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Answer: Labuan business activities are business or non-business transactions conducted on Labuan Island or through Labuan entities, excluding activities that violate the law. Labuan Business Activity Tax (Requirements for Labuan Business Activity) Regulations 2018 (the "Rules") are required to meet the requirements for full-time minimum number of employees and minimum annual cost in Labuan. By regulations, entities that are not listed as Labuan entities or do not meet the required requirements are considered not doing Labuan business activities and are subject to the Malaysian Income Tax Act 1967. * General Labuan companies do not hold licenses are not covered by the above.