Dear Valued Client,
Thank you for your engagement as your Company Secretary and Administrator. We trust all exercises went well and everything are all in good ordered.
The above subject refers.
We would like to inform you that there is new regulations implement by our Authorities, whereby all Labuan Companies who is having working permit from the Labuan FSA are required to comply with the regulations as below guided:-
1. To contribute monthly social securities organisation (Socso) of RM49.40 for each person;
The SOCSO has introduce Employment Injury Scheme (EIS) which all foreigners whom had obtained working permit from Labuan or Sdn. Bhd. to pay a monthly contribution of RM49.40 for each person before 15th of the following, as an insurance covers employee in the event of injury during the working hours and may submit claims to the SOCSO.
- Circular on implementation of EIS
- Explanation on Employment Injury Scheme (EIS)
2. To pay monthly tax deduction on the salary receive (ie RM10,000) from the Labuan Company;
The Inland revenue Board Malaysia have extend the requirement to all Labuan incorporated Company to submit monthly tax return for all foreigner whom had draw salary from the Labuan Company (ie working permit holder) to IRB before 15th of the following month. This monthly tax deduction is an advance tax to be paid to IRB and subsequently to refund to the individual if there is any surplus (overpaid tax) during the personal tax filing before 30th April of the following year. which means to say, if the total sum of monthly tax deduction was paid up to IRB at RM25,000 (for example) then by 30th April upon your submission of actual tax return to the IRB and if there is any surplus, the IRB shall return the extra to your personal bank account maintained in Malaysia. The personal tax rate in Malaysia is depend on the tax residency status (ie tax resident – stay more than 182 days or non-tax resident – stay lesser than 182 days) and the tax rate is scale rate (for tax resident) and 28% tax rate (for non-tax resident)
- Frequent ask questioned prepared by Inland Revenue Board Malaysia
- Tax rate for Tax Resident
- Tax rate for Non Tax Resident
in regard to the above requirement, our Company is providing such service to all our existing client at the preferential rate of USD 200.00 for support up to two (2) persons, and any subsequent person shall be charged at USD 100 each. Our service fee cover the scope of works as following:-
- To act as liaison with the authorities for the above two subjects;
- To prepare and calculate the total payable fee to each authority;
- To prepare pay slip for client;
- To submit and arrange payment on behalf of the Company to the authorities; and
- To maintain the filing for future reference.
Should you confirm to engage our services as the above mentioned, we would require you to pay 3 months fee in advance and follow by monthly transfer of payable fee (to be advised after the calculation) to the authorities.