Accounts and finance
Labuan accounting, audit and tax filing
Every Labuan entity must keep proper accounts, have them audited where required, and file an annual tax return — our accounting team handles all three, which includes co-ordination with external approved Labuan auditors and tax agents.
Audited accounts are mandatory for Labuan companies, and both an employer tax return and a company tax return are required. E-invoicing now applies. For most owners this is the recurring administrative load of holding a Labuan entity, and it is where deadlines get missed.
Our accounting team works from our Labuan office. We prepare the books, produce the statements, coordinate the audit and file with the authorities on time.
The record-keeping and filing rules
| Accounting standards | A non-licensed Labuan company may adopt either MFRS or MPERS — most SMEs elect MPERS. A licensed entity must adopt IFRS, or at minimum MFRS, under a Labuan FSA directive |
|---|---|
| When entries must be made | Accounting entries must be made within 90 days of completion of the transaction, under the Labuan Companies Act 1990 |
| Where records are kept | At the registered office, or another place in Labuan. Records must sufficiently explain the transactions and financial position of the company |
| Retention period | At least 6 years — and this survives the company being struck off |
| Audit | Most Labuan companies must have their financial statements audited annually by an external approved auditor in Labuan. Labuan FSA publishes the list of approved auditors |
| Company tax return | Annual, under LBATA. Filed on a current year basis |
| EA forms to employees | Before the last day of February each year |
| Form E and CP8D | By 31 March of the following year, filed through MyTax portal |
| E-invoicing | Applicable to Labuan entities, subject to annual turnover and exemption criteria |
Before you can file: registering a director on MyTax
Why this comes first
Before a Labuan entity can file its tax return, submit an e-Invoice or appoint a tax agent, someone must be registered with the Inland Revenue Board as the company's authorised representative. For most Labuan companies that is a director, and the director registers themselves.
The step people get wrong
The role application must be submitted under the Director's personal tax login credentials. Log in to MyTax using your personal credentials and navigate to Profile > Role Application.
Complete the application
Select New Application, then Director of the Company / Organisation Administrator. Enter the entity's TIN, check the company details displayed are correct, and upload the Certificate of Incorporation and Form 25. Tick the declaration and submit.
Sign and wait
Sign with your passport or NRIC number and your MyTax password. Approval normally takes one to two working days.
How we help
- Accounting and bookkeeping for Labuan entities
- Management accounts including financial statements, balance sheets and income statements
- Annual filing of the financial report to the relevant authorities where required by law
- Tax preparation and timely filing of the annual tax return with the local tax authority
- Audit oversight — we work with several approved audit firms in Labuan, or with an auditor of your choice
- Payroll for Labuan-based employees
Frequently asked questions
Are audited accounts really compulsory?
For most Labuan companies, yes. The exception is a non-trading (investment holding) entity that meets its economic substance requirements: for it, management accounts in the IRB's prescribed format are sufficient. A non-trading entity that does not meet the requirements, and every trading company, must have its accounts audited.
Can we use our own auditor?
Yes. We provide audit oversight and work with several approved audit firms in Labuan, and we can equally arrange for your accounts to be audited by an auditor of your choice.
What tax returns does a Labuan company file?
Both a company tax return and an employer tax return. Every Labuan company receives a Tax Identification Number on incorporation.
Does Sales and Services Tax apply?
SST is applicable where business is transacted with Malaysian residents.
Speak to us
We are the licensed trust company, so the advice and the filing come from the same place.
Talk to our KonsultanSources
The primary documents this page relies on, linked to the authority that issued them. If one has moved, tell us and we will correct it.
- Guidelines on tax-related matters, including substance requirements (opens in a new tab)
Labuan FSA · Guideline
Filing obligations and the tax treatment they attach to.
- Guidelines for Labuan companies (opens in a new tab)
Labuan FSA · Guideline
Accounting, audit and annual return requirements for a Labuan company.
- Acts administered by Labuan FSA — including the Labuan Companies Act 1990, the Labuan Business Activity Tax Act 1990 and the Labuan Financial Services and Securities Act 2010 (opens in a new tab)
Labuan FSA · Legislation
Last reviewed 4 August 2026
Whilst considerable care has been taken to ensure the information contained within this page is accurate and up to date, no warranty is given as to the accuracy or completeness of any information and no liability is accepted for any errors or omissions in such information. The information given in this page is based on our present understanding of the current laws, guidelines and regulations and may therefore be subject to change without notice.
Ready when you are
Talk to the firm that holds the licence.