Labuan has become a premier offshore financial center in Asia. Situated off the east coast of Malaysia, Labuan has the benefit of low tax regimes under the Labuan International Banking and Financial Center (IBFC) while still retaining the protection of Malaysia’s laws and regulations.
Labuan IBFC’s simple and straightforward tax system applies to Labuan entities carrying on a Labuan business activity under the Labuan Business Activity Tax Act 1990. It has an unambiguous fiscal framework that provides an ideal ecosystem for global companies to house their international dealings and transactions.
Labuan IBFC is well positioned to tap into one of the fastest growing regions in the world. Malaysia was ranked as the region’s top emerging economy by the World Economic Forum in its Global Competitiveness Report 2017-2018 and is well on its way to achieving high-income status.
Labuan FSA shall ensure a sound, stable and dynamic Labuan International Business and Financial Centre for Asia, by committing to the highest principles and its core values.
Labuan Financial Services Authority (Labuan FSA) was established on 15 February 1996 under the Labuan Financial Services Authority Act 1996. Labuan FSA is the statutory body responsible for the development and administration of the Labuan International Business and Financial Centre (Labuan IBFC). Labuan FSA’s key role is to license and regulate licensed entities operating within Labuan IBFC and to ensure all such entities remain in compliance with the internal and international best standards adopted by the jurisdiction. Labuan FSA also develops policies for the orderly conduct of business and financial services in Labuan IBFC.