🇲🇾 LABUAN INTERNATIONAL BUSINESS AND FINANCIAL CENTRE
Malaysia — Special Tax Regime
Status
Active
Effective From
Jan 1, 1990
📋 DETAILS
Summary
Labuan entities can elect to be taxed at 3% of net audited profits for trading activities, or 0% for non-trading (holding/investment) activities.
Eligibility
Companies incorporated or registered under the Labuan Companies Act 1990
Benefits
3% tax on net profits for trading activities (effectively much lower than 24% standard CIT). 0% on non-trading income. No withholding tax on distributions.
Requirements
Must have adequate substance in Labuan: minimum operating expenditure of MYR 50,000/year and minimum 2 full-time employees in Labuan.
Limitations
Labuan entities that do not meet substance requirements will be taxed at standard 24% rate. Restricted from certain domestic transactions.
Income Types Covered
Labuan trading and non-trading income
Duration Details
Ongoing while conditions met
💰 FINANCIAL
Flat Rate
3.0%
🏛 COUNTRY TAX CONTEXT
Tax System
Territorial
Top PIT Rate
30.0%
Corporate Tax
24.0%
SST
8.0%
Capital Gains
10.0%
Treaty Count
75
📚 SOURCE
Labuan IBFC
View source →
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