What is a Labuan statutory audit?
A statutory audit is an independent examination of a company's financial statements conducted in accordance with the law. Its purpose is to provide assurance that the statements are accurate, complete, and comply with the applicable financial reporting framework. Our audits are performed under approved standards on auditing in Malaysia and International Standards on Auditing.
The auditor reviews the balance sheet, income statement, and cash-flow statement to confirm they are accurate and compliant, and assesses internal controls to guard against fraud and error.
Who must be audited?
Labuan licensed entities
Must submit audited financial statements to Labuan FSA within 6 months of the financial year end.
- Banks & investment banks
- Insurers, reinsurers, takaful & retakaful operators
- Trust companies & fund managers
- Leasing, money-broking & securities licensees
Other Labuan / investment-holding companies
Must lay audited (or unaudited) accounts at the members’ general meeting within 9 months of the financial year end.
- Tax charged at 3% or 24% on audited net profits for eligible activities
- Audited statements now filed with the IRB together with the tax return
Eligibility for the 3% Labuan tax rate
To qualify for the 3% rate, a Labuan entity must:
- Undertake business activities listed in P.U.(A) 423
- Fulfil substance requirements — minimum full-time employees in Labuan and minimum operating expenditure in Labuan
Recognised activities under P.U.(A) 423 include administrative, accounting, legal, backroom processing, payroll, talent management, agency, insolvency-related, and management services.
Why choose CWC & ENG
- Experienced chartered accountants versed in current standards
- Tailored services for each client
- Competitive, transparent pricing
- Proven track record across local and overseas Labuan companies
- Strong communication with minimal disruption
- Modern audit technology for efficiency and real-time access
Frequently asked questions
In conclusion
A Labuan statutory audit is both a regulatory requirement and a gateway to the preferential tax rate. Engaging an experienced approved auditor early ensures accurate reporting, smooth filing, and reduced compliance risk.
Engage an approved Labuan auditor
Transparent pricing, an efficient process, and an experienced team. Speak with a partner.