Labuan

Personal income tax

Subject to the provisions of the Malaysian Income Tax Act, 1967 (ITA).

Corporate income tax

All Labuan companies that are in scope will be subject to ‘economic substance requirements’ (ESR) under the Labuan tax regime, and will benefit from the preferential tax rates mentioned below:
• Labuan companies undertaking Labuan trading activities are subject to 3% tax of net audited profit
• Labuan companies undertaking Labuan non- trading activities are not subject to tax
• Labuan companies undertaking both Labuan trading and non-trading activities are deemed to be undertaking Labuan trading activities and subject to 3% tax of net audited profit

Exchange restrictions

Any currency.

Tax Information exchange agreements

Labuan Business Activity Tax Act 1990 

Permitted currencies

Any currency.

Minimum authorised capital

1

Minimum share issue

1 share.

Shelf companies

N/A

Timescale for new entities

1 business day.

Incorporation fees

Company incorporation fee is based on paid up capital:
1. < MYR50,000 – USD300 / MYR1,000
2. MYR50,000 – MYR1,000,000 – USD600 / MYR 2,000
3. > MYR1,000,000l – USD1,500 / MYR5,000

Annual fees

Labuan company – USD800/MYR2,600
Labuan foreign company – USD1,500 / MYR5,300

Minimum number

1

Residency requirements/ownership restrictions

No.

Corporate directors

Allowed.

Meetings/frequency

Must be held out of Labuan, minimum 1.

Bearer shares

Not permitted.

Minimum number

1

Annual return

Yes.

Audit requirements

Mandatory for Labuan companies carrying on trading activities.

Registered office

Registered office address in Labuan is mandatory.

Domicile issues

Yes.

Company naming restrictions

No restriction, subject to section 21 of LCA.