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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
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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.