Labuan Company Experience

[Xshore]

With the EP you can live anywhere in west Malaysia

Interestingly from the FAQ they state:

15. If the Labuan entity only has a management office in Labuan, where must the residential address of the work permit holder be located?

The residential address of the work-permit holder must be in Labuan.

 

[Moonlighter]

Please keep in mind that the FAQ is from 2015, so some parts are already outdated. While you can live in west Malaysia, in 2015 you had to provide a Labuan tenancy contract, which was a document organised by the trust companies. All in all just another fee and few years later they accepted a tenancy contract from Kuala Lumpur during the renewal process.

Since Labuan requires a trust company as intermediary, I suggest you consult one of those companies for recent information.

 

[Xshore]

Please keep in mind that the FAQ is from 2015, so some parts are already outdated. While you can live in west Malaysia, in 2015 you had to provide a Labuan tenancy contract, which was a document organised by the trust companies. All in all just another fee and few years later they accepted a tenancy contract from Kuala Lumpur during the renewal process.

Since Labuan requires a trust company as intermediary, I suggest you consult one of those companies for recent information.

Ok, you said the 250k deposit for the EP based on this FAQ. But we can just disregard this info then, and hear from OP that have actually done this recently.

 

[Xshore]

From next year Malaysia will start with a 2% tax on dividends, which would affect you if you take dividends from the labuan company. Making the total tax in labuan roughly 5% if you pay our the profit as dividends.

 

[Xshore]

From next year Malaysia will start with a 2% tax on dividends, which would affect you if you take dividends from the labuan company. Making the total tax in labuan roughly 5% if you pay our the profit as dividends.

Another articles says labuan entities will be exempt (as will foreign entities).

 

[Moonlighter]

Labuan dividends are exempted and foreign sourced income that is not transmitted to Malaysia will stay tax free until 2036.

https://www.ey.com/content/dam/ey-u.../documents/ey-take5-budget2025-18oct-2024.pdf

 

[Xshore]

Labuan dividends are exempted and foreign sourced income that is not transmitted to Malaysia will stay tax free until 2036.

https://www.ey.com/content/dam/ey-u.../documents/ey-take5-budget2025-18oct-2024.pdf

The extention of the exception to 2036 refers to income that is remitted to Malaysia (with some requirement). Foreign source income that is not remitted to Malaysia is never taxed (unless this changes).