Open an offshore account in Labuan, Malaysia
September 20, 2019
A country in full economic growth, with a very dynamic people, Malaysia has decided to make Labuan, one of its small islands around, an offshore jurisdiction, where investors of all nationalities can open an offshore company to come exercise in peace.
This small Malaysian federal state has become, over the years, a financial center of international renown. The opening of an offshore account is widely encouraged and facilitated.
Low taxation on offshore companies in Labuan
Labuan applies a very low tax rate. As Malaysia has entered into a double taxation agreement with several countries, a foreigner who runs or works for an offshore company in Labuan has the choice to be taxed in Malaysia.
This allows him to avoid the imposition, often heavy, of his country of origin. On the other hand, those who hold portfolios have their income tax-exempt from Malaysia.
Commercial companies can choose to pay an annual flat fee of 6500 euros or a flat tax at a fixed rate of 3%. However, an annual fee of US $ 800 must be paid to the Malaysian state and a statement of account must be presented to the government.
Banking secrecy is mandatory at Labuan and open accounts are completely anonymous.
A simplified offshore account opening procedure
The creation of an offshore company in Labuan is accompanied directly by the opening of a professional and personal bank account, multi-currency.
And no one needs to go there to complete the formality. No bank reference is required and no notarized document is requested. In some banks of Labuan, the online opening of an offshore account can be done in 5 minutes. However, it will be activated only when the minimum deposit of 1000 euros will be effective.
Banks in Labuan offer a secure service for internet banking, as well as international debit cards. It is important to note, however, that since 2015, with the OECD, banks are required to disclose information about clients suspected of tax evasion.