Labuan-A Hidden Gem

7/28/2019 Labuan-A Hidden Gem

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LABUAN IBFC INC SDN BHD IS THE OFFICIAL AGENCY AUTORISED BY THE MALAYSIAN GOVERNMENT TOMARKET LABUAN AS THE PREMIER INTERNATIONAL BUSINESS AND FINANCIAL CENTRE IN ASIA PACIFIC

LABUANA HIDDEN GEM


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Labuan is a beautiful island in Sabah, Malaysia


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MODERN AND FLEXIBLE PRODUCTS

BUSINESS FRIENDLY LEGISLATION

STRATEGIC LOCATION

TAX EFFICIENCY


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Growth of Labuan Companies

LABUAN IS THE GATEWAY TO ASIA - WELL CONNECTED TO ALL

ASIAN MARKETS

4

Labuan is an island

located in East

Malaysia 8KM off

the coast of Sabah

Similar time zone

Similar culture

Close proximity


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BUSINESS FRIENDLY LEGISLATION

Labuan Financial Services And Securities Act

2010

Labuan Islamic Financial Services And

Securities Act 2010

Labuan Foundations Act 2010

Labuan Limited Partnerships And Limited

Liability Partnerships Act 2010

Labuan Business Activity Tax (Amendment) Act

1990

Labuan Financial Services Authority

(Amendment) Act 1996

Labuan Trusts (Amendment) Act 1990

Labuan Companies (Amendment) Act 1990

New Acts Amended Acts


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Growth of Labuan Companies

SOME SALIENT POINTS OF LABUANS ACTS

All in one financial

services act

First all in one Islamic

financial services act

Labuan company can

own controlling stake in

domestic company

Malaysians can use

Labuan

Introduction of Labuan

Foundations Act


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Modern and Flexible Products


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Many Wealth Management Products To Choose From

Charitable Trusts

SpendthriftTrusts

Purpose Trusts

Special

Trusts

Mutual Funds

Fund Management

License

Fund Administration

License

ISLAMIC

Securities License

Private

Trust Company

Foundation

Banking License

Insurance/ Re-

insurance License

Labuan Foreign

Exchange (LFX)

Trust Company/

Managed Trust Co

Labuan Company/SPV

Protected CellCompany


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Trusts andFoundations


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5 KEY ADVANTAGES OF LABUANS TRUSTS &

FOUNDATIONS

Clear definition and prescription for thesetting-up of different types of trust and

foundation provided by laws

A trust and foundation can be in perpetuity

Protected from foreign claims and cannot be

forcefully liquidated.

Modern instruments such as Special Trust and

Foundation allowed settlor/ founder to retain

control

Enable the creation and recognition of Islamic

trusts and foundation


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MUTUAL FUNDS

AND FUND

MANAGEMENT


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LABUAN MUTUAL FUNDS PRIVATE AND PUBLIC

Private Fund Public Fund

No more than 50 investors with a min.

initial investment of not less than RM250K

(US$83K) or its equivalentOr

No max. number of investor but with a

min. initial investment of not less than

RM500K (US$166K) or its equivalent

Other than fund recognised as Private

fund.

Fund approved by the Ministry of Finance

as a public fund.


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SUPPORT MULTICLASSmulti currency/ asset class/ fee and soon.

FLEXIBLE STRUCTURE - A fund can be structured as Labuan

company, a corporation incorporated under the laws of a

recognised country or jurisdiction, a partnership, a protected

cell company (PCC) or a unit trust.

5 KEY ADVANTAGES OF LABUANS MUTUAL FUNDS

Private Fund

Public Fund

NO CAPITAL OR FOREIGN EXCHANGE CONTROL

NO STAMP DUTY

ONLY REQUIRED TO NOTIFY Only required to notify the

Labuan Authority by lodging the prospectus for registration

NOT REQUIRED TO BE LICENSE IN LABUAN

ALLOWED TO MANAGE THE FUND FROM ANY COUNTRY

IN ADDITION..


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PRIVATE FUND HASSLE FREE

Private Islamic/ Conventional

Mutual FundOnly required notification to the Authority by

submitting the information memorandum

Not required to be licensed as fund manager in

Labuan

No minimum capital requirement to set-up

fund management company for private fund

No restriction on investment limit andexposure

A private fund can be managed by fund

manager outside Labuan/ Malaysia

Private Mandate

Private Equity

REIT/ property Fund

Special Interest Fund

Equity/ Bond Fund

Hedge/ Structured


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FUND MANAGEMENT & ADMINISTRATION LICENSES

Fund Management License

(for public fund )

Fund administration services

Fund manufacturing services

Fund management services

Investment advisory services

Allowed to offer:

Requirements:

1. Individual or corporation licensed to

carry on fund management services

by a recognised jurisdiction.

2. A minimum paid-up capital of

equivalent to RM300K (US$100K).3. Fit and proper criteria for CEO.

4. Adequate resources.

5. Office address in Labuan.


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Simple and Straight Forward


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LABUANS SIMPLE TAX STRUCTURE

Beneficiary/ Investor

0% tax on capital/income/ dividendsdistribution

Labuan trading income:

3% Tax or RM20,000 p.a.

(can elect on yearly basis)

Labuan non-trading income -

0% Tax p.a.

Labuan

Entity

No witholding tax


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Other Benefits..


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Snapshot Of Islamic Finance Industry In Labuan IBFCOTHER KEY BENEFITS

Consolidation of Islamic laws

under one act.

No exchange / capital controls, stamp duty, capital

gains & withholding taxAccess To Asia Pacifics Largest Double Taxation

Agreement network (62)

No exchange controls, stamp duty or indirect

tax, no capital gain tax, no inheritance tax

Advance Tax Ruling. Provides certainty and clarity.

An application can be made to the income tax

authority to obtain a written statement setting out

the tax structure applicable to a transaction or

business .

No tax on foreign director fee

50% tax exemption on foreign staff in managerial

position


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Snapshot Of Islamic Finance Industry In Labuan IBFCLABUAN IBFC TODAY AND THE FUTURE

LABUAN HOLDCO

Co-location - Today:

Labuan holding companies and

banks are permitted to set up full

operational and marketing offices in

Kuala Lumpur


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1. Strategically Connected

2. Business Friendly Legislation

3. Modern and Flexible Products

4. Tax Efficiency


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THANK YOU

LABUAN INTERNATIONAL BUSINESS & FINANCIAL CENTREINCORPORATED SDN BHD (817593 D)

MARKETING OFFICE: SUITE 3, LEVEL 11, BLOCK 2B, PLAZA SENTRAL

JALAN STESEN SENTRAL, KL SENTRAL, 50470 KUALA LUMPUR, MALAYSIA

TEL +603 2773 8977 FAX +603 2780 2077

www.LabuanIBFC.my

LABUAN IBFC IS THE OFFICIAL

AGENCY SANCTIONED BY

THE MALAYSIAN GOVERNMENT

TO MARKET LABUAN AS THE

PREMIER INTERNATIONAL

BUSINESS AND FINANCIALCENTRE IN ASIA PACIFIC


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Disclaimer

This presentation should not be regarded as offering a complete

explanation of the tax matters referred to and is subject to changes

in law. It is not intended to be a substitute for detailed research or

the exercise of professional judgment. Labuan IBFC cannot accept

any responsibility for loss occasional to any person acting or

refraining from action as a result of any material in this presentation.

Labuan-A Hidden Gem

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