Fact File Supplied By:
Labuan International Business and Financial Centre (Labuan IBFC).
Off the North-West of Borneo and approximately 10 km from the Malaysia State of Sabah.
8 hours ahead of Greenwich Mean Time (+0800 GMT) and 16 hours ahead of US Pacific Standard Time.
Federal Territory of Malaysia.
Labuan International Airport.
The National language is Bahasa Malaysia while English and Chinese are widely spoken. English is commonly used as business language.
Malaysian Ringgit (MYR).
Federal government through the Ministry of Federal Territories.
International dialling code
Common law legal system.
1. Islamic finance
2. Digital financial services
3. Wealth management
4. Insurance and risk management
5. Trading and non-trading (investment activities)
7. Capital market
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
Tax Information exchange agreements
Labuan Business Activity Tax Act 1990
Minimum authorised capital
Minimum share issue
Timescale for new entities
1 business day.
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
Labuan company – USD800/MYR2,600
Labuan foreign company – USD1,500 / MYR5,300
Residency requirements/ownership restrictions
Must be held out of Labuan, minimum 1.
Mandatory for Labuan companies carrying on trading activities.
Registered office address in Labuan is mandatory.
Company naming restrictions
No restriction, subject to section 21 of LCA.