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GOING OR GONE REGIONAL? STRUCTURING YOUR BUSINESS EXPANSION VIA
LABUAN INTERNATIONAL BUSINESS AND FINANCIAL CENTRE (LIBFC)
20 September 2016
WELCOME REMARKS
YBHG DATUK WIRA JALILAH BABA
PRESIDENT, MALAYSIAN INTERNATIONAL CHAMBER
OF COMMERCE AND INDUSTRY (MICCI)
OPENING REMARKS
DANIAL MAH ABDULLAH
CEO, LABUAN IBFC INC.
AN INTRODUCTION TO LABUAN IBFC
ASIA PACIFIC’S MIDSHORE INTERNATIONAL BUSINESS
AND FINANCIAL CENTRE
Where is Labuan?
Off the coast of Sabah, East Malaysia Federal Territory About 100,000 population Common time zone with major cities Where business meets leisure
6
What is Labuan IBFC?
Our Vision To be Asia Pacific’s leading midshore international business and financial centre
Striking an ideal balance between client confidentiality and international best standards
• International business and financial centre
• A tax-efficient jurisdiction to facilitate businesses, trading, investments
and etc., through financial services and legal structures
• Well-balanced legal and regulatory framework
7
Connecting Asia’s Economies
70% of Labuan Companies are Asian-based
(as at 2014) 8
Internationally Recognised
Group of International Finance Centre Supervisors (GIFCS) Member since 1999
International Organisation of Securities Commissions (IOSCO) Member since 2003
Group of International Insurance Centre Supervisors (GIICS) Member since 1999
International Association of Insurance Supervisors (IAIS) Member since 1998
Islamic Financial Services Board (IFSB) Member since 1998
Asia/Pacific Group on Money Laundering (APG) Member since 2000
Labuan IBFC Adheres to OECD’s International Standards and Best Practices
International Islamic Financial Market (IIFM) Member since 2002
9
Comprehensive 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 Act 1990
Labuan Financial Services Authority Act 1996
Labuan Trusts Act 1996
Labuan Companies Act 1990
10
An Ecosystem of Solutions
Services
• Banking
• Insurance – Risk Management
• Corporate secretarial
• Legal services
• Administrative activities
• Trusteeship
• Accounting
Structures
• Holding company
• Trading company
• Protected cell companies
• Captive Insurance
• Company limited by shares and guarantee
• Limited partnership
• Limited liability partnership
• Trusts, including purpose trusts
• Foundations
Available in conventional and Shariah-compliant forms
Marketing offices may be located in Kuala Lumpur or Iskandar Malaysia (north of Singapore) 11
Business Activities
Source: Statistics from Labuan FSA’s Annual Report 2015
Banking (54)
•Wholesale banking
•Investment banking
•Loans/deposit
•Financial guarantees
•Trade finance
Leasing (374)
Companies (12,470)
• Investment holding
• Trading
•Life/general
•Broking
•Captives
•Re-insurance
Insurance (209)
•Company incorporation
•Company administration
•Corporate secretarial
•Trustee services
Trust Cos. (43)
•Aviation
•Shipping
•Heavy machinery
Wealth Management
(more than 300)
Commodity Trading
(43)
•Business succession
•Estate management
•Legacy planning
•Oil and gas
•Agriculture
•Minerals
Unique Tax Systems
Flexibility
0% Investment
holding
3%
RM 20,000
Election for Income Tax Act
1967
Irrevocable election
13
Labuan IBFC - Fiscal Incentives
Withholding tax exemption on dividends, interest, royalties, service fees, lease payments
50% exemption on gross employment income of non-Malaysian professional, managerial staff
100% exemption on director fee paid to non-Malaysian director
Stamp duty exemption
No exchange control
Access to most of Malaysia’s 80 double taxation agreements 14
Double Taxation Agreements Network
ALBANIA ARGENTINA AUSTRALIA AUSTRIA BAHRAIN BANGLADESH BELGIUM
CROATIA
IRAN IRELAND ITALY JAPAN JORDAN KAZAKHSTAN KOREA KUWAIT KYRGYZ LAOS LEBANON LUXEMBOURG
MALTA MAURITIUS MONGOLIA MOROCCO MYANMAR NAMIBIA NETHERLANDS
POLAND QATAR ROMANIA RUSSIA
BOSNIA HERZEGOVINA
BRUNEI CANADA CHILE CHINA
DENMARK EGYPT FIJI FINLAND FRANCE GERMANY HONG KONG HUNGARY INDIA INDONESIA CZECH REPUBLIC
NEW ZEALAND
NORWAY PAKISTAN PAPUA NEW GUINEA
PHILIPPINES
SAN MARINO
SAUDI ARABIA
SEYCHELLES SINGAPORE SOUTH AFRICA
SPAIN SRI LANKA SUDAN
SWEDEN SWITZERLAND SYRIA THAILAND TURKEY TURKMENISTAN UAE UK USA UZBEKISTAN VENEZUELA VIETNAM
Why Labuan IBFC?
