Formation of Company

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Introducing the business benefits through Labuan.

  • Formation of Company in Labuan versus British Virgin Island
  • Formation of Company in Labuan versus Cayman Island
  • Formation of Company in Labuan versus Hong Kong
  • Formation of Company in Labuan versus Seychelles
  • Formation of Company in Labuan versus Singapore

Formation of Company in Labuan versus British Virgin Island

LabuanBritish Virgin Islands
EU MemberNoNo
Currency PreferredAny foreign currency except Ringgit Malaysia (MYR)US Dollar (US$)
Corporate Tax Rate3% on the audited profit OR RM20,000 flat on annual election basis0%
Capital Gain Tax0%0%
VAT Standard RateNo SSTNo VAT
VAT Reduced RateNo SSTNo VAT
Tax Return RequirementAnnual Filing required based on taxation scheme selectedNo – BVI does not levy corporation tax
Tax Return Filing Due DateEnd March of the following yearNot Required
Tax Residency RequirementsMalaysiaManagement and Control to be exercised in BVI
Tax rate on dividends from foreign investments0%0%
Withholding tax on dividend payments to foreign shareholdersNot applicable0%
Tax rate on interest income0%0%
Withholding tax on interest payments to foreign recipientsNot applicable0%
Tax rate on royalty income0%0%
Stamp dutyNoYes

Formation of Company in Labuan versus Cayman Island

LabuanCayman Islands
EU MemberNoNo
Currency PreferredAny foreign currency except Ringgit Malaysia (MYR)Cayman Island Dollar (CI$)
Corporate Tax Rate3% on the audited profit OR RM20,000 flat on annual election basis0%
Capital Gain Tax0%0%
VAT Standard RateNo SSTNo VAT
VAT Reduced RateNo SSTNo VAT
Tax Return RequirementAnnual Filing required based on taxation scheme selectedNot applicable
Tax Return Filing Due DateEnd March of the following yearNot Required
Tax Residency RequirementsMalaysiaNo
Tax rate on dividends from foreign investments0%Not Applicable
Withholding tax on dividend payments to foreign shareholdersNot applicable0%
Tax rate on interest income0%0%
Withholding tax on interest payments to foreign recipientsNot applicable0%
Tax rate on royalty income0%0%
Stamp dutyNo0%

Formation of Company in Labuan versus Hong Kong

LabuanHong Kong
EU MemberNoNo
Currency PreferredAny foreign currency except Ringgit Malaysia (MYR)Hong Kong Dollar (HKD or HK$)
Corporate Tax Rate3% on the audited profit OR RM20,000 flat on annual election basis16.5%
Capital Gain Tax0%0%
VAT Standard RateNo SSTNo VAT
VAT Reduced RateNo SSTNo VAT
Tax Return RequirementAnnual Filing required based on taxation scheme selectedYes
Tax Return Filing Due DateEnd March of the following yearEnd April of the following year
Tax Residency RequirementsMalaysiaManagement and Control to be exercised in BVI
Tax rate on dividends from foreign investments0%0%
Withholding tax on dividend payments to foreign shareholdersNot applicable0%
Tax rate on interest income0%16.5% except from deposits in financial institutions in Hong Kong (0%)
Withholding tax on interest payments to foreign recipientsNot applicable0%
Tax rate on royalty income0%16.5% but reduced rates may apply for certain business class
Stamp dutyNoYes

Formation of Company in Labuan versus Seychelles

LabuanSeychelles
EU MemberNoNo
Currency PreferredAny foreign currency except Ringgit Malaysia (MYR)Seychelles Rupee (SCR)
Corporate Tax Rate3% on the audited profit OR RM20,000 flat on annual election basisIBC – 0%
CSLs – 1.5%
Other companies (business tax) – 25% on first SCR1,000,000 and 30% on remaining amount for the exception of several exempted financial institutions, telecom companies, alcohol producers and etc – 33%
Capital Gain Tax0%0%
VAT Standard RateNo SST15%
VAT Reduced RateNo SST0%
Tax Return RequirementAnnual Filing required based on taxation scheme selectedYes
Tax Return Filing Due DateEnd March of the following yearEnd March of the following year
Tax Residency RequirementsMalaysiaManagement and Control to be exercised in Seychelles or voting power to be exercised by shareholders resident in Seychelles
Tax rate on dividends from foreign investments0%IBCs – 0%
Withholding tax on dividend payments to foreign shareholdersNot applicableCSLs – 1.5%
Tax rate on interest income0%Other companies (business tax) – 25% on first SCR1,000,000 and 30% on remaining amount for the exception of several exempted financial institutions, telecom companies, alcohol producers and etc – 33%
Withholding tax on interest payments to foreign recipientsNot applicable15% (0% for IBCs and CSLs)
Tax rate on royalty income0%10% (0% for IBCs and CSLs)
Stamp dutyNo0%

Formation of Company in Labuan versus Singapore

LabuanSingapore
EU MemberNoNo
Currency PreferredAny foreign currency except Ringgit Malaysia (MYR)Singapore Dollar (SGD)
Corporate Tax Rate3% on the audited profit OR RM20,000 flat on annual election basis17% based on 75% on the first SGD10,000 and 75% of the next SGD290,000 exempted
Capital Gain Tax0%0%
VAT Standard Rate7%0%
VAT Reduced RateNo SST0%
Tax Return RequirementAnnual Filing required based on taxation scheme selectedYes
Tax Return Filing Due DateEnd March of the following yearEnd November of the following year
Tax Residency RequirementsMalaysiaManagement and Control to be exercised in Singapore
Tax rate on dividends from foreign investments0%0% if the foreign tax burden is at least 15% and the tax has been paid./td>
Withholding tax on dividend payments to foreign shareholdersNot applicable0%
Tax rate on interest income0%17%
Withholding tax on interest payments to foreign recipientsNot applicable0%
Tax rate on royalty income0%15%
Stamp dutyNo0%