Labuan Company Strike Off Procedure
You can opt to strike off your Labuan company anytime after the incorporation. The strike off letter will be issued by Labuan FSA once the annual fee owed is unpaid after 8 months to 12 months period. It generates thru the CORAL system which at times may be delayed. With the strike off letter, you can the close the tax file (LE) with the Labuan Inland Revenue Board (IRB).
[Read more: Labuan type of dissolution and penalty]
There are two(2) stages of the complete closure of your Labuan company as follows:
Stage One – Waiting for Labuan FSA Strike Off Notice
The strike off notice is required to close the Corporate Tax File (LE no) with Inland Revenue Board(IRB), often issued after 8th to 10th month from your Labuan company’s Date of Incorporation. Labuan Company Strike Off Procedure
Once you decided to proceed for the strike off service, we will prepare all necessary documents and advise you if there is an outstanding of tax filing with IRB and all other matters (if any) to be done. Labuan Company Strike Off Procedure
There will be Board resolutions for this intend of closure company to be passed and dated, hence, the Labuan company should not any further no business transactions to be taken place during the strike off procedure, unless there is a revoke. Bank accounts can be closed at this stage.
Once the Labuan company in this striking off stage, all directors and shareholders will not be able to register a new Labuan company as their names appeared in the default payments of the current Labuan company.
Labuan FSA will keep all records of the Company for 3 years before they decide to erase them completely from their system.
We can only resign as company secretary once the strike off notice and all corporate tax filing with IRB are completed. Hence, the company secretary fee will be recalculated and apportion accordingly and return to you if any assess.
Stage Two – Lodgement with IRB to close your Corporate Tax (LE) and Employer (E) file (if any)
It is very important to take note since the Labuan company financial year ends on every 31st Dec, you still need to comply the tax filing submission for the previous year and current year (up to the month of the strike-off letter is obtained).
Case example: Labuan Company incorporation date is 15th April 2015. Electronic Strike Off letter issued on 20th Jan 2017.
The tax filing for the year 2015 is in order with IRB. For closure of tax file, required to do up two sets of the financial account to be done is 15th April to 31st Dec 2016 and 1st to 20th Jan 2017 (even though it is a loss or dormant). We will prepare the necessary documents and tax form for the submission for you to sign off also.
For 3% tax option elected- you need to have both accounts to be audited
For RM20,000 tax option elected – you can still pay RM20,000 or have your accounts to be audited to pay 3%
Please liaise with your auditor for your audit report and for the latest information (if any) on this matter. Labuan Company Strike Off Procedure
You will have sufficient time to do up your financial report as long as you submit within the IRB tax timeline which is by 31/3 for the preceding year. We can assist to do the dateline extension up to 31/7 if need.
Once the strike off letter is obtained, we will submit the following documents to IRB within two(2) working days:
1. Your intend letter of application
2. Strike Off Notice
3. Original financial reports of your Labuan company and necessary Tax Form
Please be informed there is no dateline for IRB to reply a formal letter on the closure of the tax file. They will have 7 years’ time frame to look into the file to check if there is any penalty, etc, and reserve the right to ask for documents/info during the process. The proper closure will lead will avoid any penalty from all relevant authorities especially IRB.
For Labuan company who has dealing with Malaysia with ITA Tax File “C”, the strike off letter is required by your local tax agent to close the tax file with the local IRB. The submission requirements and needs please refer to your local tax agent.
Labuan company who is licensed entity will have different closure procedure which will involve Labuan FSA authority to submit relevant reports and the company can only opt for dissolution process.
Do drop us an email to firstname.lastname@example.org should you decide to proceed with the Labuan Company strike off. We “simplify the complexities” of the Labuan company strike off.