FSA D-G: Almost all of over 5,000 companies in Labuan International Business and Financial Centre have complied with OECD substance requirement

LABUAN, Aug 23 — Almost all, or over 90 per cent of the more than 5, 000 Labuan holding companies operating in the Labuan International Business and Financial Centre , have complied with the Organisation for Economic Co-operation and Development’s economic substance requirement.

“The intention of the substance requirement is to ensure that actual business activities are operating within the Labuan IBFC, which is on the island of Labuan, so there must be substance. “This substance requirement is fair for the industry players to enjoy the tax incentive of 3 per cent when doing business activities, thus, generating revenue in Labuan.

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