End-to-end payroll administration ensuring accuracy, confidentiality, and compliance.
PAYROLL SERVICES
Managing payroll in Labuan requires precise handling of statutory contributions, regulatory updates, and cross-border workforce requirements. Our Payroll Management Service provides companies with a fully compliant, end-to-end payroll solution designed to meet both Labuan and Malaysia’s employment regulations.
Whether you are a Labuan company with local or foreign employees or an employer seeking to meet substance requirements under the Labuan Business Activity Tax Act (LBATA), we ensure your payroll is processed accurately, securely, and in full compliance with current laws.
Our Payroll Services Include:
Monthly payroll processing
Calculation of salaries, allowances, overtime, and deductions
Preparation of payslips and payroll reports
Statutory contribution calculations (EPF, SOCSO, EIS and HRD if applicable)
Yearly tax documentation (EA Form and CP8D)
Customised payroll solutions for expatriates and foreign directors
Employee database management
Preparation of payslips and payroll reports
Payroll Compliance for Foreigners & Work Permit Holders in Labuan
Under the latest government requirements, foreign employees and foreign directors applying for a Labuan work permit must now comply with mandatory EPF contributions, currently set at:
Employer: 2% (mandatory minimum for foreigners)
Employee: 2% (mandatory minimum for foreigners)
We ensure full compliance with these requirements by:
Registering your company and employees with EPF
Processing the monthly 2% employee contribution
Ensuring supporting documents are aligned for work permit submissions
Coordinating with Labuan FSA when needed
This ensures your company remains fully compliant with Labuan immigration and regulatory standards, reducing risks of delays or rejection in work permit processing.
Payroll as Part of Substance Requirements (For 0% or 3% LBATA Tax Rate)
Under LBATA, Labuan companies must demonstrate adequate substance to enjoy the 0% tax (non-trading) or 3% tax (trading) rate. Employee hiring and payroll compliance are key components of substance, including:
Having full-time employees in Labuan or Malaysia (depending on business activity)
Payroll records that reflect real and ongoing business operations
Proper EPF/SOCSO contributions
Documented salary payments through local banking channels
Head Office
Unit Level 11(A), Main Office Tower, Financial Park Labuan, Jalan Merdeka, 87000 FT Labuan, Malaysia
Marketing Office
19A-25-1, Business Suite, UOA Centre, No.19, Jalan Pinang, 50450 FT Kuala Lumpur, Malaysia
