Please enable JavaScript.

Coggle requires JavaScript to display documents.

29 Labuan - Coggle Diagram

- - - - each YA, file
        
        a Return of Profits
        
        a Statutory Declaration
        
        tax 3% based on audited NP
      - zakat pd will be granted rebate agnst tax payable
        
        3%/24% of audited NP
        
        RM 20,000
      - excess rebate, X refund, X c/f, is a permanent loss
    - - submit Statutory Declaration only
    - - a person willfully or negligently makes an incorrect/false statutory declaration,
        shall be liable to a fine <=RM 1m and/or imprisonment for 3 years
- - - - IF satisfy Substantial Activities Requirement on chargeable profits
        (audited NP, excluding taz, zakat, royalty or any Y from IP rights)
      - ie. banking, insurance, trading, mgmt, licensing
    - - IF cannot satisfy Substantial Activities Requirements
  - - - recognized for tax treaty purpose
        
        some countries w tax treaty w Msia
        have excluded Labuan for tax treaty benefits
      - ensure tax benefits from double tax treaty > additional tax Labuan entity may suffer
- - - - must carry out biz activity listed in Substance Requirements Order (SRO)
        
        Labuan insurer, reinsurer, takaful and retakaful
        
        Labuan underwriting manager or underwriting takaful manager
        
        Labuan insurance manager or takaful manager
        
        Labuan insurance broker or takaful broker
      - can be carried out in foreign currencies or in Ringgit with R or NR
      - biz actv NOT in the list above, tax under ITA at 24%
    - - activity relating to holding of investments in securities, stk, sh, loan, deposits or any other prop situated in Labuan by a Labuan entity on its own or behalf
    - - Labuan entity to have an 'adequate' no of full time em'ee who serve the entity in Labuan
      - Labuan entity to have an 'adequate' amt of annual operating exp incurred in Labuan
        ie. prof & statutory fee, license fee, service provider's fee
      - this requirement is to checked every year
      - failure to fulfils renders the Labuan entity to be taxed under LBATA at 24%
- - - - Instruments executed by a Labuan entity on Labuan biz activities
      - Instruments in respect of establishment of Labuan entity
      - Transfer of shares in a Labuan entity