{"id":5145,"date":"2023-03-05T20:21:20","date_gmt":"2023-03-05T12:21:20","guid":{"rendered":"https:\/\/ancgroup.biz\/?p=3765"},"modified":"2023-03-05T20:21:20","modified_gmt":"2023-03-05T12:21:20","slug":"labuan-entities-dormant-tax-treatment","status":"publish","type":"post","link":"https:\/\/ancgroup.biz\/ms\/labuan-entities-dormant-tax-treatment\/","title":{"rendered":"Labuan Entities with Dormant Status: Guidelines on Tax Treatment"},"content":{"rendered":"

Labuan Entities with Dormant Status: Guidelines on Tax Treatment<\/strong><\/h4>\n

The objective of this guideline<\/a> is to provide clarification on the tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445]<\/a> as prescribed through the Labuan Investment Committee (LIC) Pronouncement 1-2019 and\u00a0\u00a0 2-2019 dated 19 June 2019 and 11 December 2019, respectively.<\/p>\n

Labuan entity is considered dormant if it:<\/p>\n

a. Has never commenced operations since the date of its incorporation;<\/div>\n
b. Has previously been in operation or carried on the business but has now ceased operations or business; or<\/div>\n
c. It does not have any significant accounting transaction for one financial year before the occurrence of substantial change in its equity shareholding (i.e. 50% or more). This means that there is no recording entry in the company accounts other than the minimum expenses for compliance with a stipulated statutory requirement. The minimum expenses referred to are as follows:<\/div>\n
\n

(i) Filing of the company\u2019s annual return;
\n(ii) Secretarial fee for filing of the company\u2019s annual return;
\n(iii) Tax filing fee;
\n(iv) Audit fee; and
\n(v) Accounting fee.<\/p>\n<\/div>\n

Labuan entity is NOT considered as dormant if it owns shares, real properties, fixed, deposits, and other similar investments including income such as rents, interest, etc. (if any) received by virtue of the mentioned ownership.<\/p>\n

Labuan entities that are dormant or struck off, including those under winding up proceedings or under liquidation process, which do not derive any source of income need not comply with substance requirements. However, if Labuan entities resume operations, substance requirements must be complied with until the last date of the accounting period.<\/p>\n

The responsibilities of Labuan entities that are dormant under Act 445 are as follows:<\/p>\n\n\n<\/colgroup>\n\n\n\n
\n

Labuan Entities<\/p>\n<\/td>\n

\n

Documents to be Submitted<\/p>\n<\/td>\n<\/tr>\n

\n

Dormant \/ under liquidation process<\/p>\n

\n<\/td>\n

\n
\u2022Form LE1<\/a><\/div>\n
\u2022Audited accounts (if any) \/ management accounts<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Deemed effective from Year of Assessment 2020.<\/p>\n

\n
\n

ANC Group – Your Personal Tax Advisor<\/span><\/strong><\/h3>\n<\/div>\n

Tax consulting is the core service of ANC Group. Our tax professionals provide clients with comprehensive tax support and guidance. We offer tax consulting and compliance services for expatriates<\/a>, entrepreneurs<\/a>, and listed and non-listed companies<\/a>.<\/p>\n

Our tax consulting services include business tax, transaction tax, personal tax, and corporate income tax. We don\u2019t just guide you in interpreting and applying complicated taxation rules, but to explore new opportunities and business trends.<\/p>\n

We keep you abreast with Malaysia tax updates and any changes in the local regulations.<\/p>\n

We work closely with industry specialists, authorities, and associated professionals within ANC Group to provide the best-in-class integrated tax planning solutions. ANC specialists coordinate the accounting and taxation services to bring your business to success.<\/p>\n

[vc_btn title=”Get a Quote” color=”orange” size=”lg” link=”url:%23Footer|title:Footer||” el_id=”buttonGetQuoteTaxService”]<\/p>\n

 <\/p>","protected":false},"excerpt":{"rendered":"

