14/03/2025
Corporate Tax in Labuan
Many companies face high taxes when expanding overseas, but those engaged in the service industry in Labuan can enjoy a corporate tax rate as low as 3%. The nature of service industry businesses includes providing administrative management, accounting, legal, back-office processing, payroll and talent management, agency, and management services.
Additionally, financial services with a financial license, including offshore banking, insurance, trust management, fund management, commodity trading, and financial leasing, also enjoy a 3% corporate tax rate.
As for Labuan companies engaged in non-commercial transactions, such as offshore and onshore investment holding, investment in securities, stocks, loans, deposits, or any other property investments, they can be completely tax-exempt as long as they comply with the Economic Substance Regulations.