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Answer: Labuan belongs to the Malaysia, but it has a uniform low tax rate of 3%, tax exemption for companies that conduct Labuan business activities, such as withholding tax exemption for payment to non-residents, tax exemption for compensation for foreign directors, etc. · Trading Company conducting business activities: 3% Revenue signed by Labuan will be subject to 3% tax. (※ Business activities ex: banking, insurance, fund management, leasing etc.) · Non Trading Company does not conduct business activities: 0% (tax exempt) Labuan company do not conduct business activities are tax exempt and do not need legal audit by Auditor (* Non-business activities ex: Securities transactions: stocks and bonds, loans, deposits, real estate investment etc.). · When both of the above are done by the same Labuan company: 3% In the case of Labuan company conducting both activities, it is regarded as a Labuan company conducts commercial activities.