their tax obligations effectively.
Understanding e-PCB, e-CP39, and e-Data PCB
e-PCB System
Employers without computerized payroll systems can calculate and administer PCB with the help of the web-based e-PCB system. Important features include monthly PCB computations.
- online PCB payment data submission,
- employee information and
- PCB/CP38 payments storage.
e-CP39 System
Payments and PCB data submission are made online by registered users of the e-CP39 system. Access to the system requires registration of an ID and password.
e-Data PCB System
Companies can post CP39 text files online using the e-Data PCB system. Easy PCB data management is made possible by this technology, which guarantees data submitted complies with predetermined forms.
Current Payment Methods
Payroll options available to employers include:
- FPX (Financial Process Exchange): Payments made using ezHASIL, the official LHDNM portal.
- Internet Banking: CIMB Bank and other banks can be accessed via IBG/RENTAS/Telegraphic Transfer/Direct Cash Transfer services.
- Bank Counters and ATMs: A few chosen bank counters and ATMs allow payments.
Differences Between e-PCB, e-CP39, and e-Data PCB
- e-PCB: Employers without computerized payroll systems can use e-PCB. Enables PCB calculations, employee data storage, and PCB data submission online.
- e-Data PCB: For companies using computerized payroll systems, there is the e-Data PCB. Enables data format conformance and allows CP39 text file uploading.
- e-CP39: Enables registered and non-registered users to compute PCB amounts and make payments; designed for employers without computerized payroll systems.
Who Should Use e-PCB and e-CP39?
Every income received in Malaysia, whether from work or self-employment, is liable to taxes. As things are, anyone making RM34,000 a year (after EPF deductions) has to file an income tax return.
Companies without computerized payroll systems who used to submit paper forms and pay PCBs at LHDN payment centers should switch to the online e-PCB and e-CP39 systems. Accessible from anywhere, these tools enable a more effective and well-organized tax management procedure.
Filing Individual Income Tax Online
To those who are qualified to pay income tax, knowing the filing deadlines is crucial:
- Without business income: by April 30th of each year at the latest.
- With business income: by June 30th of each year.
Information Needed
Income Tax Reference Number: SGXXXXXXX e-Filing PIN
These can be picked up at the closest LHDN office. MySyarikat is another tool at your disposal to help with filing.
Importance of Accurate Tax Filing
On time and accurate tax filing guarantees that taxpayers carry out their responsibilities honestly and promotes national growth. Contributions from income tax are essential to the financial stability of the country and to the support of the underprivileged.
Get Ready for the e-PCB Plus Transition with Pandahrms!
With the Income Tax Department introducing the new e-PCB Plus System, ensure your company is ready for a seamless transition. Pandahrms offers advanced HR software solutions designed to simplify tax and payroll management.
Why Choose Pandahrms?
– Highly Secure and Fully Compliant: Stay updated with regulatory changes while using our secure, reliable system.
– Fully Automated Processes: Streamline payroll and HR tasks with automation, saving time and reducing errors.
– Dedicated Premium Support: Our expert support team is here to assist you with any questions or challenges during the transition.
