Malaysia Hotline: +603- 2141 8908
The
Federal Territory of Labuan is part of Malaysia and comprises seven small
islands of which Pulau Labuan is the largest. Labuan lies off the north-west
coast of Borneo and not far from Brunei Darussalam. It is located on the major
shipping and air routes of the Asian Region and is Malaysia’s only deep water
anchorage. Labuan is roughly triangular in shape and derives its name from the
Malay word for “an anchorage”. Labuan has a tropical climate, which is warm and
humid throughout the year. Daytime temperatures average 30°C with two seasonal
monsoon periods stretching from April to June and from September to December.
The
Island of Labuan covers an area of approximately 92 sq. km, and has an
estimated population of 75,000. The largest town and financial center is Labuan
Town and the main language is Bahasa Melayu but English, Tamil and various
Chinese dialects are widely spoken.
The
Nation is economically strong and politically stable. Under the guidance of
LOFSA (the Labuan Offshore Financial Services Authority) the Malaysian
authorities have invested heavily into the improvement of Labuan’s physical
infrastructure, which is completely modernized and provides a state of the art
telecommunications system including an Internet Gateway which provides an
e-commerce platform. More than 50 of the world's top banks have branches in
Labuan.
The
primary reason to elect as Labuan company is that the company will enjoy low
tax rate imposed which is 3% of audited net profits or fixed tax of RM20,000.
There will be substantial tax savings if compared to open conventional
Sendirian Berhad (Sdn Bhd) which will be imposed of fixed tax rate of 25%.
Labuan
trading activity includes banking, insurance, trading, management, licensing,
shipping operations or any other activity which is not a Labuan non-trading
activity.
Labuan
non-trading activity means an activity relating to the holding of investments
in securities, stocks, shares, loans, deposits or any other properties by a
Labuan entity on its own behalf.
Labuan
incorporated company has to:-
-Do
business with non-Malaysian company / foreign company
-Do
business in non-Malaysian currency
-Business
nature falls under either Labuan Trading Activity or Labuan Non-Trading
Activity
If it
happens to have transactions that involve Ringgit Malaysia (RM) currency or
transactions with Malaysians, then this particular portion of profits will be
taxed under normal 25% tax rate.
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 Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my