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:

1Name Reservation2 Days
2Incorporate Labuan Company3 Days
3Apply Letter of Information for Bank Account Opening3 Days
4Client come to Labuan for Bank Account Specimen and Interview1 Day
5Bank Account4 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.