In 1984, Labuan was declared a Federal Territory under direct administration of the Malaysian Federal Government as part of its initiation to develop Labuan as an international offshore financial centre.
Since 2008 it has been repositioned and rebranded as Labuan International and Financial Centre (IBFC).
Labuan Tax Incentives
Liberal tax rules apply to Labuan entities, including:
For placements of deposits with Labuan entities, there is no withholding tax on interest paid by Labuan entities to residents and non-residents.
For foreign currency loans, there is no withholding tax on interest payments made by Malaysian tax resident to Labuan entities.
In line with the secrecy provisions under the Labuan Financial Services and Securities Act 2010, strict confidentiality is maintained on all accounts.