Accounting Services in Labuan: Bookkeeping and Payroll

Our accountants in Labuan handle the daily bookkeeping, payroll, financial reporting and ongoing compliance work on both local and foreign-owned companies.

Quick Facts
Services offered by our accountants in Labuan	– bookkeeping, – payroll, – preparing financial statements, – tax planning, – audits, – filing annual returns, – financial consultancy, etc.
Deadline for filing corporate tax returns	Within 7 months after the end of the accounting period (electronic Form LE1, self-assessment from YA 2025)
SST registration (similar to VAT)	Generally, companies are not required to register for SST, unless in specific cases. Our accountants can offer more details.
Assistance with accounting documents	We prepare balance sheets, cash flow, and income statements as part of our services.
Fiscal year	Any 12-month accounting period chosen by the company (not necessarily the calendar year)
Accounting standards in Labuan	The International Financial Reporting Standards (IFRS)
Accounting when opening a company in Labuan	It is advised to consult an accountant when you set up a company in this jurisdiction.
Audit required (YES/NO)	YES, for trading companies
Confidentiality of accounting documents	Documents are kept private, unless there is a legal obligation to disclose them.
Forensic accounting services (YES/NO)	YES
Invoicing	We handle the issuance, recording, and management of invoices.
Property financial matters services	– property management budget, – tax planning, – financial analysis, – overseeing financial transactions, etc.
Corporate tax rate in Labuan	– 3% (trading companies), – 0% (non-trading companies)
Number of double taxation treaties	70 (approx.)
Why choose our accountants in Labuan	– personalized services, – cost-effective team, – familiarity with international accounting practices, – expertise in Labuan offshore companies, etc.

What types of accounting services do you offer in Labuan?

Among the services our team of accountants in Labuan can offer, we mention the following:

payroll and bookkeeping for companies in Labuan;
support for VAT registration and tax filing, in compliance with the business type you have in Labuan;
invoices payments and the control of the bank accounts in your firm;
tax minimization methods and tax advice if they are necessary to run your business and activities properly;
periodical or the annual financial statements, trial balance, cash flow statements, transaction entries.

Our team of advisors are familiar with the accounting programs and software accepted at an international scale and can suitably handle your financial matters.

Do companies in Labuan need to hire an accountant?

Foreign investors who open a company in Labuan often choose to work with our local accountants, especially when they are not familiar with Malaysian accounting and reporting procedures.

An accountant can set up the company’s financial records from day one, draft the required statements and handle recurring tasks like bookkeeping and payroll.

For foreign investors running the business from abroad, outsourcing is often a good option. Local support keeps the accounting accurate and up to date without your presence in Labuan.

What are the main provisions for accounting in Labuan?

Here are some of the key accounting and reporting requirements companies in Labuan should consider:

accounting records: these are the records that are used as proof for the financial transactions as well as the existing agreements between entities;
validity period: the documents mentioned above are to be stored for at least six years from the date of the transaction;
penalties: failure to comply with the proper keeping of records as well as the reporting requirements results in penalties as per the laws in force.

What is bookkeeping in Labuan?

Keeping the financial records of your business in Labuan is called bookkeeping. All the financial transactions are recorded and kept for several years, with respect to the Malaysian legislation in the accounting field. All invoices are normally saved in the company with the help of bookkeeping.

According to law, for the purpose of the accounting directive set forth in Labuan, the bookkeeping records are to explain all of the transactions. They can be either physical or stored via an electronic means. Some examples are: invoices, cheques, payment orders, receipts, letters of offer and others.

What is payroll in Labuan?

Payroll means working out what each employee gets paid, while keeping tabs on deductions, taxes, contributions and the paperwork that goes with it.

Our accounting firm in Labuan can handle the salary calculations, put together payslips, maintain the payroll records and sort our statutory deductions.

What are the audit requirements in Labuan?

Apart from the general accounting and reporting principles, company owners in Labuan also need to observe the guidelines for auditing. This activity is especially important for companies in the banking sector as well as for those that provide other types of financial activities.

When appointing an external auditor, certain criteria are to be observed, such as the fit and proper principle issued by the Labuan Financial Services Authority.

The auditor must have the skills, knowledge, and experience to perform the activities according to the currently approved auditing standards. The external auditor must have an operational office in Labuan.

What documents are needed for accounting in Labuan?

Companies in Labuan should keep documents that support their financial transactions and allow the preparation of accurate accounting records. These may include:

sales and purchase invoices;
receipts and payment confirmations;
bank statements;
contracts and agreements;
payroll records;
cheques and payment orders;
documents related to company expenses and income.

What are the annual accounting requirements for a company in Labuan?

Companies in Labuan must comply with the general requirement of keeping proper accounting records in a location in Labuan. These relevant documents must be ready for inspection, in case one is requested.

The annual return is submitted to the Financial Services Authority every year and the deadline to this submission is thirty days before the yearly anniversary of the company’s incorporation.

A certificate from the company director is requested with the annual submission and, in some cases, this annual report is also accompanied by a relevant certificate issued by an approved auditor.

When should a Labuan company start using accounting services?

From the beginning of its business activity, rather than waiting until the first annual filing deadline. Getting accounting help early means every financial documents gets recorded properly from day one.

For foreign investors, working with our local accountants from the start can make it easier to understand the reporting requirements and avoid gaps in the company’s financial records.

Why work with your local accountants in Labuan?

We know the accounting, reporting and record-keeping rules that apply to companies in Labuan. That matters for foreign investors running things from abroad, who might not be up to speed on local procedures.

Our accountants in Labuan handle day-to-day bookkeeping, payroll and compliance matters, while taking care of the company’s recurring accounting deadlines. A local team cuts down the administrative load for foreign business owners. It also keeps financial records in proper order.

If you would like to know more about the accounting services for your company in Labuan, we invite you to contact our team of accountants in Labuan.