Taxation Regime In Labuan, Malaysia

taxtationOur company formation team is Malaysia (call/ whatsapp +6018 777 7938) always recommend Labuan as one of the best jurisdiction to host your business. Apart from its unique ownership policies and incorporation procedures, the taxation of a company registered in Labuan is performed in a different manner. A Labuan Company follow the rules and regulations of the Labuan Business Activity Tax Act. The Labuan Business Activity Tax Act prescribes a 3% tax on the Labuan Company’s income or a fixed tax of MYR 20,000 (Approximately USD4500- USD5000).

The business owners can choose which system fits better with his business plans. However, it is important to know that those who choose the second option are not required to perform audit activities. Our team of company incorporation representatives in Malaysia (call/ whatsapp +6018 777 7938) can offer more details on the corporate taxation applicable in Labuan.

Investors can also set up a Labuan Company with non-trading activities (holding company). This type of Labuan Company is fully exempted of the corporate tax.

Interested business owners and investors should also know that, in this jurisdiction, sales tax, value added tax, custom duties and stamp duties are not applicable.

Business owners and investors who are interested in receiving more details on other benefits in establishing a business in Labuan can address to our team of company formation agents in Malaysia (call/ whatsapp +6018 777 7938) for assistance.