Qualifying to
Labuan Corporate Tax Framework
References:
1
Undertake business assessment to determine if the intended business is a qualified Labuan business activity as prescribed under the relevant Economic Substance Requirements (ESR) regulations.
Non-Labuan business activity refers to activities not prescribed under the relevant ESR regulations.
Non-Labuan business activity refers to activities not prescribed under the relevant ESR regulations.
2
Determine the ESR for the intended business to qualify for Labuan tax framework.
3
Undertake ESR-compliant assessment to determine the annual tax treatment.
For a Labuan entity that does not comply with the ESR, the tax treatment for the respective year will be at the rate of 24% upon its chargeable profit. Chargeable profit shall be the net profit as reflected in the audited account.
For a Labuan entity that does not comply with the ESR, the tax treatment for the respective year will be at the rate of 24% upon its chargeable profit. Chargeable profit shall be the net profit as reflected in the audited account.
4
For a Labuan entity that undertakes non-Labuan business activity, the entity will be taxed under the Malaysia Income Tax Act 1967.
