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Monday 08:00 - 17:30 Tuesday 08:00 - 17:30 Wednesday 08:00 - 17:30 Thursday 08:00 - 17:30 Friday 08:00 - 17:30

AAE International Trust

Name: AAE International Trust
Address: Unit 2-08, Level 2 Times Square, Jalan Merdeka, Labuan, 87000, MY
Telephone: +60172282331

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AAE International Trust

Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from AAE International Trust, Business consultant, Unit 2-08, Level 2 Times Square, Jalan Merdeka, Labuan.

We are a Malaysian grown full-fledged trust company with the powers to incorporate Labuan companies, provide advisory on how to obtain a financial license, act as a trustee and manage wealth through instruments such as trusts and foundations.

26/08/2026

LABUAN TRUTH
“I’m a foreigner.
I don’t want to set up a Sdn Bhd.
I don’t want the local director requirement.
So I’ll use Labuan.”

🚩 No. Labuan is not a shortcut.

Under Section 196(4) of the Companies Act 2016, a Malaysian private company must have at least 1 director ordinarily resident in Malaysia.
👍 A Malaysian citizen / PR generally qualifies.
👍 An expatriate may also qualify if they meet the ordinary residence requirements. Perhaps if you hold a resident pass or work permit or you married a Malaysian spouse...

So don't think:
“I'll just use Labuan to avoid this.”

And there's another issue.

If your Malaysian client pays your Labuan company, there can be tax deduction restrictions on their side:
👉 Interest — 33% not deductible
👉 Lease rental — 33% not deductible
👉 Other payments — 97% not deductible.

So imagine telling your Malaysian client:
“Pay my Labuan company.”
And they then discover that 97% of that payment may not be deductible for tax purposes.
Not exactly a comfortable conversation.

So before you say:
“Let's use Labuan.”

Ask yourself:
Is my business genuinely international ❓

Labuan can be a great structure.
But it is not a backdoor into Malaysia ‼️

Structure first.
Then incorporate.

24/08/2026

LABUAN 101
Can a Labuan company have Malaysian clients?
👉 YES.

But before you get too excited — let me explain.
Labuan is for international business.

So if your Malaysian client itself has international business:
🌍 International customers
🌍 International operations
💱 Foreign currency transactions
✔️ Then yes — we can look at it.

But if your plan is:
❌ Set up a Labuan company
❌ All clients are Malaysian
❌ Invoice them in RM
❌ Everything happens in Malaysia
🤔 Then I have questions.

Because there are also tax consequences for the Malaysian resident paying your Labuan company.
Under the Income Tax (Deductions Not Allowed for Payment Made to Labuan Company by Resident) Rules 2018, certain payments made by Malaysian residents to Labuan companies have restrictions on tax deductibility.

So don't just ask me:
“Can my Labuan company service a Malaysian client?”

👉 Tell me:
What does the Malaysian client actually do?
If they are doing international business, that's a different story.

If they are purely domestic…
🚩 Then Labuan may not be the structure you think it is.
This is why I always say:

Don't start with the company.

👉 Start with the business.

Then we decide whether Labuan fits.

21/08/2026

LABUAN STORY: “WHY DID THE BANK REJECT MY MONEY?!”

We had a client who was expecting an incoming payment into their Labuan bank account.

Seriously, it wasnt USD10million. It was a fraction of that. 😆

The bank sent an email.

They needed some documents to verify the incoming funds.

The client didn't respond.

Then the funds didn't come in.

And eventually…

The client called AAE — very angry — blaming the bank and using some rather colourful language. 😅

But here's the thing.

The bank wasn't necessarily rejecting the funds.

They were asking for information.

And once the bank query wasn't answered, getting an update became much more complicated.

You can't simply pick up the phone and speak directly to the bank officer handling the matter.

You may need to submit a bank maintenance form to request an update.

Or call customer service and get rerouted to different officers.

All this…

when the whole thing could have been much simpler.

Just respond to the bank's email.

And if you don't understand what the bank is asking?

Forward the email to AAE.

We'll help you understand:

✔️ What the bank is asking for

✔️ What documents you need to provide

✔️ Whether the incoming funds can be accepted

✔️ What supporting documents may be required

✔️ How to respond to the bank

We can also assist with documentation to support the incoming funds where appropriate.

So before shouting at the bank…

Before getting frustrated…

Before the issue becomes bigger than it needs to be…

Just forward the email to us.

We'll guide you on the action plan from there.

And yes —

we promise the fastest response time.

Because when it comes to banking, how you respond matters.

But how quickly you respond matters too.

19/08/2026

LABUAN TRUTH: IGNORING THE LETTER CAN COST YOU.

You received a letter.

You put it aside.

“I'll deal with it later.”

Then later becomes too late.

Let's talk about what can actually happen when you don't respond.

1️⃣ You don't file your Annual Return.

The penalty starts from USD30 for late filing of the Annual Return, depending on how late you are.

