Finance Leasing Business

huge commitment for many businesses. The process for acquiring the

funds requires careful planning.
Instead of paying for the asset outright using cash, it frequently makes sense for businesses to seek methods of spreading the cost of acquiring an asset, to coincide with the timing of the revenue generated by the business. The most common sources of medium-term finance for investment in capital assets are Hire Purchase and Leasing.
Leasing and hire purchase are financial facilities which allow a business to use an asset over a fixed period, in return for regular payments. The business customer selects the equipment it needs and the finance company purchases it on behalf of the business.

lease' is closest to the hire purchase alternative. The leasing

company recovers the full cost of the equipment, plus charges, over the period of the lease.
Although the business customer does not own the equipment, they have most of the 'risks and rewards' associated with ownership. They are responsible for maintaining and insuring the asset and must show the leased asset on their balance sheet as a capital item.
When the lease period ends, the leasing company will generally agree to a secondary lease period at significantly reduced payments. Optionally, if the business wants to stop using the equipment, it can be sold second-hand to an unrelated third party. The business arranges the sale on behalf of the leasing company and acquires the bulk of the sale proceeds.

is a popular method of funding the acquisition of capital

assets. Although, these methods are not necessarily optimal for every business or for every asset purchase. There are a number of considerations to be made, as mentioned below –
Certainty
Budgeting
Fixed Rate Finance
Impact of Security
Maximum Finance
Tax Advantages

Company is taxed at 3% of net audited profits
No Withholding

Tax on lease rental received from Malaysian customers
No Withholding Tax on lease rental payable by Labuan Leasing Company to Foreign Company
Access to more than 70 Malaysia Tax Treaty partners to reduce Withholding Tax on lease rental received by Labuan Leasing Company from Foreign Customers
Liberal exchange control environment in Labuan

Labuan Leasing Structure: [Foreign Financier]
Benefits
Labuan Leasing Company is taxed at 3% of net audited profits
No Withholding Tax on lease rental received from Malaysian Customers
No Withholding Tax on interest payment payable by Labuan Leasing Company to Foreign Financier

net audited profits
No withholding tax on dividends, interest, technical fee

and royalty / lease rental
No stamp duty on all instruments including share transfers
No import duty / sales tax
No foreign exchange controls
No capital gain tax and inheritance tax
Enjoy Malaysia’s Double Tax Agreements with over 70 countries
50% personal tax exemption for expatriate professionals employed by the leasing company
100% tax exemption for director’s fees received by non-citizen directors
To understand the Leasing Process in Labuan, contact the QX Trust team advisers at +60 39212 6940 or consultant@qx-trust.com for a free consultation.

6940

VISIT HERE: https://www.offshore-labuan.com/

ADDRESS:- Unit No. 3A-16, Level 3A

Labuan Times Square, 87000 F.T. Labuan, Malaysia