Following the implementation of the transition plan towards the e-PCB Plus Phase 1 system in September 2024, the Inland Revenue Board of Malaysia (MIRB) has recently announced that this new Monthly Tax Deduction (MTD) service system, will be officially introduced to replace the existing systems, i.e. e-PCB, e-Data PCB and e-CP39 for data submission and MTD payments by the end of January 2025, subject to the completion of the final testing. The new e-PCB PLUS system, is an integrated system operated under the MyTax portal, aiming to streamline the payroll tax deduction process for employers to ensure efficiency and accuracy of MTD reporting. The full implementation of e-PCB Plus will be announced before its official launch for use by all employers and users.
Effective 16 January 2025, the current e-PCB system will be deactivated, and the employers and users will only have limited access to the existing system for viewing purposes, which will be available within a specified period to ensure that all MTD matters for the current and previous years are fully reconciled in the MIRB records. With this, the MIRB announced that all employers and users are required to register their role and update employer and employee information on the e-PCB Plus system through the MyTax portal immediately to ensure a smooth transition process.
We outline below the actions to be taken by all employers before the official launching of the new e-PCB Plus system to facilitate a smooth transition to the said system for January 2025 MTD submission and remittance: –
| Actions from the employers | Description |
| Registration of Employer role
*Note: If this has yet to be done | The director of the company is required to register the role as “Employer” to access the Company’s tax related information / matters. |
| Application of Employer Representative role | The employer can appoint the company’s representative handling the Company’s tax related information / matters on behalf of the director (if required). |
| Appointment of PCB Administrator role | The employer / employer representative can appoint the relevant employee(s) to handle the MTD matters on behalf of the Company. |
| Appointment of PCB Administrator Representative role | The employer / employer representative / PCB administrator can appoint the relevant employee(s) or third-party vendor (i.e. tax agent / payroll agent) to handle the MTD matters with assigned job scope and group of assignees on behalf of the Company. |
| Update employer information | The PCB administrator is required to update the employer information on the e-PCB PLUS system to ensure the details are complete and accurate. |
| Update employee information | The PCB administrator / PCB administrator representative is required to update the employee details on the e-PCB PLUS system to ensure the details are complete and accurate.
Criteria of employee information required:
Important Note: Please ensure that the employee information is correct and complete. Incorrect employee information entry will result in the failure of employee data processing. |
Currently, the e-PCB Plus system does not provide any option for tax agents to access the platform through the Tax Agent e-Filing (TAeF) portal. As such, we can support employers in familiarising themselves with the appropriate procedures and safeguards in utilising the e-PCB Plus system to accomplish and submit the MTD data and payments. Separately, it is anticipated that there are no changes as to how MTD is calculated subject to issuance of the annual specification for MTD calculations using computerised calculation. Nevertheless, from a global mobility perspective, employers will need to pay closer attention into how MTD for trailing income is reported in the year(s) subsequent to the departure of an assignee from Malaysia as income reporting and MTD payments occurring across different fiscal years may create undue discrepancies in the tax positions captured in the MIRB records under the e-PCB PLUS system. This would necessitate reconciliation efforts to be made with the MIRB records in view of potential queries from them. In this respect, employers may need to review and adopt a more consistent reporting approach on trailing income taking into account cost-benefit factors and other practical considerations.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Hilda Liow
Partner
Lim Phing Phing
Partner
Wee Lay Har
Director
Loh Zi-Lynn
Senior Manager
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