2️⃣ You don't pay your Annual Fee.

Late payment penalties can start at USD30 for 1–89 days.

90–179 days: USD50

More than 180 days: USD400

And if the annual fee remains unpaid for 6 months after the anniversary date, the LFSA can escalate the penalty under the 50% heavy penalty rule.

So that email from your Co Sec?

Don't ignore it.

3️⃣ LFSA writes to you.

If LFSA issues a letter requiring you to respond within a certain period — commonly 14 days — and you don't respond, you may expose yourself to an administrative penalty of up to RM10,000.

That is no longer an email you can “get to later”.

4️⃣ LHDN sends you a Notice of Power to Call for Information.

This one is important.

It is NOT automatically a penalty.

It is essentially LHDN saying:

“Hey, we need more information about your tax filing.”

Maybe something in your previous year's tax filing raised a question.

Maybe they need supporting documents.

Maybe — just maybe — they are looking at something that could result in a tax refund.

It's okay to have wild dreams. 😂

But seriously — RESPOND.

Because if you don't provide the information, LHDN may make its conclusion based on the information already available to them.

And that may be exactly the information you didn't want them relying on.

So:

Call your auditor.

Appoint a tax agent.

Get 3 quotations if you need to.

Ask AAE what you should do.

But don't sit on the letter.

Tax penalties can be difficult to appeal once they have been formally imposed.

The lesson?

The letter is not necessarily bad news — ignoring it can make it bad news.

RESPOND.

17/08/2026

LABUAN 101: RESPOND.
If you own a Labuan entity, you will get queries.
From your Co Sec.
From your auditor.
From the bank.
From the tax authority.
And sometimes, you will get a deadline.

For Co Sec, there are really only 2 key annual deadlines to remember:
1️⃣ Annual Return (Form 27) — filed in the 11th month before your anniversary.
2️⃣ Annual fees — paid to your Co Sec and LFSA before your incorporation anniversary.
Simple, right?

But here is where people get into trouble.
They don't respond.
They see the email.
They tell themselves they'll deal with it later.
Then they forget.
Or worse — they sweep it under the carpet.
Then get penalty. Then come to us and ask - HOW LAH?

Penalty lah....
How you respond is important.
When you respond is important.
But most importantly —

RESPOND.

Even if you don't have the answer yet.
Even if you need more time.
Even if the answer is not what you hoped for.
At least right, we could have discussed it and given you some light to see at the end of the tunnel
An unanswered email does not make the problem disappear.
It usually makes it bigger.

14/08/2026

📖 Labuan Story: “Why is my bank account taking so long?!”

We had a client who was VERY frustrated.

He said:
“Other jurisdictions can open my account in 3 days!”
Labuan?
1–2 months for compliance.
Then another 2 weeks for internet banking.
He complained.
And complained.
And eventually...
The bank rejected him.

So what went wrong?
He was too secretive.
He didn't want to give us much information about his business.

But the bank wanted to know:
Who are your customers?
What are you selling?
Where will the money come from?
Who are your suppliers?
What are your expected transactions?

Simple things like:
📄 Sample invoices
📄 MOUs
📄 Contracts
📄 Business forecasts
📄 Previous business experience
would have helped.

Think about it.

The bank isn't necessarily saying:
“We don't believe you.”

They're saying:
“Give us something so we can believe you.”
That's the difference.

So my advice?
Don't fight the bank.
Don't fight AAE.
Work WITH us.

If the bank asks questions — answer.
If they want documents — give them.
If your business is complicated — explain it.
Because trying to hide information?
🚩 That's when you start looking suspicious.

Labuan banking may take longer.
But you get the benefits of a Labuan structure AND Malaysian commercial banking.
So...
Change the mindset.
Don't ask:
“How do I get around the bank?”
Ask:
“How do I make it easy for the bank to say YES?”

Much easier lah. 😂

12/08/2026

🔥 Labuan Truth: Bank account opening is actually quite straightforward.
BUT...

You need to understand the current banking environment.

Banks today are looking at:
Who are the directors?
Who are the shareholders?
Where is the money coming from?
Who are your customers?
Which countries are involved?
What business are you actually doing?

And yes...

Some businesses will get more scrutiny.
Russia-related exposure?
Iran?
North Korea?
FATF high-risk jurisdictions?
Crypto?
Expect more questions.
Not because the bank hates you.
Because compliance has become much tighter.

Take crypto.
Digital assets are not legal tender in Malaysia, and certain digital-asset activities are regulated by the Securities Commission.
So if your Labuan company is involved in crypto...
Don't expect the bank to say:
“Sure boss, no questions asked.” 😂
They will want to understand everything.

And that's okay.

The trick is not to hide.
Explain. Document. Cooperate.
C’mon lah.
Banks aren't asking you to be perfect.
They just need to understand who you are and what your business does. 🙌

That's the real Labuan Truth.

10/08/2026

🏦 Labuan 101: So where do you open your bank account?
You have your Labuan company.
You have your office.

