Do you know about you pay Labuan tax twice?

You want to run your business in Labuan, a city in country Malaysia. So, Labuan tax payment is a very important fact which should be known. Labuan tax services are liberal and help investors to establish their company and business in Malaysia.

The two taxes which are paid are:

  • Corporate tax
  • Personal Income tax

Corporate taxes are the taxes which are to be paid by your company for corporate payments. And personal Income taxes are to be paid on the salary which is derived from company.

Benefits of Labuan tax

  • It provides 100 % ownership and also allows you to control your company on your guidelines. Labuan tax payers can totally own Malaysian business irrespective of being a foreigner.
  • The requirements are minimal in amount in labuan company formation. You need to have one same director, one same shareholder and USD 1 paid up as acapital for your business.
  • If your company is not trading in nature then you don’t have to pay any amount as tax i.e., zero corporate tax.
  • Personal income is also free from taxes as:

Director fee for attending meeting is tax free

Dividend for shareholder has no income tax charged.

  • And now the most important one is:

Labuan trading company lets you stay in Malaysia and regulate your business in that country.

Labuan trading company creation

To set up a company in Labuan you need to consider the details and follow these steps:

  • You need to establish your company.
  • Create a bank account. Your bank account will now be taken in consideration for all kind of tax being paid.
  • Then you have to apply for work permit in Malaysia or Labuan. Also, now you can apply for Visa.
  • Then the application is checked as per the guidelines and regulations.
  • Also, you can get the benefit and more chances of your application to be successful if you have good trade relations with the companies in Labuan or also with companies outside Malaysia.
  • And the kind of currency you use for your business and trade also is considered.
  • The applications are further categorized on the basis of their connections with companies in various cases:-
  1. Case A
  2. Case B
  3. Case C
  4. Case D
  5. Case E

Out of these cases applications under all cases are passed but application in Case E are cancelled and rejected.



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