Why Labuan

Federal Territory of Labuan is an Island and part of Malaysia. Labuan Island is located East Coast of Malaysia or Borneo. The Island comprises one main island and six other smaller ones covering an area of 92 sq. km. Labuan is a free port island and in 1990 the island was designated as Malaysia’s official offshore financial hub. The name Labuan International Business and Financial Centre or Labuan IBFC was introduced in January 2008 to reflect the jurisdictions’ growth and burgeoning international status and was accompanied by an aggressive rebranding and marketing exercise. Beyond the postcard pictures of long white sandy beaches line with palm trees, the Labuan IBFC has become over time an important financial center in southeast Asia. Beside that more than 50 of the world’s top banks have branches in Labuan.

Reason why Labuan is a preferred choice for many companies:

• Corporate tax 3% on audited net profits for International dealings.
• Corporate tax 24% on audited net profits for Malaysia dealings.
• No withholding tax on interest, dividends, management fees and royalty.
• No SST & GST.
• No stamp duty on transfer of shares and in Labuan business activities.
• 0% personal income tax on Directors’ fees for foreign Directors.
• 50% tax rebate on personal income for foreign high management employments
• 65% tax rebate on personal income of Malaysian high management employments.
• More than 70 countries in DTA.
• Able deal with Malaysian by permanently elects corporate tax 24%.
• Labuan offshore banks do not have foreign exchange control.
• Labuan offshore banks imposed no tax on interest earned on deposit placements