Accounting and Administration service

Bona Trust Corporation provides accounting and Administration support services.

The essence of this service is “Using Money and Buying Time“. Our clients can save time and consequently focus on profitable operations.

using money, buying time

By using our services, you can outsource your non-revenue department and expect to be able to streamline and economic rationalise your business portfolio.

Overview : Accounting and Administration support services
Outsource non-revenue departments to external experts・Your company’s non-revenue department can be separated and the business portfolio can be streamlined

・Surplus personnel can be allocated to the profitable department to optimise the organisational structure

・Maintaining and improving business quality by outsourcing to external specialists

Alternative use of external experts・Can significantly reduce fixed costs

[Ex: Accounting bookkeeping and Administration support services]

Taking a trading company as an example, sales activities aimed at expanding sales channels, approach to large clients etc. should be the core business.

However, in order to maintain and operate the company, at least a back office department such as accounting and administration is allocated, and monthly accounting and administration department operations are required. Especially at the end of the month, the back office department is busy with input (typing) work, and there are many companies that work overtime until late at night.

Such back office work is essentially a non-core business for a trading company and is not directly linked to revenue.

◇ Traditional staffing
Non – Revenue departmentRevenue department
◇ Relocation staffing by utilising external experts
Non – Revenue departmentRevenue department

Therefore, if you shift your human resources to the core department as much as possible and concentrate on higher-value-added work (Work that lead to profit), you will be able to have a more ideal workforce.

Arrangement of surplus personnel by entrusting non-core departments to experts, trouble of input work, time required for input work, reduce wasted time costs, by concentrating management resources on core departments, you can optimise your business portfolio.

This concept is very important as a corporate staffing strategy.

strategy

In this way, by using our services, the business portfolio is optimised, so you can expect the effect of simultaneously realising “Cost Minimise” and “Profit Maximise”.

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1. About Accounting Service

Service target: Clients of Labuan entities with Bona Trust Corporation as company secretary

An effective tax rate of 3% is applied to all entities operating in Labuan, and an accounting audit is required by the end of March each year.

account audit

In preparation for your company’s accounting audit, we will provide a bookkeeping agency support service.

Labuan Taxation system
AttributeTax RateAudit
Trading Activities3% of net audit profitsYES
Non Trading Activities0% (Nil)NO (However, account history information and Management account must be submitted to trust company)
Trading and Non Trading Activities3% of net audit profitsYES

1. Scope of service provision

Our service cover the scope of works as following:-

[Accounting support service] Scope of service provision
・Connection through Dropbox or Email for scan documents.
(Monthly sales invoice, expenses billing & receipts)
・Prepare journal vouchers, coding and bank reconciliation.
・Prepare Profit & Loss, Balance Sheet, General Ledger & Trial Balance
(Full sets management account)
・Review management report and general accounting advisory.
・Financial analyst to provide valuable insight into company’s financial health.

When using the above services, kindly pay the support fee for 6 months in advance. Please refer to the following for support fees.

2. Estimated number of invoices and slips related to charges

Monthly transaction
StatusTransaction
Dormant Status0 (Including cases there is no sales and only payment)
Active Status0-15 transactions per month
Active Status16-50 transactions per month
Active Status51-150 transactions per month)
Active Status150 & above transactions per month)

*Remarks :  Please take notes that the fees may be adjusted accordingly for additional business transactions and services.

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2. About Administration Substitution Work by Labuan Working Permit

Service target: Client of Labuan working Permit subsidiary company with Bona Trust as company secretary

All Labuan Work Permit holders are required to pay the following 2 points as a monthly installment plan:-

Bookkeeping

We offer the following 2 payment support.

Monthly Administration work performed by Labuan Working Permit
1. To contribute monthly social securities organisation (Socso) of RM49.40 for each person
2. To pay monthly tax deduction on the salary receive (ie RM10,000) from the Labuan Company

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

https://www.perkeso.gov.my/images/imej/pekerja_asing/Employers_Circular_No._3_Year_2018.pdf

  • Explanation on Employment Injury Scheme (EIS)

https://www.perkeso.gov.my/index.php/en/social-security-protection/social-security-protection-scheme/employment-injury-scheme

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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

http://lampiran2.hasil.gov.my/pdf/pdfam/FAQ_MTD_Final_Tax_2.pdf

  • Tax rate for Tax Resident

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=2&bt_unit=5000&bt_sequ=11

  • Tax rate for Non Tax Resident

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=1&bt_posi=2&bt_unit=1&bt_sequ=1

Definition of Tax Resident and Non Tax Resident in Malaysia
The definition of tax resident / nonresident in Malaysia is as follows:-

Tax Residentthe number of days in Malaysia is more than 182 days
Non Tax Residentthe number of days in Malaysia is less than 182 days

In Malaysia’s income tax law, regardless of citizenship or nationality, if the number of days in Malaysia is 182 days or more in the previous calendar year will be “tax resident”, if the number of days in Malaysia is less than 182 days in the previous calendar year will be “non tax resident”.

Taxation method for Tax Residents / Non Tax Residents
The taxation method for Tax Residents / Non Tax Residents is as follows.

1. Labuan work permit holder and Malaysian Tax Resident → submit Form BE
More than 182 days in Malaysia

(Ref: “Inland Revenue Board Of Malaysia“)

Progressive taxation on annual salary income
2. Labuan work permit holder and Malaysian Non Tax Resident → submit Form M
Less than 182 days in Malaysia

(Ref: “Non-Resident Tax rate“)

Uniform 28%
3. No Labuan work permit holder and Malaysian Tax Resident → N/A
More than 182 days in Malaysia

(Ref: “Inland Revenue Board Of Malaysia“)

No Applicable [*1]
4. No Labuan work permit holder and Malaysian Non Tax Resident → N/A
Less than 182 days in Malaysia

(Ref: “Non-Resident Tax rate“)

Uniform 28% (Tax deduction application is required based on the system of the country of tax residence)

* 1 Those who fall under the condition of 3 are considered “Malaysian citizens“. For foreigners who fall under this condition, those who hold MM2H visa, dependent visas, student visas, etc. are applicable, but because these are not working visas, these are not allowed to work in Malaysia [ *2]. As it is not possible to receive salary income (domestic source income) unless it is permitted to work, there is no possibility of submitting a tax report form (*3), of course it is obviously not necessary to submit a tax report form.

*2 Since Labuan’s work permit is a special visa to “work with Labuan company” in “Labuan Island”, work in Malaysia is “prohibited in principle”.

* 3 It is possible to receive shareholder dividends or Director Fee, but kindly check with tax experts in your tax country regarding tax payment.

http://lampiran2.hasil.gov.my/pdf/pdfam/FAQ_MTD_Final_Tax_2.pdf

As the above administration, we will provide services as an agency support for up to 2 people.

3. Scope of our service provision

Our service cover the scope of works as following:-

[Administration Agency Support Service] Scope of service provision
  • 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.

If you want to use our service as described above, kindly pay the support fee for 3 months in advance, then receive the monthly fee (notified after the calculation), and we will pay to the government on behalf of you. Kindly contact us for support fees.

Should you have any queries, please do not hesitate to contact us.


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