Labuan International Business Financial Centre is an ideal mid-shore jurisdiction for expatriates to leverage the low tax regime. At the same time, you can obtain a Corporate Tax Resident Certificate to confirm your Resident status and a Personal Tax Certification. This validates your personal resident status and Work Permit in Malaysia.
These certificates can be easily obtained from the Malaysian Inland Revenue Department. As a Tax Resident in Malaysia, a Labuan Company can mitigate potential risks for a dual resident applicant who could be exposed to taxes of more than one jurisdiction.

With the Common Reporting Standard (CRS) in place, tax authorities can freely exchange financial information through the Automatic Exchange of Information (AEOI) on expatriates residing in their home country for tax assessment purposes. This implementation will greatly impact jurisdictions offering ZERO Tax and no issuance of a Tax Certificate for both the company and expatriates. ZERO Tax jurisdictions often lack infrastructures to assist businesses with real commercial substance creation.

All international entrepreneurs have been pressured to prove their existence and business operation in that particular jurisdiction. Under Labuan, it is easy to create a real and affordable commercial substance with excellent support of good infrastructure, especially for business dealings within the Asian region.

Labuan has the following benefits:

• - Attractive tax efficiency
• - 100% foreign ownership (Malaysian partners not required)
• - 0% tax for Investment Holding activities
• - The registration process is quick (7 working days), simple and cost-efficient
• - NO Tax on Dividend payouts
• - NO SST, GST and Stamp Duty
• - NO Capital Gain Tax and Inheritance Tax
• - NO Personal Tax for all Foreign Directors’ Fee
• - Virtual / Office Room Rental in Labuan
• - Corporate Bank Accounts in MYR and Foreign Currencies
• - Reputable jurisdiction with high regard for economic liberty
• - Ease of operation, maintenance, and control
• - Maximum confidentiality and anonymity
• - 2 years multiple entry renewable Labuan Working Visa
• - Able to stay anywhere within Malaysia

Foreigners can set up the following types of businesses in Labuan:

• International Company (IBC): the main type of company used in this jurisdiction, allows for 100% foreign ownership.
• Private Company Limited by shares: a private company that can be either limited or unlimited and can be considered exempt when the shares are not beneficially owned by any corporation.
• Public Company Limited by shares: these companies can offer their shares to the public and can be listed on the stock exchange.
• Private company limited by guarantee: the members are liable up to a certain amount; used by non-profit organizations.
• Offshore Limited Partnership: has one general partner and no more than 20 partners, the fields of activity are restricted.