Labuan Corporate Tax

Labuan Corporate Tax

The federal territory of Labuan is a group of tropical islands off the coast of Sabah and was established as Labuan International Business and Financial Centre (Labuan IBFC) to attract international financial activities.  Right from the start, the Malaysian Government had taken pains to avoid the label 'tax haven' for Labuan, and had been vigilant against being used for international money laundering. However, its tax rate of 3% on net profit or a flat amount of RM20, 000 per year clearly calls to mind as a tax haven.

 

Labuan Corporate Tax

Tax Rate in Labuan

The corporate tax of a Labuan company is very flexible and simply by declares as one of the following:

  • Dormant, non-trading and investment holding company – no corporate tax.
  • For trading company, there is 2 tax rate:

(1) A tax rate of 3% on net profit

(2) An amount of RM 20,000 tax regardless of your company turnover

  • For company having business with Malaysia company, it have to pay a 25% of corporate tax (not advisable)

 

All Labuan Company have their financial year end on every year of 31st December. Director has to prepare the management account and audit reports (for tax rate of 3%) submit to Malaysia Inland Revenue.  Company have to maintain management account, complete audit report, filed annual return, tax submission, Form E and Form BE (if applicable) to complete annual compliance procedure.

 

Labuan Non-Trading Activity

Labuan non-trading activities refer to the holding of investments in securities, stocks, shares, loans, deposits or any other by a Labuan entity on its own behalf.

 

Labuan Trading Activity

Labuan trading activities included banking, insurance, trading, management, licensing, shipping operations or any other activities not considered as a Labuan non-trading activity.

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.net http://en.tannet.com.my 

Malaysia Audit report

Malaysia Audit report

An audit report is a written opinion of an auditor regarding an entity's financial statements. The report is written in a standard format, as mandated by Malaysia Audit Act 1957.  When a Company preparing financial statements for completion, they often must contain an auditor's report from an external accountant or auditor. This document evaluates the financial statement's validity and reliability.

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An auditor's report is ultimately intended to provide reasonable assurance that there are no material errors within an organization's financial statements. Auditor's report is useful when the companies are going to loan fund from third parties such as government, bank or new investor.

 

In addition, relevant authorities required every local company to complete their audited account and lodge in with annual return each calendar year. Submission of tax also replies upon on audited account. 

 

Preparation of the auditor's report

After auditing an organization's financial statements, the auditor will prepare their own report where they share their opinion about the validity and reliability of the financial statements.

 

The auditor is expected to provide a true picture of the organization and their financial statements. In the report, they must also state their connection to the financial statements, as well as whether they work for the company externally or internally.

 

The auditor can also express any reservations or additional information that they may have in the auditor's report. For example: if the auditor disagrees with the organization about the valuation of an asset, and they believe that this has a substantial impact on the financial statements, they should state this in their report.

 

The following report variations may be used by a licensed auditor:

  1. A clean opinion, if the financial statements are a fair representation of an entity's financial position.
  2. A qualified opinion, if there were any scope limitations that were imposed upon the auditor's work.
  3. An adverse opinion, if the financial statements were materially misstated.
  4. A disclaimer of opinion, which can be triggered by several situations. For example, the auditor may not be independent, or there is a going concern issue with the auditee.

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.nethttp://en.tannet.com.my

Taxes in Malaysia

Taxes in Malaysia

Income tax in Malaysia is imposed on income accruing in or derived from Malaysia except for income of a resident company carrying on a business of air/sea transport, banking and insurance, which is assessable on a world income scope.

Tax

Who is taxable?

All persons staying in Malaysia for more than 182 days are considered as residents under Malaysian tax law, regardless of nationality. All persons staying less than 182 are regarded non-residents and are taxed on a different scale. Apart from that there is a third group of persons who are exempt from taxation. This applies to those who are employed in Malaysia for less than 60 days in a year, who are aged over 55 years and receive Malaysian pension or persons who are receiving interest from banks.

 

Expatriates who are in Malaysia under the “Malaysia My Second Home Programme” (MM2H) are not required to pay tax on their pension or income remitted from abroad. Apart from this, all income achieved in or derived to Malaysia is liable to tax.