Now...
Where do you put the money? 😂
For Labuan, the main banks we commonly work with are:
👉 OCBC
👉 Maybank
👉 CIMB
👉 Alliance Bank
Other banks may consider you too — especially if you are already a preferred customer.

But here's the thing.
Many international banks still hear “Labuan” and think:
🚨 Offshore
🚨 High risk
🚨 Money laundering
Oh please lah. 😂
Labuan companies bank with commercial onshore Malaysian banks.
Labuan is a regulated international business centre.

So how do you make the bank say YES?
1. Show them your business.
Business plan.
Potential clients.
Target markets.
MOUs.
Contracts.
Sample invoices.

2. Show them your 3-year plan.
Where are you going?
What are you trying to achieve?

3. Show credibility.
Previous businesses.
Existing bank accounts.
Relevant experience.
Don't just tell the bank:
“I have a business.”
Show them.

The easier you make it for the bank to understand your business, the easier it is for them to assess you.

Simple lah. Kaothim. Ok!

05/08/2026

💥 Labuan Truth

Is a Labuan audit really a pain?

Honestly...

Not really.

If your records are in order, the process is quite straightforward.

Here's the simplified version:

✅ 1. Determine your status

Active or Dormant?

✅ 2. If Active...

Making a profit? Or

Making a loss?

(Both still require an audit.)

✅ 3. Confirm you're under LBATA

Code 1–20: Financial Licence

Code 21 & 22: Investment Holding

Code 23: Other Trading Entities

✅ 4. Appoint a Labuan Approved Auditor

Get at least 3 quotations (good corporate practice).

Send them your Management Accounts (P&L + Balance Sheet).

Sign a consent letter.

Auditor issues the Engagement Letter.

✅ 5. Audit begins

Your auditor will liaise with:

Your Company Secretary

Your accounting team

You (yes... expect questions 😅)

✅ 6. Audit completed

Usually within 4–5 weeks.

✅ 7. Profit Before Tax (PBT)

The audit report confirms your PBT.

➡️ Labuan tax = 3% of PBT (Code 1-23).

✅ 8. Substance Confirmation

Your auditor will confirm whether your company has met the Labuan substance requirements.

✅ 9. Approve the accounts

Hold:

Board Meeting

Shareholders' Meeting

Sign all the necessary resolutions.

✅ 10. Submit your tax return

File via the MyTax platform.

✅ 11. Lodge your audit report

Submit the audited financial statements and required resolutions to LFSA.

So... when does an audit become a nightmare? 😅

Usually when...

❌ You've done dodgy transactions.

❌ You keep avoiding your auditor's questions.

❌ You ignored the substance requirements all year...
..and suddenly remember them one week before year-end. 🤦‍♀️

❌ Or... you appointed the wrong auditor.

A good audit shouldn't feel like an interrogation.

It should feel like a professional health check for your company.

📩 Want the full step-by-step Labuan audit process (with timelines and documents required)?

Send me a PM.

03/08/2026

🚨 NEW SERIES!
Moving forward, every week will have a theme.
This week's theme?
📊 AUDIT
This week I'll be covering:
📖 Labuan 101 – When is an audit required?
💥 The truth about Labuan audits (and the myths)
😬 A sad Labuan story about one client's painful experience with a Labuan auditor.

📖 Labuan 101
When does your Labuan company need an audit?
There are 5 Labuan entities:
Labuan Company
Investment Holding Company
Trust
Foundation
Partnership
Do they all need an audit?
✅ Yes... but not always.
Unlike Malaysian Sdn Bhd, where some companies qualify for audit exemption...
Labuan entities don't have that exemption.
So when is an audit required?
If your Labuan entity is:
✅ Trading (Code 1–20 or 23), OR
✅ Investment Holding (Code 21 & 22)
AND you are:
💰 Making profits...
😭 Making losses...
👨‍👩‍👧 Holding a work permit (or dependants)...
Congratulations. You're ACTIVE.
➡️ Active = Audit required.
When are you considered dormant?
If the entire year you're only paying:
Co Sec fees
Office rental
A few tiny utility bills
And you have:
❌ No employees
❌ No invoices
❌ No business activities
You're basically in hibernation. 🐻
➡️ Dormant = No audit required.
A trap for Investment Holding Companies 🚨
Many people think:
"I'm only holding shares. No audit."
Not quite.
The moment you:
Transfer shares into the company, or
Receive even the tiniest dividend...
💥 That's a transaction.
➡️ Transaction = Active.
➡️ Active = Audit required.
Simple... until it isn't. 😅

Address

Unit 2-08, Level 2 Times Square, Jalan Merdeka
Labuan
87000

Opening Hours

Monday	08:00 - 17:30
Tuesday	08:00 - 17:30
Wednesday	08:00 - 17:30
Thursday	08:00 - 17:30
Friday	08:00 - 17:30

Telephone

+60172282331

Website

https://aaetrust.biz/

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