Labuan Entities with Dormant Status: Guidelines on Tax Treatment The objective of this guideline is to provide clarification on the tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445] as prescribed through the Labuan Investment Committee (LIC) Pronouncement 1-2019 and\u00a0\u00a0 2-2019 dated 19 June 2019 and […]<\/p>","protected":false},"author":1,"featured_media":5380,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[17,33,42],"tags":[],"class_list":["post-5145","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","category-publication","category-taxation"],"acf":[],"yoast_head":"\nLabuan Entities with Dormant Status: Guidelines on Tax Treatment<\/title>\n<meta name=\"description\" content=\"Labuan Entities with Dormant Status - Tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445]\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ancgroup.biz\/ms\/labuan-entities-dormant-tax-treatment\/\" \/>\n<meta property=\"og:locale\" content=\"ms_MY\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Labuan Entities with Dormant Status: Guidelines on Tax Treatment\" \/>\n<meta property=\"og:description\" content=\"Labuan Entities with Dormant Status - Tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ancgroup.biz\/ms\/labuan-entities-dormant-tax-treatment\/\" \/>\n<meta property=\"og:site_name\" content=\"ANC Group\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-05T12:21:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ancgroup.biz\/wp-content\/uploads\/2023\/03\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"hazelien\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"hazelien\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minit\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/\"},\"author\":{\"name\":\"hazelien\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#\\\/schema\\\/person\\\/edc05d3cf1a4bace73d6fae8bd2cbbf0\"},\"headline\":\"Labuan Entities with Dormant Status: Guidelines on Tax Treatment\",\"datePublished\":\"2023-03-05T12:21:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/\"},\"wordCount\":459,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/ancgroup.biz\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg\",\"articleSection\":[\"Employment\",\"Publication\",\"Taxation\"],\"inLanguage\":\"ms-MY\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/\",\"url\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/\",\"name\":\"Labuan Entities with Dormant Status: Guidelines on Tax Treatment\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/ancgroup.biz\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg\",\"datePublished\":\"2023-03-05T12:21:20+00:00\",\"description\":\"Labuan Entities with Dormant Status - Tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445]\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#breadcrumb\"},\"inLanguage\":\"ms-MY\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"ms-MY\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#primaryimage\",\"url\":\"https:\\\/\\\/ancgroup.biz\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg\",\"contentUrl\":\"https:\\\/\\\/ancgroup.biz\\\/wp-content\\\/uploads\\\/2023\\\/03\\\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg\",\"width\":2560,\"height\":1440,\"caption\":\"Labuan Entities with Dormant Status\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/labuan-entities-dormant-tax-treatment\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/ancgroup.biz\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Labuan Entities with Dormant Status: Guidelines on Tax Treatment\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#website\",\"url\":\"https:\\\/\\\/ancgroup.biz\\\/\",\"name\":\"ANC Group\",\"description\":\"Empower Business, Accelerate Forward\",\"publisher\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/ancgroup.biz\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"ms-MY\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#organization\",\"name\":\"ANC Group\",\"url\":\"https:\\\/\\\/ancgroup.biz\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"ms-MY\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/ancgroup.biz\\\/wp-content\\\/uploads\\\/2025\\\/02\\\/ANC-New-Final-Logo-reversewith-R.png\",\"contentUrl\":\"https:\\\/\\\/ancgroup.biz\\\/wp-content\\\/uploads\\\/2025\\\/02\\\/ANC-New-Final-Logo-reversewith-R.png\",\"width\":1646,\"height\":949,\"caption\":\"ANC Group\"},\"image\":{\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#\\\/schema\\\/logo\\\/image\\\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/ancgroup.biz\\\/#\\\/schema\\\/person\\\/edc05d3cf1a4bace73d6fae8bd2cbbf0\",\"name\":\"hazelien\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"ms-MY\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/004dc319cd453106047904bda58c083e5d327f64ea71b1cf634df9987e798ca1?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/004dc319cd453106047904bda58c083e5d327f64ea71b1cf634df9987e798ca1?