In Malaysia, employees are entitled to certain tax deduction reliefs that help reduce their monthly tax deduction (MTD/PCB). These reliefs are based on personal, family, lifestyle, and other allowable expenses as defined by the Inland Revenue Board of Malaysia (LHDN).
By setting up these reliefs in the system, you can ensure that your employees' monthly tax calculations are more accurate and reflect their eligible entitlements.
For the full list of available reliefs and their conditions, please refer to LHDN’s official guide here: LHDN Tax Reliefs.
Follow the steps below to add or update tax reliefs for an employee:
1. From the main menu, navigate to Staff Directory.
2. Locate the employee you want to update. From the dropdown, choose Payroll Info and click GO.
3. In the Employee Payroll Info section, click EDIT to make changes.
4. Scroll to the Tax Details section and expand the Employee Deduction Info (in MYR) section.
5. Input the relevant tax relief details for both previous employment (if any) and current employment.
⚠️ Note: SOCSO and EIS contributions will not be included in the system's monthly tax calculation.
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