Finance Act 2018 Changes to Labuan Company

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The government of Malaysia is commitment to international tax practices and counter the effect of harmful tax practices in light of the Organization for Economic Cooperation and Development (OECD) base erosion and profit shifting project (BEPS). On 31 December 2018 The Finance Act 2018 which resulted the changes to the Labuan Business Activity tax Act 1990 was gazetted which comes into effective commencing 1 January 2019. The election for tax at the flat rate of MYR 20,000 was abolished. This means that Labuan company tax rate will be 3 percent…More