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/004dc319cd453106047904bda58c083e5d327f64ea71b1cf634df9987e798ca1?s=96&d=mm&r=g\",\"caption\":\"hazelien\"},\"sameAs\":[\"https:\\\/\\\/ancgroup.biz\\\/\"],\"url\":\"https:\\\/\\\/ancgroup.biz\\\/ms\\\/author\\\/hazelien\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Labuan Entities with Dormant Status: Guidelines on Tax Treatment","description":"Labuan Entities with Dormant Status - Tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445]","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ancgroup.biz\/ms\/labuan-entities-dormant-tax-treatment\/","og_locale":"ms_MY","og_type":"article","og_title":"Labuan Entities with Dormant Status: Guidelines on Tax Treatment","og_description":"Labuan Entities with Dormant Status - Tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445]","og_url":"https:\/\/ancgroup.biz\/ms\/labuan-entities-dormant-tax-treatment\/","og_site_name":"ANC Group","article_published_time":"2023-03-05T12:21:20+00:00","og_image":[{"width":2560,"height":1440,"url":"https:\/\/ancgroup.biz\/wp-content\/uploads\/2023\/03\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg","type":"image\/jpeg"}],"author":"hazelien","twitter_card":"summary_large_image","twitter_misc":{"Written by":"hazelien","Est. reading time":"2 minit"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#article","isPartOf":{"@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/"},"author":{"name":"hazelien","@id":"https:\/\/ancgroup.biz\/#\/schema\/person\/edc05d3cf1a4bace73d6fae8bd2cbbf0"},"headline":"Labuan Entities with Dormant Status: Guidelines on Tax Treatment","datePublished":"2023-03-05T12:21:20+00:00","mainEntityOfPage":{"@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/"},"wordCount":459,"commentCount":0,"publisher":{"@id":"https:\/\/ancgroup.biz\/#organization"},"image":{"@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#primaryimage"},"thumbnailUrl":"https:\/\/ancgroup.biz\/wp-content\/uploads\/2023\/03\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg","articleSection":["Employment","Publication","Taxation"],"inLanguage":"ms-MY","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/","url":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/","name":"Labuan Entities with Dormant Status: Guidelines on Tax Treatment","isPartOf":{"@id":"https:\/\/ancgroup.biz\/#website"},"primaryImageOfPage":{"@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#primaryimage"},"image":{"@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#primaryimage"},"thumbnailUrl":"https:\/\/ancgroup.biz\/wp-content\/uploads\/2023\/03\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg","datePublished":"2023-03-05T12:21:20+00:00","description":"Labuan Entities with Dormant Status - Tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445]","breadcrumb":{"@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#breadcrumb"},"inLanguage":"ms-MY","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/"]}]},{"@type":"ImageObject","inLanguage":"ms-MY","@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#primaryimage","url":"https:\/\/ancgroup.biz\/wp-content\/uploads\/2023\/03\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg","contentUrl":"https:\/\/ancgroup.biz\/wp-content\/uploads\/2023\/03\/yachtboats-in-ports-at-evening-with-beautiful-sunset-sky-port-in-sztynord-SBI-300871149-scaled-1.jpg","width":2560,"height":1440,"caption":"Labuan Entities with Dormant Status"},{"@type":"BreadcrumbList","@id":"https:\/\/ancgroup.biz\/labuan-entities-dormant-tax-treatment\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ancgroup.biz\/"},{"@type":"ListItem","position":2,"name":"Labuan Entities with Dormant Status: Guidelines on Tax Treatment"}]},{"@type":"WebSite","@id":"https:\/\/ancgroup.biz\/#website","url":"https:\/\/ancgroup.biz\/","name":"ANC Group","description":"Empower Business, Accelerate Forward","publisher":{"@id":"https:\/\/ancgroup.biz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ancgroup.biz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"ms-MY"},{"@type":"Organization","@id":"https:\/\/ancgroup.biz\/#organization","name":"ANC Group","url":"https:\/\/ancgroup.biz\/","logo":{"@type":"ImageObject","inLanguage":"ms-MY","@id":"https:\/\/ancgroup.biz\/#\/schema\/logo\/image\/","url":"https:\/\/ancgroup.biz\/wp-content\/uploads\/2025\/02\/ANC-New-Final-Logo-reversewith-R.png","contentUrl":"https:\/\/ancgroup.biz\/wp-content\/uploads\/2025\/02\/ANC-New-Final-Logo-reversewith-R.png","width":1646,"height":949,"caption":"ANC Group"},"image":{"@id":"https:\/\/ancgroup.biz\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ancgroup.biz\/#\/schema\/person\/edc05d3cf1a4bace73d6fae8bd2cbbf0","name":"hazelien","image":{"@type":"ImageObject","inLanguage":"ms-MY","@id":"https:\/\/secure.gravatar.com\/avatar\/004dc319cd453106047904bda58c083e5d327f64ea71b1cf634df9987e798ca1?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/004dc319cd453106047904bda58c083e5d327f64ea71b1cf634df9987e798ca1?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/004dc319cd453106047904bda58c083e5d327f64ea71b1cf634df9987e798ca1?s=96&d=mm&r=g","caption":"hazelien"},"sameAs":["https:\/\/ancgroup.biz\/"],"url":"https:\/\/ancgroup.biz\/ms\/author\/hazelien\/"}]}},"_links":{"self":[{"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/posts\/5145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/comments?post=5145"}],"version-history":[{"count":0,"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/posts\/5145\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/media\/5380"}],"wp:attachment":[{"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/media?parent=5145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/categories?post=5145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ancgroup.biz\/ms\/wp-json\/wp\/v2\/tags?post=5145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}