Why Labuan

Labuan International Business and Financial Centre (IBFC) is a special economic zone of the Malaysia based on the island of Labuan off the Borneo coast. It was established in 1990 and has been marketed as having a unique position to tap investment opportunities in Asia and beyond.

Strategically located in the heart of Asia Pacific, Labuan IBFC is well positioned to tap into one of the fastest growing regions in the world, presenting the perfect opportunity for businesses seeking to connect with Asia and ASEAN economies.

Labuan IBFC boasts a wide range of business and investment structures. World class services available including wealth management, fund management, banking, insurance, leasing, Islamic financial services, trust, foundation, Labuan International Financial Exchange etc.

These unique qualities offer sound options for regional businesses going global or global businesses looking at penetrating Asia’s burgeoning markets.

Benefits of Labuan Company

  • Corporate Tax:
    • Investment Activities – 0%
    • Trading Activities – 3% on Audited Net Profits
  • 0% indirect tax (such as Sales Tax, Service Tax, GST, VAT and Custom Duty)
  • 0% Personal Income Tax on Director Fee for Non-Malaysian Director
  • 0% Stamp Duty – Labuan is a free tax port
  • 0% Withholding Tax: Dividend, Royalty, Lease Rental, Interest, Technical or Management Fee.
  • Labuan has been rated as:
    • Not Harmful at the Forum on Harmful Tax Practices
    • Largely Compliant by Global Forum on Tax Transparency and Exchange Information
  • Tax Residency Certificate available for Company and Individual Shareholder.
  • No Exchange Control Regulations – Free Flow of Funds. Stop Tax heavens Abuse Act does not apply in Labuan.
  • Investment Protection Agreement (IGA) with more than 50 Countries. Protect your investment in the event that it is being nationalized.
  • Private and Confidential. Shareholders, Directors, shareholders and companies’ information are not available for search. Nominees and beneficiaries are protected by Acts
  • Double Tax Treaties (DTA) with more than 70 Countries. Original copy available upon request.
  • Allowed and able to stay and work in Malaysia

The Labuan Legislation

Labuan IBFC is governed by the following legislation:

  • Labuan Companies Act 1990
  • Labuan Business Activity Tax Act 1990
  • Labuan Financial Services Authority Act 1996
  • Labuan Trusts Act 1996
  • Labuan Limited Partnerships and Limited Liability Partnerships Act 2010
  • Labuan Financial Services and Securities Act 2010
  • Labuan Islamic Financial Services and Securities Act 2010
  • Labuan Foundations Act 2010

Additionally, all transactions and dealings in Labuan IBFC are subject to Malaysia’s

  • Anti-Money Laundering and Anti-Terrorism Financing Act 2001
  • Personal Data Protection Act 2010

Labuan IBFC Corporate Video