Labuan Tax For Leasing Business

Labuan Leasing refers to the business of letting or subletting property on hire for the purpose of the use of such property by the hirer. It is business of letting many types of high-value leasing properties which include machinery, equipment, boats, planes – movable and non-moveable items.

Key Tax Profile of Labuan Leasing Business:

* Corporate tax of 3% on net profit
* No withholding tax on dividends, interest, management fee, royalty and technical fees
* No import duty, sales tax, GST, service tax for all international dealings
* For Malaysia dealing, 6% GST is applicable for annual revenue more than RM500,000 
* 0% personal income tax on Directors’ fee for foreign individual or corporate director
* 50% tax rebate on personal income of foreign professional employment
* 65% tax rebate on personal income of local Malaysians professional employment 
* No stamp duty on instruments on Labuan business activities, including the transfer of shares
* No inheritance tax
* Able to access to more than 70 Malaysia’s tax treaty partners
* No foreign exchange control using Labuan offshore bankers
* No tax on interest earned for deposits placement in Labuan offshore banks
* Permitted to set up co-located office anywhere in Malaysia
* Permitted to deal with Malaysian residents with each transaction fee of RM20,000

Example 1

Labuan Tax for Leasing Business

Example 2

Labuan Tax for Leasing Business

Type of ComplianceReporting PartyDue Dates
Annual ReturnLabuan FSA1 month before anniversary of incorpn.date
Annual Company FeeLabuan FSA On and before anniversary of incorpn. date
Corporate Tax Inland RevenueBy 31st March, extendable to 31st May
Employer Return - Form EInland RevenueBy 31st March
Employee Return - Form BE/M for expatriates employmentInland RevenueBy 30th April
Audit ReportLabuan FSAWithin 6 months from closure date of financial account
Marketing Office Fee (if any)Labuan FSA-Fee RM7,500 By 15th Jan
Co-Located Office Fee (if any)Labuan FSA-RM10,000By 15th Jan
Leasing License FeeLabuan FSA-Fee RM60,000by 15th Jan
Statistical ReportingLabuan FSAFrom time to time

Feel free to contact us by completing the enquiry form to explore the best type of Labuan entity to meet your business objectives. We “simplify the complexities” of your Labuan investment.

Name

Email

Nationality

Product/Services You Intend to Sell

Target Market
Malaysia OnlyWorldwide

Capital Amount

Company Structure (present or intended)
100% Foreign-OwnedJoint-Venture with Malaysian

Do You Intend to Set Up Physical Office/Shop in Malaysia?
YesNo

Do You or Your company Require Expatriate Visas?
YesNo

Other Info You Need Us To Know