Labuan Corporate Tax Framework
References:
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.
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.
Determine the ESR for the intended business to qualify for Labuan tax framework.
For a Labuan entity that undertakes non-Labuan business activity, the entity will be taxed under the Malaysia Income Tax Act 1967.
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.
Determine the ESR for the intended business to qualify for Labuan tax framework.
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.
For a Labuan entity that undertakes non-Labuan business activity, the entity will be taxed under the Malaysia Income Tax Act 1967.
