Advantages of Labuan Company

Labuan, a special region of Malaysia, which is also one of the most important offshore centre in the Asian region. Over the years, Labuan attracted a huge numbers of businessmen around the world opening companies in Malaysia, as the business environment is very appealing in terms of taxation, ownership policies, incorporation procedures and many others.

Below are the advantages of a Labuan Company. Our company formation specialists in Malaysia (call/ Whatsapp +6018 777 9938) can offer an in-depth understanding on the Labuan business environment as well as legal assistance for the registration of a new business in Labuan.

  • Corporate tax rate of 3% ONLY on audited net profits subject to a maximum of MYR 20,000.
  • No corporate tax for investment holding.
  • No sales tax
  • No government service tax.
  • No goods and service tax (GST) or value added tax (VAT).
  • No capital gain tax.
  • No withholding tax for payment of royalty, lease rental, interest income, technical services or management fee.
  • No tax on dividend remitted back to home countries.
  • No stamp duty for the execution of all instruments related to the operations of a Labuan Company.
  • No personal income tax on director fee received from Labuan Company by a non-Malaysian director.
  • Non-compulsory of audit except for license activities.
  • No tax estimation policy
  • No exchange control restrictions
  • 50% exemption on gross employment income received from Labuan Company by Non-Malaysian Citizen in Managerial capacity.
  • 50% exemption on gross housing allowance and Labuan Territory allowance received by Malaysia resident exercising employment in Labuan for a Labuan Company.
  • Private and confidential policy. Company search by any third party is not available unless written authorization letter obtained from the company director or shareholders.
  • Work permit from Labuan allows foreign businessman to stay and work anywhere in Malaysia.
  • Low operation cost compared to other major cities in Asia.
  • Strategic located and time zones proximity.