 

Malaysia has an Agreement for the Avoidance of Double Taxation for several countries. For further details, you may go the website of the Malaysian Inland Revenue Board

 

Taxes in Malaysia

1) Corporate Income Tax

A company, whether resident or not, is assessable on income accrued in or derived from Malaysia. The current corporate income tax rate (for assessment year 2008) is 26%. The rate will be further reduced to 25% for assessment year 2009. A company carrying on petroleum upstream operations is subject to a Petroleum Income Tax of 38%. Currently, corporate tax is based on the imputation system. With effect from assessment year 2008, the current imputation tax system will be replaced, over a transition period of 6 year, with a single-tier tax system. Under the single-tier system, profits are taxed only at the company’s level and dividends received are exempted from tax.

 

2) Personal Income Tax

Whether an individual is a “resident” in Malaysia under the Malaysian Income Tax Act 1967 is determined by the duration of his stay in the country. Generally, an individual residing in Malaysia for 182 days or more in a year has resident status. A resident individual is taxed on his chargeable income at a graduated rate from 0% to 28% after deducting relevant tax relief. There are also available tax rebates. A non-resident individual is liable to tax (on income earned in Malaysia) at the rate of 28% without any personal relief.

 

3) Withholding Tax

Withholding tax is imposed on certain payments made by residents to non-residents such as interest, royalty, technical fees and rentals for moveable properties. The resident has the obligation to withhold tax when making the payments and to pay the amount within a certain time, failing which the resident is liable to pay a penalty equal to 10% of the unpaid tax and the total sum shall be a debt due to the Government. Due to double tax agreements, residents in some countries may enjoy exemption or reduced withholding tax rates.

 

4) Other Taxes

Sales Tax is imposed at the import or manufacturing levels at a general rate of 10%.

Service Tax applies to certain prescribed goods and services, including certain professional and consultancy services in Malaysia, at a general rate of 5%.

Import duty is imposed at ad valorem generally.

Excise duties are levied on selected products manufactured in Malaysia.

Stamp duty is imposed on various written legal documents that are executed in Malaysia. For documents executed outside Malaysia, stamp duty is applicable if the document purports to affect a transfer of subject matter in Malaysia.

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.nethttp://en.tannet.com.my

The advantages and disadvantages of outsource accounting in Malaysia

The advantages and disadvantages of outsource accounting in Malaysia

Malaysia Outsourcing Accounting Services, Tannet group offer clients a full range of book keeping and accounting services in Malaysia to a wide range of clients operating across a broad spectrum of commercial, industrial, professional and non-profit sectors.


Accounting.

Advantages of Outsource Malaysia Accounting

1) It will strengthen your competitive advantage.

2) Our customized service will help you to fulfill your desires.

3) It will reduce your operating cost by providing efficient accounting services with low cost.

4) It will save your time and efforts from managing your accounting department.

5) It will provide high data accuracy which will make your business error free.

6) It will provide high privacy and security which will make you feel comfortable.

7) Our smart time management will help your work done just in time.

8) Our reliable service will let you free and concentrate more on your core business.

9) It will make your business free from the hassles of managing employees and records.

10) We will provide you innovative and creative solutions which will make your business latest and updated.

 

Disadvantages of Outsource of Malaysia Accounting

1) Take longer time for communication as the experts don’t work physically in your office.

2) Slow in respond if there is any problem as it takes time for the expert’s team to look back to your file.

3) Lack of security on confidential information as you have to send all your financial information and records to an outside provider.

4) Less control of your own account as different provider work in different ways and method.

 

In a nutshell, the pros of outsourcing are better than in-house accounting. The cons of outsourcing could be solves by choosing a good and quality provider to avoid any uncertain risk.  Our services included:

1. Account Reconciliation

2. General Ledger Maintenance

3. Payroll Processing and Administration

4. Cash Flow Management

5. Filing account documents

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP:   http://www.tannet-group.nethttp://en.tannet.com.my

Outsource Payroll Services

Outsource Payroll Services

Payroll is the sum of all financial records of salaries for an employee, wages, bonuses and deductions. In accounting, payroll refers to the amount paid to employees for services they provided during a certain period of time. Businesses may decide to outsource their payroll functions to third party for better management.

