Impact of the Malaysia Finance Bill 2018 on Labuan Company | Corporate Services Trust Co Ltd
The new Malaysia Finance Bill 2018 passed on 10 December 2018 now removes the reference to a 97% deduction limitation of the expenditure incurred by Malaysian residents in relation to payments to Labuan company. On 10 December 2018, the lower house of the Malaysia parliament passed the below Bills which concerned Labuan International Business Financial Centre in particular: Finance Bill 2018 Labuan Business Activity Tax (Amendment) Bill Income Tax (Amendment) Bill 2018 These Bills was passed as a result of those proposals in Budget 2019 that was tabled in Parliament on 02 November 2018. All Bills were passed without any amendments, except the Finance Bill 2018 describe in number 1 above. However, it has Not been gazetted yet and usually in Malaysia it will take some time before a law is gazetted and may be up to six months. Whilst many of the players in Labuan was aware on the removal of the ceiling tax of MYR 20,000 but many were caught unaware especially to the proposed 97% of