LABUAN PAYMENT SYSTEM
The idea of having a Payment System is mainly aiming towards cashless transactions. Goods and services are paid electronically, the existence proof of this payment system is such as debit card, credit card, online internet banking and the best renowned Paypal. These fin techs and blockchain are developing fast in various sectors and industries introducing advance and innovative electronic payment system to stay relevant among the consumer base. There is two types of Payment System models which is Single Merchant Payment System and Merchant Community Payment System. Both models can be applicable to Crypto Currencies which may required additional approvals to operate for Crypto Exchange and Initial Coin Token (ICO).
Model 1: SINGLE MERCHANT PAYMENT SYSTEM
The Single Merchant Payment System enables the merchant to have the payment flexibility for the consumer to have more options to make payment for online and offline products, which company can reduce manpower and reduce the risk of loss or theft as there is no cash in hand.
Model 2: MERCHANT COMMUNITY PAYMENT SYSTEM
The Merchant Community Payment System is the model connecting consumers to the merchant’s associates within a community. Payment System unites all merchants in the community by sharing the same system, often using e-wallets mechanism. This enables all merchants to work together in promoting better sales and further promote greater database for future products and events.
Tax Structure For LABUAN PAYMENT SYSTEM
- 100% foreign ownership, no need Malaysian local partners
- TAX only 3% or pay flat fee RM20,000 on Trading Profit
- ZERO Withholding Tax on Interest, Management,, Royalty and Technical Fee
- NO Stamp Duty and GST
- NO Import Duty / Sales/ Service Tax
- NO Capital Gain Tax and Inheritance Tax
- NO Tax on Dividends to Shareholders
- Able to access to more than 70 Malaysia Tax Treaty partners
- 50% Tax abatement for expatriate professionals/managers’ employment
- 100% Tax exemption for director’s fees for foreign directors
- Eligible for two (2) years’ renewal multiple entry work permits for expatriates working in their company to stay in Malaysia
Commercial Substance For Taxing Proof Your Business!
Labuan not only has a similar time zone for Asia Pacific region and easy access, it also offers an affordable cost to operate with easily available of offices, staffs and legal professional supports to comply with CRS (common reporting system) and all other regulations. Marketing Office can be in Kuala Lumpur or Iskandar, Johor.
Eligibility To Apply For Payment System
- Companies with 3 years’ good financial track record with new Payment System model OR Companies with current Payment System
- Proof of Fund: USD 100,000
We provide complete solutions for Labuan Payment System application:
- Advisory, crafting Business Plan, Operation System manuals, AMLAH/KYC manuals
- Due diligence, preparation of all necessary documents for the application form submission to approval follow-up including arranging an interview with Labuan FSA (if any) and compliance officer qualifying
- Set up the right company structure after approval
- Compliance Operation Guidance and System Set Up
- Act as a liaison person
- Bank account set up onshore and offshore
- Operation office set up @ Labuan
- Marketing office set up @ Kuala Lumpur/Iskandar