Do you still need to file a tax return when PCB is deducted from your monthly salary?
Withholding tax or Potongan Cukai Bulanan (PCB) is a monthly deduction from an employee’s salary that the employer pays to the Inland Revenue Department for the purpose of paying income tax. If you are already paying PCB every month, do you still need to file a tax return?
In fact, you do not have to file a tax return from March to April every year, but you must meet the following 5 points. The first is that you only have salaried income, no additional income such as taxi, online sales, investment income, etc.. Second, your employer has paid the monthly withholding tax, and third, you have worked for the same employer for 12 months in a year. The fourth is that the tax is not borne by the employer, and the fifth is that you choose to file separate tax returns for husband and wife.
If you find that you have overpaid taxes on your monthly PCB returns and you have other deductible items, you will need to file an income tax return in March and April to claim back the overpayment.
To claim back the overpaid PCB tax, remember to apply for a tax refund within the deadline. If you do not file your tax return after the deadline, you will not be able to claim the tax deduction you are entitled to once the Inland Revenue Department considers you to have elected the “final tax”.
Taxpayers must meet these 5 criteria to enjoy the convenience of not having to file a tax return, and if one of the criteria is not met, a separate return will still be required. The 5 main criteria for the final tax target group are
1. only salaried income (no outside income)
2. the employer has paid the monthly withholding tax
3. 12 months of employment with the same employer in a year
4. the tax is not borne by the employer
5. spouses file separate tax returns.
