Formation of Company
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
| Labuan | British Virgin Islands | |
|---|---|---|
| EU Member | No | No |
| Currency Preferred | Any foreign currency except Ringgit Malaysia (MYR) | US Dollar (US$) |
| Corporate Tax Rate | 3% on the audited profit | 0% |
| Capital Gain Tax | 0% | 0% |
| VAT Standard Rate | No SST | No VAT |
| VAT Reduced Rate | No SST | No VAT |
| Tax Return Requirement | Annual Filing required based on taxation scheme selected | No – BVI does not levy corporation tax |
| Tax Return Filing Due Date | End March of the following year | Not Required |
| Tax Residency Requirements | Malaysia | Management and Control to be exercised in BVI |
| Tax rate on dividends from foreign investments | 0% | 0% |
| Withholding tax on dividend payments to foreign shareholders | Not applicable | 0% |
| Tax rate on interest income | 0% | 0% |
| Withholding tax on interest payments to foreign recipients | Not applicable | 0% |
| Tax rate on royalty income | 0% | 0% |
| Stamp duty | No | Yes |
Formation of Company in Labuan versus Cayman Island
| Labuan | Cayman Islands | |
|---|---|---|
| EU Member | No | No |
| Currency Preferred | Any foreign currency except Ringgit Malaysia (MYR) | Cayman Island Dollar (CI$) |
| Corporate Tax Rate | 3% on the audited profit | 0% |
| Capital Gain Tax | 0% | 0% |
| VAT Standard Rate | No SST | No VAT |
| VAT Reduced Rate | No SST | No VAT |
| Tax Return Requirement | Annual Filing required based on taxation scheme selected | Not applicable |
| Tax Return Filing Due Date | End March of the following year | Not Required |
| Tax Residency Requirements | Malaysia | No |
| Tax rate on dividends from foreign investments | 0% | Not Applicable |
| Withholding tax on dividend payments to foreign shareholders | Not applicable | 0% |
| Tax rate on interest income | 0% | 0% |
| Withholding tax on interest payments to foreign recipients | Not applicable | 0% |
| Tax rate on royalty income | 0% | 0% |
| Stamp duty | No | 0% |
Formation of Company in Labuan versus Hong Kong
| Labuan | Hong Kong | |
|---|---|---|
| EU Member | No | No |
| Currency Preferred | Any foreign currency except Ringgit Malaysia (MYR) | Hong Kong Dollar (HKD or HK$) |
| Corporate Tax Rate | 3% on the audited profit | 16.5% |
| Capital Gain Tax | 0% | 0% |
| VAT Standard Rate | No SST | No VAT |
| VAT Reduced Rate | No SST | No VAT |
| Tax Return Requirement | Annual Filing required based on taxation scheme selected | Yes |
| Tax Return Filing Due Date | End March of the following year | End April of the following year |
| Tax Residency Requirements | Malaysia | Management and Control to be exercised in BVI |
| Tax rate on dividends from foreign investments | 0% | 0% |
| Withholding tax on dividend payments to foreign shareholders | Not applicable | 0% |
| Tax rate on interest income | 0% | 16.5% except from deposits in financial institutions in Hong Kong (0%) |
| Withholding tax on interest payments to foreign recipients | Not applicable | 0% |
| Tax rate on royalty income | 0% | 16.5% but reduced rates may apply for certain business class |
| Stamp duty | No | Yes |
Formation of Company in Labuan versus Seychelles
| Labuan | Seychelles | |
|---|---|---|
| EU Member | No | No |
| Currency Preferred | Any foreign currency except Ringgit Malaysia (MYR) | Seychelles Rupee (SCR) |
| Corporate Tax Rate | 3% on the audited profit | IBC – 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 Tax | 0% | 0% |
| VAT Standard Rate | No SST | 15% |
| VAT Reduced Rate | No SST | 0% |
| Tax Return Requirement | Annual Filing required based on taxation scheme selected | Yes |
| Tax Return Filing Due Date | End March of the following year | End March of the following year |
| Tax Residency Requirements | Malaysia | Management and Control to be exercised in Seychelles or voting power to be exercised by shareholders resident in Seychelles |
| Tax rate on dividends from foreign investments | 0% | IBCs – 0% |
| Withholding tax on dividend payments to foreign shareholders | Not applicable | CSLs – 1.5% |
| Tax rate on interest income | 0% | 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 recipients | Not applicable | 15% (0% for IBCs and CSLs) |
| Tax rate on royalty income | 0% | 10% (0% for IBCs and CSLs) |
| Stamp duty | No | 0% |
Formation of Company in Labuan versus Singapore
| Labuan | Singapore | |
|---|---|---|
| EU Member | No | No |
| Currency Preferred | Any foreign currency except Ringgit Malaysia (MYR) | Singapore Dollar (SGD) |
| Corporate Tax Rate | 3% on the audited profit | 17% based on 75% on the first SGD10,000 and 75% of the next SGD290,000 exempted |
| Capital Gain Tax | 0% | 0% |
| VAT Standard Rate | 7% | 0% |
| VAT Reduced Rate | No SST | 0% |
| Tax Return Requirement | Annual Filing required based on taxation scheme selected | Yes |
| Tax Return Filing Due Date | End March of the following year | End November of the following year |
| Tax Residency Requirements | Malaysia | Management and Control to be exercised in Singapore |
| Tax rate on dividends from foreign investments | 0% | 0% if the foreign tax burden is at least 15% and the tax has been paid./td> |
| Withholding tax on dividend payments to foreign shareholders | Not applicable | 0% |
| Tax rate on interest income | 0% | 17% |
| Withholding tax on interest payments to foreign recipients | Not applicable | 0% |
| Tax rate on royalty income | 0% | 15% |
| Stamp duty | No | 0% |