Every company have to complete the annual filing compliance as regulated by the local relevant authorities such as file annual return, held AGM, keep a proper record of accounting and information in the registered office and etc. Fail to comply all this annual procedure, the company and every officer of the company who is in default shall be guilty of an offence against to the Labuan Act.
Annual Return Filing
A Labuan company shall make an annual return containing the company particulars and accompanied by such copies of documents as are required to be included in the return. The return of a Labuan company not having a share capital shall contain the following particulars:
(a) The address of the registered office of the Labuan Company;
(b) Where the register of members is kept elsewhere than at that the registered office of the Labuan company, the address of the place where the register is kept;
(c) Particulars of the total amount of indebtedness of the Labuan company in respect of all charges, whether required to be registered with the Authority or not;
(d) all such particulars with respect to the persons who on the day to which the return is made up are the directors, managers or secretaries of the Labuan company as are required to be contained in the register of directors, managers and secretaries;
(e) The name and address of the auditor of the Labuan company; and
(f) Such other matters relating to the accounts of the Labuan Company;
** Fail to comply this Act, there is a penalty incur.
Maintenance of Company Secretary
There is a service fee is payable for maintenance your company secretary, registered office and submission of annual return to the LFSA. Yearly renewal of company must be done before one month of your company anniversary date.
Completed Management Account and Taxation
A Labuan company shall cause to be kept proper accounting and other records as will sufficiently explain the transaction and financial position of the company. If the company is elect for 3% of corporate tax on net profit, an audit report is required whereas for election of MYR 20,000 tax payable, no audit is required. Non-trading / dormant / holding investment company is paying 0% tax. Financial year end for all Labuan Company is fall on every 31th of December.
Individual tax filling is payable when company pay income to employee, depend on their residential status. Non- taxable for all foreign source income receive by a non-Malaysia citizen of a Labuan entity. The rate of tax ranges from 0% to 26% for resident individuals and a flat rate of 26% for non-resident individuals.
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