(Tax Update) LHDN’s New E-PCB PLUS System Part 2

(Tax Update) LHDN’s New E-PCB PLUS System

Dear Valued KTP Clients,

We hope this newsletter finds you well. We have some crucial updates from the Inland Revenue Board of Malaysia (LHDN) that we believe you should be aware of. LHDN has recently made an early announcement regarding the transition to the new E-PCB PLUS system via the MyTax platform.

This transition is expected to bring significant changes to the way employers handle monthly tax deductions (PCB) for their employees. As your trusted partner in navigating the complex world of taxation, we want to ensure you are fully prepared for these upcoming changes.

Context

The Inland Revenue Board of Malaysia (LHDN) has taken a proactive step by announcing an early transition to the E-PCB PLUS system, a move aimed at modernizing and streamlining the payroll tax deduction process for employers.

This transition is set to enhance the efficiency and accuracy of calculating and remitting monthly tax deductions (PCB) through the MyTax platform. Here’s what you need to know about this important development and how it might impact your business operations.

What is the E-PCB PLUS System?

The E-PCB PLUS system is an upgraded electronic platform introduced by LHDN to simplify the monthly tax deduction process for employers. Unlike the current system, the E-PCB PLUS system integrates directly with the MyTax platform, offering a more comprehensive and user-friendly experience.

This new system will not only streamline the calculation of PCB but also improve the accuracy of data submission, reducing the likelihood of errors and ensuring compliance with tax regulations.

How to Add Employees to e-PCB Plus

Here’s a step-by-step guide on how to add employees to e-PCB Plus using the MyTax system.

1. Log in to e-PCB Plus:

  • Access the system via MyTax.

  • Ensure you have selected the correct role—either Pentadbir or wakil Pentadbir.

2. Go to the Employees Section:

  • Navigate to the ‘Pekerja’ (Employees) menu.

3. Create an Employee Group (if needed):

  • If you haven't created an employee group yet, click on ‘Tambah Kumpulan Pekerja’ (Add Employee Group).

  • Enter the group name and click ‘Tambah’ (Add).

4. Add Employees:

  • Once the group is set, click on ‘Tambah Pekerja’ (Add Employee) within the employee group.

5. Select Employee Identification Type:

  • Choose the appropriate identification type for the employee:

    • Tax Identification Number (TIN)

    • Identity Card Number (NRIC)

    • Passport Number (Passport)

6. Enter Employee Details:

  • Input the selected identification number and click the search icon (usually a magnifying glass).

7. Review and Complete Employee Information:

  • If the employee exists in the LHDNM database, their details will appear automatically.

  • Complete or update the required fields (marked with a red asterisk *).

  • If you are using a passport number and multiple records are found, you may need to enter the employee's TIN to refine the search.

8. Save the Employee Information:

  • Once all required information is filled out, click ‘Simpan’ (Save).

9. Handling New Employees Not in the LHDNM Database:

  • For new employees not found in the system, you will need to manually enter all their information. Ensure all mandatory fields are completed.

10. Verify Employee Addition:

  • After saving, check that the employee is listed in the appropriate employee group.

  • You can review all added employees in the ‘Employee List’ section.

Important Notes:

  • Ensure that the details you enter for each employee, particularly their tax identification numbers, are accurate and up-to-date.

  • If you are migrating from an older system, you might have employees requiring group assignments or information updates.

  • Employees with incomplete data will appear in the ‘Employees who need to be updated’ section for further action.

This guide provides the general steps, but note that the interface may vary slightly based on the version of the system.

Conclusion

The introduction of the E-PCB PLUS system marks a significant step towards a more efficient and modern tax administration in Malaysia. As we move closer to the implementation date, we encourage all our clients to stay informed and proactive in preparing for these changes.

Should you have any questions or need further assistance, please do not hesitate to reach out to our team.

We look forward to helping you navigate these changes smoothly.

Warm regards,

KTP Team

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