New Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations prescribe new rules for Labuan entities
29 April 2019
The Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2018 (“Regulations”) came into operation on 1 January 2019. The Regulations require a Labuan entity to have a specified number of full-time employees on Labuan island as well as a stipulated amount of annual operating expenditure. The Regulations specify that a Labuan entity carrying on a Labuan business activity must establish an office in Labuan with a minimum of two to four full-time employees and have an annual operating expenditure in Labuan in the range of MYR50,000 to MYR3 million depending on the type of business. For example, a Labuan bank, investment bank, Islamic bank or Islamic investment bank must have a minimum of three full-time employees in Labuan and a minimum amount of annual operating expenditure in Labuan of MYR180,000.
Reference materials
The Regulations are available on the website of the Labuan International Business and Financial Centre www.labuanibfc.com or by clicking here.