Malaysia Hotline: +603-2141 8908
Labuan is located in eastern
Malaysia and also one of the Federal Territories of Malaysia. Located in the
heart of the Asia Pacific region, Labuan is strategically positioned to reach
one of the fastest growing regions in the world, creating an excellent
opportunity for companies to connect with Asia and other economies. Malaysia's
Labuan International Business and Finance Center has a good partnership with
countries around the world. As ASEAN will formally form the ASEAN Economic
Community (AEC), it will become the seventh largest economy in the world. Then,
the “One Belt, One Road” strategy advocated by China has further accelerated
economic growth in Asia and brought tremendous opportunities for cooperation
among countries in the region.
Labuan
Corporate Tax Overview
1. Double Taxation Agreement
(DTA)
Generally, zero-tax overseas
registered countries such as BVI or Cayman have no way to sign a double
taxation agreement with any country, commonly known as the DTA (Double Taxing
Agreement). The advantages like Labuan are rare in the world. Labuan's 3% net
profit and RM20,000 fixed tax amount indirectly maintain its flexible strategy
in the double tax agreement. Moreover, the holding company does not need to pay
taxes in Labuan, and Greater increase in the attractiveness of Labuan. To
further protect entrepreneurs, Labuan did not claim to be Tax Haven, but the
Strategic Tax Planning Centre.
2. Excellent Tax Benefits
-
Labuan
non-trading company: This type of business activity is tax exempt under
the tax regulations of Labuan;
-
Labuan
trading company: business activities other than holding investment, such
as: trade, consulting management, insurance trust, etc., can choose to pay
3% corporate profits tax, but must submit annual audit report; or pay
annual tax of RM 20,000, but exempted from submitting annual audit report;
-
For
companies who have business with Malaysian companies, a 25% corporate tax
must be paid (not recommended);
-
No
stamp duty, value added tax, consumption tax, service tax, withholding
tax;
-
Without
foreign exchange controls, company funds can be flow freely.
All Labuan's financial year ends
on December 31 of each year. Companies that choose to pay a 3% corporate
profits tax must prepare financial statements and audit reports to the
Malaysian Taxation Office. Companies that choose to pay an annual tax of RM
20,000 do not need to prepare audit report. Labuan companies must maintain
financial statements, complete audit reports, submit annual returns, tax
returns, E forms and forms BE (if applicable) in accordance with the
requirements of the Labuan Administration to complete the annual compliance
process.
Contact Us
If you have further queries,
please contact Tannet
24 hours Malaysia hotline：603-21418908;
24 hours Hong Kong hotline：852-27837818;
24 hours China hotline：86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP:
http://www.tannet-group.net , http://en.tannet.com.my