Labuan is a mid-shore
jurisdiction, as part of
Malaysia. It is well-
supported by a robust,
modern and internationally-recognised legal framework enforced by its regulator, Labuan Financial Services
Authority (Labuan FSA). This jurisdiction provides a wide range of business and investment structures for
cross-border transactions,
international business dealings and wealth management demands.
TAX HEAVEN
Previously, reason of people setting up an offshore company is to take advantage of favorable tax law or its less stringent regulatory provisions. However, the growing international push for transparency and exchange of information amongst jurisdictions for tax purpose, with the implementation of common reporting system by most of the country now has push the paper company about to end. Business founder need to prove their operation is truly located in that jurisdiction to enjoy the tax. If you have a business in offshore jurisdiction that with high operation cost, far from your mother, you should consider Labuan, Malaysia. If you have a business in offshore jurisdiction that with high operation cost, you should consider Labuan, Malaysia.
Previously, reason of people setting up an offshore company is to take advantage of favorable tax law or its less stringent regulatory provisions. However, the growing international push for transparency and exchange of information amongst jurisdictions for tax purpose, with the implementation of common reporting system by most of the country now has push the paper company about to end. Business founder need to prove their operation is truly located in that jurisdiction to enjoy the tax. If you have a business in offshore jurisdiction that with high operation cost, far from your mother, you should consider Labuan, Malaysia. If you have a business in offshore jurisdiction that with high operation cost, you should consider Labuan, Malaysia.
If you have a business in offshore jurisdiction that with high operation cost, you should consider Labuan, Malaysia.
WHY SHIFT TO LABUAN
Tax frаmеwоrk
WHY SHIFT TO LABUAN
Tax frаmеwоrk
- 3% tаx is charged fоr a уеаr оf assessment оn thе net audited profits
- Withhоlding taxes on рауmеntѕ tо non-resident реrѕоnѕ
- Mоrе thаn 70 tаx trеаtiеѕ раrtnеrѕ (Dоublе Tax Agreement)
- 100% fоrеign ownership without extra tax
Low Operation Cost
| Monthly Expenses Items | Average Price | |
|---|---|---|
| Fully furnished office includes utilities | RM1300/month | USD325/month |
| Salary for fresh graduate | RM1500/month | USD375/month |
| Salary for skilled worker | RM2800/month | USD700/month |
| Company backed support (account, HR, admin) | RM1500/month | USD375/month |
| Total | RM7100 | USD1775 |
| Additional Cost | Average Price | |
|---|---|---|
| Air ticket from Kuala Lumpur - Labuan (both way) | RM350 | USD88 |
| Accommodation /night | RM160 | USD40 |
| Company backed support (account, HR, admin) | RM8000 | USD2000 |
Conclusion
Labuan is considerably more affordable than other off/mid-shore destinations. The island is well situated between China and India as well as many of ASEAN’s financial hubs to take
advantage of trade by sea as well as offshore services. If you are the owner of a foreign company looking for a jurisdiction that is low tax regime, low operation cost with access to skilled workers, reasonable price for substance creation, stable political environment and looking to establish in ASEAN, you may look to Labuan as an establishing platform. You can redomiciling your company, set up a brunch or subsidiary in Labuan.
Disclaimer: The information provided does not constitute legal advice. You should obtain specific legal advice from a lawyer before taking any legal action. Although we try our best to ensure the accuracy of the information on this website, you rely on it at your own risk.