Accounting and Administration Service
Bona Trust Corporation provides accounting and administrative support services for Labuan companies.
The essence of our service is ‘Use money for buying time‘. Our clients are able to free up own time and consequently focus on more profitable tasks.
By utilising our services, you can outsource your company’s non-revenue-generating departments and streamline and rationalise your business portfolio.
|Overview of Accounting and General administration support services|
|Outsource non-revenue-generating departments to external specialists||・Streamlining of the business portfolio by separating out non-revenue-generating divisions of the company.
・Optimise your organisational structure by allocating redundant staff to profit-making departments.
・Outsourcing to external specialists enables the quality of operations to be maintained and improved; alternative use of external personnel; fixed costs can be significantly reduced.
|Alternative use of external personnel||・Significant reduction in fixed costs|
【Examples of the use of accounting bookkeeping and general administration support services】
Taking a trading company as an example, the core area of business should essentially be sales activities to expand sales channels and approach large customers.
However, in order to maintain and operate the company, at least back-office departments such as accounting and general affairs must be deployed, and monthly accounting and general affairs work is required. Especially at the end of the month, the back-office departments are often busy with input work, and many companies work overtime until late at night.
Such back-office work is essentially a non-core area for trading companies and is not directly linked to profits.
|◇ Conventional staffing|
|Non-profit sector||Profit sector|
|◇ Reallocation of personnel through the use of external experts|
|Non-profit sector||Profit sector|
Therefore, your company’s human resources can be more ideally deployed by shifting as much of them as possible to core departments and concentrating them on higher value-added tasks.
This is because outsourcing non-core departments to specialists reduces unnecessary time costs such as redundancies, time and effort spent on input work, and optimises the business portfolio by concentrating management resources on core departments.
This concept is very important for a company’s staffing strategy.
In this way, by using our services, you can optimise your business portfolio and can expect to realise the effects of ‘minimising costs’ and ‘maximising profits’ at the same time.
1. About the Labuan Corporate Accounting and Bookkeeping Service
Service target for: clients of Labuan entities with our company BonaTrust as company secretary.
All business entities doing business in Labuan are subject to a 3% rate of execution and are required to have their accounts audited by the end of March each year.
We offer bookkeeping support services in preparation for your company’s accounting audit.
|Taxation regime of Labuan companies|
|Attributes||Applicable tax rates||Audited accounts|
|Labuan companies with commercial activities||3% of audited net profit||Necessary|
|Labuan companies with no commercial activities||0% (tax-exempt)||Not required (but account history information must be submitted to the trust company)|
|Labuan companies with both activities||3% of audited net profit||Necessary|
1. Scope of our services
Our services cover the scope of your company’s business as follows: –
|[Bookkeeping support service] Scope of services|
|・Acceptance of scanned document data by connection via Dropbox or email etc. (e.g. monthly sales invoices, expense claims and receipts).|
|・Sorting slips, coding and bank reconciliations.|
|・Preparation of profit and loss statements (P/L), balance sheets (B/S), general ledgers (G/L) and trial balances.
* We use Sage UBS accounting software（Ref：「UBS Software」）。
|・Management reports and general accounting advisory.|
|・As an external accountant, we provide consultancy on the financial health of the company.|
If you wish to use the above services, please pay the support fee for six months in advance. For support fees, please refer to the following and contact our Support Desk.
2. Approximate number of slips on charges
|Approximate monthly transactions (number of transactions)|
|Status||Number of transactions|
|Dormant Status||0 (including cases where there are no sales, only payments)|
|Active Status||0-15 transactions / month Active Status|
|Active Status||16 – 50 / month Active Status|
|Active Status||51 – 150 cases / month Active Status|
|Active Status||150 or more / month|
※ Kindly note that fees may be readjusted according to additional transactions or services.
※ The audit of the Labuan entity’s accounts is different from that of mainland Malaysia. In mainland Malaysia, the Inland Revenue Board (IRB) may conduct a tax audit after a tax return has been filed, whereas in Labuan, the audit company assumes all responsibility and all procedures for the financial year are completed upon completion of the audit (the Inland Revenue Board does not intervene in Labuan’s accounting audits). The Internal Revenue Service is non-interventionist). Therefore, while there is no risk of additional taxation, audits tend to be slightly more stringent, so please ensure that you do your daily bookkeeping.
2. About the general administration service for work visa holders
Service target for: clients of companies with Labuan work visas attached, with our company Bonatrust as company secretary.
