|Why Need A Labuan Company?|
|A.||Maximum Tax : RM 20K ( USD 6,700 )|
|Save tax. You will not be audited too|
|B.||Easier To Get Work Permit and Visa|
|Help foreigners stay in Malaysia. Easy to get Dependence Visa too|
|Not for high risk countries + Must have legitimate business|
1. How To Achieve That?
a. You setup a Labuan Company ( 3 business days )
b. You open a Bank Account ( 14 business days )
You will do business and save tax
c. You apply for a Work Permit & Visa ( 30 business days )
You will stay in Malaysia, optional
d. Also, it depends on who your Labuan Company does business with. See examples below :
2. Who Is Eligible?
3. Do You Know You Pay Tax Twice?
1. Corporate Tax - Your company pay corporate tax
2. Personal Income Tax - You pay income tax from salary derived from your company
1. 100% Ownership and Control
Foreigners will totally own the Malaysian business
2. Minimum Requirement
1 same director + 1 same shareholder
3. Business Nature : Non Trading
Your Labuan Company will pay zero corporate tax
4. Director Fee
Foreigners will declare income as director fee and pay zero income tax
5. Labuan Legislation
The law is stable and will remain unchanged 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
|Examples of Fees|
Note : Annual renewal will be cheaper than below
7. Contact Us
Tax Agent, LabuanTax.com
Contact Person : Gary Wong
Contact Number : +6 016 821 8171
Email : email@example.com
How To Start?
1. Fill in the form below
2. We recommend a good trust company to you
3. Make payment to the trust company directly
4. Get your Labuan Company in 3 business days
Someone Asked Questions
1. Can we have a Labuan company to charge management fee to a Papua New Guinea company? Any special requirement?
Yes, you can. No problem receiving income out of Malaysia
2. Do we need to have office, manpower, etc at Labuan?
3. Is there any tax imposed on dividends to shareholder?
The shareholder will pay no personal income tax on dividends
United Kingdom, David
1. Can foreigners purchase properties in Malaysia?
Yes, foreigners can buy, rent, use the property in Malaysia.
a. West Malaysia ( Minimum Purchase ) : RM 250K
b. East Malaysia ( Minimum Purchase ) : RM 350K
We 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 / dependence 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 - 3 working days
b. Bank Account - 14 working days after the setup of the Labuan Company
c. Expatriate Work Permit, Visa - 30 working days after the setup of the Labuan Company
Note : You must satisfy the documents required to achieve the above. Easy
Foreigners To Stay In Malaysia + Do Business
|Labuan Company||Local Company,
How long can a foreigner stay in Malaysia?
|As long as the existence of your Labuan Company||Renewable||Maximum 10 years
How to achieve that?
1. Setup a Labuan Company
2. Apply for Expatriate Work Permit. ( Easy procedure )
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 )
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 500,000
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
3. Fixed Deposit with Malaysian bank at least RM 150K
What about your spouse, son and 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
Work Permit, Visa
|Company Formation alone
RM 2,000, and above
|RM 450K, and more ( est, USD 150,000 )|
What is your opinion?
|Best . Cheapest||-||-|
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
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 any part of this material.
This is basic courtesy :-)