Ways to Maintain Your Labuan Company- Important to Comply
To keep your two (2) years’ Work Visa active status, you are advised to pay promptly the annual fee charged by Labuan Financial Services Authority (www.labuanibfc.com) with necessary compliance align with your Business Activities.
These events may happen to you:
1. Your company may be strike-off from the Registrar Company of Labuan Authority if you fail to pay the annual filling fee USD 900
2. Your 2-years’ Work Visa may faced auto-termination at the Immigration check-points at KLIA once your Labuan International Company was struck-off
3. For re-activation of the Company application, Labuan Financial Services Authority reserves the sole discretion for approval. Penalty will be charged with the possibility blacklisting the name of all members in the company.
Ways to Maintain Your Labuan International Company- Cost Guidance
- Annual fee charged By Labuan Financial Services Authority – USD 900 annually
- Service Fee charged by Company Secretarial, including submission of Annual Return and Registered Office Address – USD 1,000 annually
- Corporate Tax Filling to Income Tax Department – min. USD 150 annually
- Individual Tax Filling to the Income Tax Department – min. USD 100 annually
- Audit fee – payable to Auditor for accounts (if any)-Payable once a year of min. USD 600 (price varies depends on the transactions volume, rule of tumb the audit fee usually is 0.1% of the sales turnover)
During the course of business, you may want to make changes where special Resolution will be required. The fee will be minimum USD 50 per resolution or assignment. This fee exclude all disbursements and fees payable to the relevant authorities (if any).
– Change of Directors
– Change of Shareholders
– Change of Company Name
– Memorandum & Articles amendments
– Capital Increased/Allotment
– Lodgement of Bankers Guarantee
– Charge, Issuance of Prospectus
– Bonds & Preference Shares
– EGM (extra-ordinary meeting)
For your Bank Opening Account, you would require to purchase Company Information Letter from the Labuan Authority, each set cost USD 250 approx.
YEARLY MAINTENANCE COST COMPARISON BETWEEN MALAYSIA LOCAL COMPANY SDN BHD and LABUAN INTERNATIONAL COMPANY
For Malaysian Company (Sdn Bhd) : Secretarial Fee, Auditor Fee and Tax Agent Fee : MYR4,000 to MYR5,000
Mainly, Labuan International companies are divided into two categories as follows:
2. Trading Companies (trade internationally) on import and export, goods, consultancy and advisory.
[Read: More on Taxation and Compliance for Labuan International Company]
Basically there are two types of tax to comply with the Inland Revenue Authority for Labuan International Company, namely Corporate Tax on your Company and Personal Tax if you or your employees do collect fees, bonus, dividend, etc from the company.
For Corporate Tax:
For (Non-Trading)Investment Holding companies- no tax and no audit is required.
For Trading companies – either 3% tax on net profit or pay MYR20,000 (USD 7,000), upon your election at end of each financial year ends @ 31 st Dec. For election of MYR20,000 tax payable – no audit account. For election of 3% – account needed to be audited. Filing of Corporate Tax Return dateline by 31st March each year, extendable to 31st May (subject to Income Tax’s discretion).
A. Non-taxable for all Income from Director’s fees received by a non-Malaysian citizen Director of a Labuan entity (YA 2011 to YA 2020). Income of a non-Malaysian citizen from exercising of an employment in a managerial capacity with a Labuan entity in Labuan, co-located office or marketing office is exempt to the extent of 50% of gross income from the employment (YA 2011 to YA 2020).
B. Personal income tax return to be lodged to Income Tax Department is required yearly by April 30th.
The above are ways to maintain your Labuan International Company which recommended by us to ensure all compliance are dealt with. Talk to us if you need clarification, we are happy to assist you!
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