Malaysia Hotline: +603- 2141 8908
The
federal territory of Labuan is a group of tropical islands off the coast of
Sabah and was established as Labuan International Business and Financial Centre
(Labuan IBFC) to attract international financial activities. Right from the start, the Malaysian
Government had taken pains to avoid the label 'tax haven' for Labuan, and had
been vigilant against being used for international money laundering. However,
its tax rate of 3% on net profit or a flat amount of RM20, 000 per year clearly
calls to mind as a tax haven.
Tax
Rate in Labuan
The corporate
tax of a Labuan company is very flexible and simply by declares as one of the
following:
• Dormant,
non-trading and investment holding company – no corporate tax.
• For
trading company, there is 2 tax rate:
(1) A
tax rate of 3% on net profit
(2) An
amount of RM 20,000 tax regardless of your company turnover
• For
company having business with Malaysia company, it have to pay a 25% of
corporate tax (not advisable)
All
Labuan Company have their financial year end on every year of 31st December.
Director has to prepare the management account and audit reports (for tax rate
of 3%) submit to Malaysia Inland Revenue.
Company have to maintain management account, complete audit report,
filed annual return, tax submission, Form E and Form BE (if applicable) to
complete annual compliance procedure.
Labuan
Non-Trading Activity
Labuan
non-trading activities refer to the holding of investments in securities,
stocks, shares, loans, deposits or any other by a Labuan entity on its own
behalf.
Labuan
Trading Activity
Labuan
trading activities included banking, insurance, trading, management, licensing,
shipping operations or any other activities not considered as a Labuan
non-trading activity.
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