Advantages of setting up an offshore company in Labuan
Why should you consider setting up a company in Labuan ?
Straightforward and advantageous tax system
- Minimum tax on Labuan trading company upon election annually:
- 3% of net profits as per audited accounts；or
- RM20,000 (USD5,000)
- 0% tax on Labuan Non-Trading activities (Investment Activities)
- Double Tax Agreements (Treaties) with over 70 countries
- Withholding tax exemption on payments made to non-residents
- No import duty / sales tax / capital gain tax
- 50% tax abatement for expatriate professionals and managers employed under Labuan companies
- No stamp duty on all instruments relating to offshore business activities including share transfer
- 100% exemption for director’s fees received by non-citizen directors of Labuan companies
- No foreign exchange controls
- Strategically situated in the Asia Pacific region and sharing a common time zone with many large Asian cities
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