Why Incorporate in Labuan?

  • Labuan Company Tax rate of 3% on audited Net profits subject to Maximum Tax of MYR 20,000.or
  • Pay Maximum Tax for Labuan Company of RM 20,000 and No need Audit
  • Labuan Company pays Zero Corporate Tax for Investment Activities.
  • Zero Sales Tax and No Government Service Tax for Labuan Company.
  • Zero Goods & Service Tax (GST) or Value Added Tax (VAT) for Labuan Company.
  • Zero Capital Gain Tax.
  • Zero Withholding Tax for payment of Royalty, Lease Rental, Interest Income, Technical Services or Management Fee for Labuan Offshore Company.
  • Zero tax on dividend remitted back to home countries.
  • Zero Stamp Duty for the execution of all instruments related to the operations of Labuan Company such as M&A and Share Transfer Form.
  • Zero Personal Income Tax on Director Fee received from Labuan Company by Non-Malaysian Citizen Director.
  • 50% Exemption on Gross Employment Income received from Labuan Company by Non-Malaysian Citizen in Managerial capacity in Labuan.
  • 50% Exemption on Gross Housing Allowance and Labuan Territory Allowance received by Malaysia Resident exercising employment in Labuan for a Labuan Company.
  • Labuan Company No need to engage a separate Tax Agent as CS Trust is a one stop center to cater for all your needs.
  • Protection of Private and Confidential Information. Labuan Company search by any third party is not available unless written authorization letter obtained from the Company Director or Shareholders.
  • Labuan Company able to issue 2 years work permit.
  • Labuan Company able to issue 2 years work permit.
  • No exchange control restrictions for Labuan Offshore Company.
  • No Tax Installment Payment. Therefore No penalty for late payment of tax for Labuan Company.
  • Labuan Companies do not need to submit tax estimation. Therefore No tax penalty for differences (above 30%) on estimate tax payable and actual tax paid.
  • Labuan IBFC has low operation costs such as rent, work force compared to other major cities in Asia.
  • Labuan IBFC is strategically located and proximity to several regional financial centers such as Singapore and Hong Kong.
  • Time zones proximity for Asian, North Asia, Australia and New Zealand.
  • Labuan IBFC is whitelisted and is in compliance with OECD

Incorporation procedure

The process and time frame for the Labuan Incorporation as follows:

1 Name Reservation 2 Days
2 Incorporate Labuan Company 3 Days
3 Apply Letter of Information for Bank Account Opening 3 Days
4 Client come to Labuan for Bank Account Specimen and Interview 1 Day
5 Bank Account 4 Weeks

Income tax exemption

Income Tax (Exemption) (No.6) Order 2011 [P.U. (A) 418/2011]
65% of the statutory income derived by any person form the provision of qualifying professional services (i.e. legal, accounting, financial or secretarial services) rendered in Labuan to a Labuan entity (as specified in the Schedule to Labuan Business Activity Tax Act 1990 [Act 445]), is exempted from income tax from year of assessment (YA) 2011 to YA 2010.

Income Tax (Exemption) (No.7) Order 2011 [P.U.(A) 491/2011]
Fees received by an individual non-Malaysian citizen as a director of a Labuan entity are exempted from income tax from YA 2011 to YA 2020.

Income Tax (Exemption) (No.8) Order 2011 [P.U (A) 420/2011]
50% of the gross employment income received by an individual non-Malaysian citizen in a managerial capacity with a Labuan entity in Labuan.

Income Tax (Exemption) (No.9) Order 2011 [P.U. (A) 421/2011]
50% of the gross housing allowance and gross Labuan Territory allowance received by an individual Malaysian citizen from exercising an employment in Labuan with a Labuan entity is exempted from income tax from YA 2011 to YA 2020.