Labuan, Malaysia (Business Activities)(Code:20 Other Trading Entity)

GENERAL INFORMATION

Under Item 20 of the First Schedule of the Regulation, the following activities are recognized:

1. Administrative Services
Includes employee management, payroll, property management, HR, financial planning, contract management, facilities, and proposal management.

2. Accounting Services
Recording, analyzing, summarizing, and classifying financial, commercial, and business transactions.

3. Legal Services

• Conveyancing services,

• legal advisory,

• litigation services or legal representation services in any proceedings before any court, tribunal or other authority; or

• legal dispute resolution services including alternative dispute resolution methods.

4. Backroom Processing Services
Involves settlements, record maintenance, regulatory compliance, IT services, and administrative support functions.

5. Payroll Services
Processing and managing remuneration, benefits, taxes, statutory payments, and issuing payslips or tax statements.

6. Talent Management Services
Attracting, onboarding, developing, and retaining employees.

7. Agency Services
Providing specific services on behalf of another entity under an agency agreement.

8. Insolvency Services
Managing company liquidations, winding up, or personal bankruptcy.

9. Management Services
Organizing, planning, controlling, and directing resources (human, financial, and technological) to achieve business objectives.

Labuan Tax Compliance

To Enjoy 3% Tax Rate:

• Employ at least two full-time employees in Labuan.

• Maintain annual operating expenses of at least MYR 50,000 in Labuan.

If Non-Compliance:

• The company can operate but will be subject to a 24% tax rate instead of the 3% rate.