Outsource Payroll Services

Advantages of Outsourcing :

  1. Time Savings – Payroll processing inside your business is a time-consuming process. Outsourcing payroll allows employers to concentrate on their core business and frees up the business owner, human resources or accounting personnel to work more on strategic tasks that could ultimately affect your bottom line.
  2. Reduce Costs – The direct costs of processing payroll can be greatly reduced by working with a payroll provider.  If you outsource payroll, you don’t have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation OR wanting to request a possible maternity leave that you have to pay for.
  3. Avoid Mistakes / Penalty – A good payroll-services provider is far less likely to make a serious error than your in-house staff. Many outsourced payroll providers calculate payroll taxes, manage filings and payments and will assume the cost of penalties due to incorrect calculations or late payments as long as you provide the necessary information and funds on time.
  4. Team of Experts – By outsourcing payroll, a small business can take advantage of the experts. The most valuable payroll companies have a team of experts who handle many areas of Human Resources and Payroll.
  5. Reliable & Enhanced Security – Payroll processing is a complex and potentially risky business operation. Even with long time trusted employees, there is always a risk of identity theft, embezzlement of funds, or tampering with company files for personal gain. By outsource to the reliable payroll provider, business owner don't have to worried on this.
  6. Peace of Mind – With the help of a professional payroll service provider, the hassle and pain often associated with processing payroll is gone. You provide the basic information, and your payroll company takes care of the rest. you can eliminate the worry that many experience when it comes to paying employees and taxes correctly and on time

 

For a foreign investors stepping into a new market (China, Hong Kong and Malaysia), they may require a reliable agent to deal with the human resource management because it takes much time and energy. Tannet Malaysia can assist corporate with combining human resources and development strategy, to effectively enhance enterprises' results and benefits, and help enterprises to design flexible and encouraging remuneration packages, to increase employee's working capacity and sense of belonging.

 

Contact us
If you have further queries, please contact Tannet
24 hours Malaysia hotline:603-21418908;
24 hours Hong Kong hotline:852-27837818;
24 hours Hong Kong hotline:86-755- 36990589;
Email: mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.nethttp://en.tannet.com.my

Malaysia Tax Filing Services

Malaysia Tax Filing Services

Malaysia Tax Filing Services is a service to process of preparing tax returns, often income tax returns, often for a company other than a person. Tax preparation may be done by the taxpayer with the help of a licensed professional such as licensed authorized company, certified public accountant or enrolled agent. Below refers to some common questions that are frequently asked:

 

1.Do I Need to File?

• You must file a federal income tax return if you have own private company (SDN BHD).

• The amount you owe varies depending on your filing status, age, the kind of income you have, and other factors.

• Answer some easy questions to see if you need to file.

 

2.How Do I File?

• Find a professional preparer.

• If you have employees, file employment taxes.

 

3.What If I File Late?

• Think your taxes won't be finished on time? File for an extension of time to file.

• Find out what can happen if you file late.

• Alternative payment plans are available.

TaxIn Malaysia, individuals and businesses can use e-Filing to carry out their annual tax assessment. Known in short as e-Filing, the Malaysian IRB (Inland Revenue Board) operates its online system through its e.hasil.gov.my website. Before preparing tax return, it is a must to do accounting, in term of means to accumulate and report on financial information about the performance, financial position, and cash flows of a business. After that, IRB rely on audited financial statements to determine the accuracy of tax returns filed by the companies.

 

On the other hand, for income earners with business income would need to submit their forms latest by the 30th of June each year. The same procedure will be applicable for both these income earner. However, business income earners might have to pay a lump sum to income tax as they might not have adopted the PCB method.

 

There are several types of forms that you will be needed to submit. The BE form is for individuals who do not have any business sources. This is the most common form that is used by those who earn a monthly salary. The B Form is for individuals who own a business. The M form is for non-residents who are working with a monthly salary. This refers to individuals who are not citizens while he MT form is for those who own a business in Malaysia. The P Form meanwhile is meant for those who are in a partnership business.

 

Our Malaysia Tax Filing Services included:

1. Personal tax planning in Malaysia and submission of personal & business income tax

2. Malaysia Enterprises tax planning, preparation and submission of company tax returns

3. Multilateral trade tax planning

4. Accounting, auditing and tax preparation

5. Minimization of tax liabilities

 

Contact Us

If you have further queries, please contact Tannet

24 hours Malaysia hotline:603-21418908;

24 hours Hong Kong hotline:852-27837818;

24 hours China hotline:86-755- 36990589;

Email: mytannet@gmail.com

TANNET GROUP: http://www.tannet-group.net , http://en.tannet.com.my