All Labuan work permit holders are required to pay the following two monthly instalments.
We provide payment support for the following 2 payments on behalf of our clients
|Monthly administrative tasks to be carried out by Labuan work permit attachedcompanies.|
|1. To pay RM49.40/month per work visa holder to the Social Security Organisation (SOCSO)|
|2. Making monthly instalment tax payment on the salary income (= RM10,000) received from the Labuan corporation.|
1. To pay RM49.40/month per work visa holder to the Social Security Organisation (SOCSO)
SOCSO is an Employment Injury Scheme (EIS) adopted by all foreigners who have obtained a work visa from a Labuan or Malaysian company. In the event of an accidental injury during the working hours of the foreign director concerned, the insurance covers the employee, who is required to submit a claim to SOCSO, and is required to pay a contribution of RM49.40/month each by the 15th of every month.
[Employment Injury Scheme (EIS) description]
The Employment Injury Scheme provides protection for employees against accidents or occupational illnesses arising out of or in the course of their employment. The scope of protection under the scheme includes.
◇ Industrial accidents
◇ Commuting accidents
Accidents occurring on the route between the place of residence or stay and the workplace
Travel occurring for any reason directly related to employment (e.g. business trips)
Travel between the workplace and the place where the employee eats during breaks.
Note: Accidents occurring during work interruptions or deviations from work arise out of employment and are not considered accidents occurring during employment.
◇ Accidents during emergencies
・Accidents that occur in an emergency at an employer’s premises in the course of assisting, rescuing or protecting others from disaster or danger in an emergency.
◇ Occupational illnesses
・Sicknesses are those caused by occupation, as described in the Fifth Employees’ Social Security Act of 1969.
・Occupational illnesses include:
– Hearing loss due to continuous excessive noise exposure.
– Occupational asthma due to work involving continuous exposure to inhalation, e.g. dust or hazardous chemicals
〇 Benefits of the Employment Injury Scheme
・Temporary disability benefits
・Permanent disability benefits
・Facilities for physical/vocational rehabilitation
・Benefits for education.
Ref：official Malaysian Government website「Employment Injury Scheme」
[Circular on the implementation of the EIS] (in English)
2. Making monthly instalment tax payment on the salary income (= RM10,000) received from the Labuan company.
The Malaysian Inland Revenue Board (IRB) requires all foreign nationals holding a work permit to submit monthly tax returns by the 15th of the following month for salaries received from Labuan companies. Monthly tax credits are paid to the IRB once any surplus (overpaid tax) is available during the individual’s tax return by 30 April of the following year, which is then refunded to the director individual.
For example, if the total monthly tax credit is paid to IRB up to RM25,000, and then the actual tax return is submitted to IRB by 30 April and there is an overpayment, IRB will take action to refund the additional amount to the director’s personal account opened in Malaysia.
Personal income tax rates in Malaysia vary depending on whether you are tax resident or not (i.e. either ‘tax resident – in Malaysia for more than 182 days in a calendar year’ or ‘non-tax resident – in Malaysia for less than 182 days in a calendar year’). For more information, kindly see the diagram below.
|◇ Definition of resident and non-resident for tax purposes ◇|
|The definitions of resident and non-resident for tax purposes are as follows.
Under Malaysian income tax law, regardless of citizenship or nationality, a person is tax resident if they have been in Malaysia for 182 days or more in the previous calendar year, and tax non-resident if they have been in Malaysia for less than 182 days in the previous calendar year.
The taxation of Malaysian residents and non-residents is as follows: –
|1. [If you hold a Labuan work visa and are a resident of Malaysia] → Submit Form BE.|
|2. [If you hold a Labuan work visa and are a non-resident of Malaysia] → Submit Form M.|
Ref: ‘Salary Income of Directors‘.
Frequently Asked Questions (prepared by the Malaysian Inland Revenue Commission) (in English)
As the above-mentioned general administration agency support, we offer our services as agency support for up to 2 persons.
3. Scope of our service provision
Our services cover your company’s scope of work as follows: –
|[Scope of services]|
|・ Liaise with the authorities on the details of the above 2 payments.|
|・Prepare and calculate the total fees payable to each authority.|
|・Prepare payroll for your company.|
|・Make payments on behalf of your company to the authorities.|
|・Retain records of submissions for future reference.|
If you use our services as described above, you must pay three months’ support fees in advance, after which we will receive the monthly fees payable (to be notified after calculation) and pay them on your behalf to the authorities. Please contact our support desk for further information on support fees.