|
| Why Need A Labuan Company? | |
| A. | Maximum Tax : RM 20K ( USD 7,000 ) |
| Save tax. You will not be audited too | |
| B. | Easier To Get Work Permit and Visa |
| Help foreigners stay in Malaysia. Easy to get Dependent Visa too | |
| Not for high risk countries + Must have legitimate business | |
|
1. How To Achieve That? a. You setup a Labuan Company ( 5 business days ) b. You open a Bank Account ( 4 weeks ) You will do business and save tax c. You apply for a Work Permit & Dependent Visa ( 8 weeks ) You will stay in Malaysia, optional d. Also, it depends on who your Labuan Company does business with. See examples below : |
| Examples | ||
| PASSED | 1. Business Nature : Non Trading 2. Investment Holding Company |
Case A |
| PASSED | 1. Do business with Non Malaysian company / foreign company 2. Do business outside Malaysia 3. Do business in Non Malaysian currency, Ringgit (RM) |
Case B |
| PASSED | 1. Do business with another Labuan Company 2. Do business in non Malaysian currency, Ringgit (RM) |
Case C |
| PASSED | Do business with Malaysian and non Malaysian and Labuan Company 1. Transactions (with Non Malaysians / Labuan Company) pay max RM 20,000 tax 2. Transactions (with Malaysians) pay 26% Malaysian domestic tax |
Case D |
| FAILED | Do Business with clients 1. In Malaysian Currency, Ringgit (RM), or 2. Apply for Work Permit / Dependent Pass without a business purpose 3. Get income from Malaysia domestic market - Consult for more info |
Case E |
2. Who Is Eligible?
|
|
3. Do You Know You Pay Tax Twice? 1. Corporate Tax - Your company pays corporate tax 2. Personal Income Tax - You pay income tax from salary derived from your company |
|
Benefits 1. 100% Ownership and Control Foreigners will totally own the Malaysian business 2. Minimum Requirement 1 same director + 1 same shareholder + USD 1.00 paid up capital 3. Business Nature : Non Trading Your Labuan Company will pay zero corporate tax 4. Personal Income Director Fee to attend board meeting is tax free + Dividend to shareholder is also zero income tax 5. Labuan Legislation The law is stable and will remain robust for many years 6. Double Taxation Agreements, DTAs You are protected in avoidance of double taxation 7. Stay in Malaysia + Do Business Cheaper method for foreigners to stay in Malaysia. See Comparison : What is the cheapest method for foreigners to stay in Malaysia + Do business? |
|
4. Diagram Summary Labuan Company's Tax Structure 
|
|
5. How Do I Verify These Information? Check it with Malaysian Regulatory Body |
||||||
|
||||||
| 6. Schedule of Fees |
||
|
||
| Additional Services |
||||||||
|
||||||||
| Examples of Fees Note : Annual renewal will be cheaper than below | ||||||||||||||||||||
|
||||||||||||||||||||
|
7. Contact Us LabuanTax.com Contact Person : Gary Wong Contact Number : +6 016 821 8171 Email : gary@labuantax.com |
How To Start? 1. Fill in the form below 2. We will incorporate your Labuan Company 3. Make payment to our Trust Company directly 4. Get your Labuan Company in 5 business days |
Someone Asked Questions Malaysia, Charles1. Can we have a Labuan company to charge management fee to a New Zealand company? Any special requirement? Yes, you can. No problem receiving income outside Malaysia 2. Do we need to have office, manpower, etc at Labuan? Not neccesary 3. Is there any tax imposed on dividends to shareholder? The shareholder will pay no personal income tax on dividends  United Kingdom, David1. Can foreigners purchase properties in Malaysia? Yes, foreigners can buy, rent, use the property in Malaysia. a. West Malaysia ( Minimum Purchase Value ) : RM 1 Million, 2014 b. East Malaysia ( Minimum Purchase Value ) : RM 1 Million, 2014  Australia, SimonWe run a software company and manage our clients around the globe. Currently, we are considering the option of a Labuan Company. However, we will appreciate your assistance to our queries. 