If its just monthly declaration, i dont see any point in that since there wont be much difference to the current PCB method instead of incurring more problems to processing monthly salary and deductions and tax value.

why the hassle?

on normal basis, lets say you earn RM3K, if you work for six month and then have no job for the other 6m months, your yearly salary would be RM18K and thus you wont be eligible for the tax bcoz of the rebate.

but with this monthly tax system, during the 6 months where you are working, you are already paying the government your ‘monthly tax’ regardless of when u dont have a job.

but then again, i’m not really sure if it is monthly tax submission or monthly tax exemptions. :)

G: Technically speaking, as long as you’re working and your salary is above the taxable income, the company you work for will submit the deductions to LHDN. That is applicable even on the old system and if you wound up working for 6 months as in the scenario you outlined above, the government will need to refund you the deductions that your company made automatically on your behalf. The new system is simply a means of making ‘more accurate’ deductions. Having said that, I think the current system is plenty accurate. Quite frankly, the exemptions do not contribute much to the miscalculations. More often than not, it’s the annual bonuses that screws up and skews the taxes paid. Especially those who get huge bonuses.