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Labuan Tax For Trading Company

Labuan trading company has a high degree of flexibility, where business owners and entrepreneurs can freely choose the type of trading activities, jurisdictions to trade with and the scope of market size. A Labuan Company is ideal for international global trades and allows dealing with Malaysians

Labuan Tax for Trading Company

Key Tax Profile of Labuan Trading Company:

* For international revenue, corporate tax is 3% on audited net profits 
* For local Malaysian revenue, corporate tax is 24% with audited accountsLabuan Tax For Trading company
* No withholding tax on dividends, interest, management fee, royalty and technical fees
* No sales tax, GST, service tax for all international dealings Labuan Tax For Trading company
* For Malaysian dealings, 6% GST is applicable for annual revenue more than RM 500,000
* 0% personal income tax on Directors’ fee for foreign individuals or corporate directors
* 50% tax rebate on personal income of foreign professional employment
* 65% tax rebate on personal income of local Malaysians professional employment

* No stamp duty in connection with Labuan business activities, including transfer of shares
* Able to access to more than 70 Malaysia’s tax treaty partners
* Choice to tax elect permanently under Malaysia Income Tax Act 1967 with 24% tax rate
* No foreign exchange control using Labuan offshore bankers Labuan Tax For Trading company
* No tax on interest earned on deposits placement in Labuan offshore bankers

Type of ComplianceReporting PartyDue Dates
Annual ReturnLabuan FSA1 month before anniversary of incorpn. date
Annual Company FeeLabuan FSA On and before anniversary of incorpn. date
Corporate Tax Inland RevenueBy 31st March, extendable to 31st May
Employer Return - Form EInland RevenueBy 31st April
Audit Report/Management AccountLabuan FSA/CP TrustBy 30th Sept
Marketing Office Fee (if any)Labuan FSA-Fee RM7,500By 15th Jan

To access frequently asked questions regarding the taxation of a Labuan company, please click here! Tax compliance of a Labuan company is straightforward with the submission of couple documents annually with an audit report to the Labuan Inland Revenue Board. The appointment of auditor and auditing process for Labuan trading company is simple with few steps to follow. Labuan Tax For Trading company

Feel free to send us an enquiry to find out how to set up an efficient structure for your trading business! We “simplify the complexities” of your Labuan investment.




Product/Services You Intend to Sell

Target Market
Malaysia OnlyWorldwide

Capital Amount

Company Structure (present or intended)
100% Foreign-OwnedJoint-Venture with Malaysian

Do You Intend to Set Up Physical Office/Shop in Malaysia?

Do You or Your company Require Expatriate Visas?

Other Info You Need Us To Know