Labuan companies carrying on business activities, whether licensed or non-licensed, are regulated under the Labuan Companies Act 1990 and the Labuan Financial Services and Securities Act 2010 where applicable. Whereas the tax and the economic substance requirements for each type of Labuan business activity are covered under the Labuan Business Tax Activity Act 1990 (“LBATA”).
Permitted Labuan business activities are categorised and defined in the table provided with the schedule showing the minimum economic substance requirements (“ESR”) to comply under the LBATA in order to benefit from the preferential tax rates of 0%-3%.
Note: Business activities under codes 1 to 20 require licensing from Labuan FSA.
