Employee Category

Schedule of Monthly Tax Deductions and the Computerised Calculation Method classifies employee into 3 categories:

Category 1 : Single
Category 2 : Married and spouse is not working
Category 3 : Married and spouse is working

Category 3 of the Schedule of Monthly Tax Deductions or the Computerised Calculation Method is applicable where an employee is divorced, widowed or a single (with adopted children).

Where a wife who elects to claim all child deductions, her MTD is ascertained under Category 3 (KA1 – KA20) while MTD for the husband is ascertained under Category 3 (K).

Where a husband and wife elect to claim deduction for certain child, MTD for husband and wife is ascertained under Category 3 (KA1 – KA20).

Example : 

A working husband and wife with 5 children. The husband claims child deduction for their 3 children and the wife claims for the remaining 2 children. MTD is ascertained as follows:

Husband – Category 3 (KA3)
Wife – Category 3 (KA2)

MTD is ascertained under Category 3 (KA1 – KA20) for an employee who is single with an adopted child.

Direct From:- http://www.hasil.gov.my/goindex.php?kump=5&skum=3&posi=1&unit=5100&sequ=6