1. Can we live in Malaysia? Yes, you can. You will apply for a work permit / dependent pass Appendix I : Foreigners Stays and Works From Malaysia Appendix II : Malaysia My Second Home Program ( Requirement : Show Proof of Wealth ) 2. Is my foreign income taxable? How much tax should we expect? Yes, your foreign income is taxable. Non trading business is zero. Maximum corporate tax for trading business is RM 20,000. Anything lower than that is 3% tax and must be audited. 3. How long does it take for the whole thing? a. Labuan Company - 5 working days b. Bank Account - 4 weeks after the setup of the Labuan Company c. Expatriate Work Permit, Visa - 8 weeks after the setup of the Labuan Company Note : You must satisfy the documents required to achieve the above. Easy |
| Appendix I Foreigners To Stay In Malaysia + Do Business |
| Labuan Company | Local Company, Sdn Bhd |
Malaysia My Second Home |
|
| Duration How long can a foreigner stay in Malaysia? |
As long as the existence of your Labuan Company | Renewable | Maximum 10 years Renewable |
| Procedure How to achieve that? |
1. Setup a Labuan Company 2. Apply for Expatriate Work Permit. ( Easy procedure ) 3. Paid up Capital RM 250,000 4. Labuan Office + Labuan Home |
1. Setup a Local Company 2. Apply for a Work Permit |
Show evidence of wealth. See Appendix II : Malaysia My Second Home Program ( Requirement : Show Proof of Wealth ) |
| Minimum Requirement |
1. One same Director 2. One same Shareholder 3. Foreigner has 100% ownership of the company 4. No audit for non-trading business or, opt for RM 20K tax remittance for trading business (will not be audited) |
1. At least 2 Directors 2. At least 2 Shareholders 3. Paid up capital RM 1 Million 4. Must appoint a Malaysian Auditor |
Show Evidence of Wealth : 1. Liquid Asset worth at least RM 350K 2. Offshore month income at least RM 10K, and 2. Offshore month income at least RM 10K, and 3. Fixed Deposit with Malaysian bank at least RM 150K |
| Dependent What about your spouse, son or daughter? |
Apply for Dependent Visa | Apply for Dependent Visa | Apply for Dependent Visa |
| Document Requirement | Easy | Many documents required, especially for accounting and tax purposes |
A few documents + Medical Report + Medical Insurance |
| Pricing | Labuan Company Bank Account Work Permit, Visa USD 7,000 |
Company Formation alone RM 3,000, and above |
RM 450K and more Est, USD 150,000 |
| Do Business | Allowed |
Allowed | Not Allowed |
| Recommendation What is your opinion? |
Best . Cheapest | - | - |
|
Appendix II Malaysia My Second Home Program Application Requirement : Show Proof of Wealth Age : Below 50 years old a. Liquid Asset worth RM 500,000, or more b. Offshore Income RM 10,000 / mth, or more c. Fixed Deposit with Malaysian bank RM 300,000 (Min maintenance : RM 150,000) d. Or, buy a Malaysian property RM 1 million ( Fully Paid ) to reduce Fixed Deposit to RM 150,000 Age : 50 years old and above a. Liquid asset worth RM 350,000, or more b. Offshore income / pension RM 10,000 / mth, or more c. Fixed deposit with Malaysian bank RM 150,000 (Min maintenance : RM 100,000) d. Or, buy a Malaysian property RM 1 million ( Fully Paid ) to reduce Fixed Deposit to RM 100,000 |
DEFINITIONS
|
|
Disclaimer 1. Use the materials in this site at your own risk. 2. We make no claim on its accuracy 3. We accept no liability of any form from the use of this material 4. Hey, remember to quote LabuanTax.com for the use of our material / website structure. This is basic courtesy. Do not be a Thief :-) |
| Trust Labuan Tax |
| Company No : LL09349 | License No : LMT0058 |
| Email / Complaints : gary@labuantax.com / sales@trustlabuantax.com |
| Tel : +6 016 821 8171 |
