Labuan company tax

Income Tax for Companies in Labuan

Labuan is the official federal territory of Malaysia and the taxation of companies in Labuan is regulated under the Income Tax Act 1967. Malaysia has introduced some changes in the Labuan Business Activity Tax Act (LBATA), 1990. The amendments in the LBATA came into action since January 1st, 2019. Taxation could be…

Taxation for Companies in Labuan

Depending on their activities, businesses can pay a preferential income tax rate in Labuan of 3%. Moreover, when transactions involve non-residents, companies can benefit from a highly advantageous tax regime in Labuan. Labuan companies enjoy tax exemptions on various types of income, including dividends, interest, royalties, and capital gains. One…