• Developed legal framework providing a wide array of products and services
• Tax efficiency and flexibility; e.g. Labuan or onshore tax option
• Malaysia is ranked 18th/ 189 - World Bank's Ease of Doing Business Report 2015
• Cost effective, One third the cost of Singapore/Hong Kong
• Professional expertise and services
• Re domiciliation to or from Labuan IBFC of companies and structures allowed
• Ability to create economic substance on Labuan island or Malaysia, onshore
• Same time zone as all key Asian cities, including Singapore, Hong Kong
• Labuan Companies accepted as a listing vehicle on: National Stock Exchange of Australia, Hong Kong Stock Exchange and Singapore Stock Exchange
16
25 Years and Growing…
• Reputation and Track Record
• Connecting Asia’s Economies
17
GOING OR GONE REGIONAL? STRUCTURING YOUR BUSINESS EXPANSION VIA
LABUAN INTERNATIONAL BUSINESS AND FINANCIAL CENTRE (LIBFC)
CHEE PEI PEI DELOITTE TAX SERVICES SDN BHD
Agenda
Overview of Labuan Taxation System
Labuan IBFC in Cross Border Dealings
Local and International Tax Developments
19
Overview of Labuan Taxation System
LABUAN TAX SYSTEM
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Labuan Tax System
Corporate Tax : Under the purview of the Labuan Business Activity Act 1990 (“LBATA”) Definitions: • Labuan Company – means a Labuan company incorporated under the
Labuan Companies Act 1990, and includes a foreign Labuan company registered under that Act.
• Labuan Business Activity - means a Labuan trading or a Labuan non-trading activity carried on in, from or through Labuan in a currency other than Malaysian currency, by a Labuan entity with non-resident or with another Labuan entity (with certain conditions).
21
Labuan Tax System (Cont’d)
Labuan Tax System 3% tax or RM20,000 upon election
All chargeable profits derived from Labuan
Business Activity
Capital gains included in net
profits Claim for Zakat paid for a year of assessment
22
Labuan Tax System (Cont’d)
Labuan Business Activity Tax Act 1990 (LBATA)
Labuan Trading Activity Labuan Non-Trading Activity
3% of audited net profit RM20,000 Not chargeable to tax
"Labuan trading activity" includes banking, insurance, trading, management, licensing, shipping operations or any other activity which is not a Labuan non-trading activity.
"Labuan non-trading activity" means an activity relating to the holding of investments in securities, stock, shares, loans, deposits or any other properties by a Labuan entity on its own behalf.
Exceptions: - Dealings with residents - Dealings in Ringgit Malaysia 23
Labuan Tax System (Cont’d)
Labuan Trading Activity Both Labuan Trading and Non-Trading
Activity
Labuan Non-Trading
Activity
Non-Labuan Business Activity
• 3% of net profits per audited accounts; or
• RM20,000 upon election; or
• Irrevocable to be taxed under Income Tax Act, 1967 (“ITA”)
• Taxed as Labuan Trading Activity
• Not subject to tax
• Taxed under ITA
24
Double Taxation Agreements (DTAs)
• There are currently 73 effective DTAs in force which Malaysia has entered into with other countries. (Note)
• 14 countries specifically exclude Labuan from DTA:- • Australia, Chile, Germany*, India*, Indonesia, Japan, Korea,
Luxembourg, Netherlands, Seychelles, South Africa, Spain, Sweden, United Kingdom
* Labuan company is included in DTA if it elects to be taxed under the Income Tax Act, 1967.
Note: Status as at 26 August 2016 from IRB’s website.
25
Double Taxation Agreements (DTAs) (Cont’d)
Types of income Non-treaty rates Reduced DTA rates for payment made to MY
Dividends 10% 10%
Interest 15% 10%/15%
Royalties 15% 15%
Capital gains 15% 15%
Example: Thailand
Types of income Non-treaty rates Reduced DTA rates for payment made to MY
Dividends 0 0
Interest 0/5% 0/5%
Royalties 10% 10%
Capital gains No withholding tax No withholding tax
Example: Vietnam
26
Double Taxation Agreements (DTAs) (Cont’d)
Types of income Non-treaty rates Reduced DTA rates for payment made to MY
Dividends 0 0
Interest 15% 0/10%
Royalties 10% 10%
Capital gains No withholding tax No withholding tax
Example: Brunei
Types of income Non-treaty rates Reduced DTA rates for payment made to MY
Dividends 10% 5%/10%
Interest 10% 0/10%
Royalties 5% 5%
Capital gains No withholding tax No withholding tax
Example: Laos
27
Double Taxation Agreements (DTAs) (Cont’d)
Certificate of Residence (“COR”)
COR, issued under the Income Tax Act 1967 enables Malaysian tax resident to claim tax benefits under the DTA, to avoid being tax twice on the same income. “Resident" means-
(a) in relation to a natural person, a citizen or a permanent resident of Malaysia; or
(b) in relation to any other person, a person who has established a place of business, and is operating, in Malaysia,
and includes a person who is declared to be a resident pursuant to subsection 43(2) of the Exchange Control Act 1953;
28
Double Taxation Agreements (DTAs) (Cont’d)
Key factor: Management and control of the company • At least one meeting of the board of directors is held in Malaysia • Refers to controlling authority which determines the policies to be followed
by the company
The COR application should be submitted to the Inland Revenue Board (“IRB”) Labuan Branch and the COR granted is valid for one year of assessment.
29
Tax Filing
• Submission deadline – 31 March each year (i.e. within a period of 3 months from the commencement of a year of assessment)
• In practice, the filing deadline is normally extended to end of May.
• Full payment of tax at time of filing of tax return.
• Labuan entities must file the relevant form(s) applicable to them:-
Type of form
Return of Profits – Labuan trading activity Form LE1
Irrevocable election to be taxed at RM20,000 Form LE2
Irrevocable election to be taxed under the ITA Form LE3
Statutory declaration under Section 5/7/8 of the LBATA Form LE4
Statutory declaration – Labuan non-trading activity Form LE5 30
Tax Exemptions
Income received by Labuan Entities Payment made by Labuan Entities
Dividend
Dividend Distribution by Labuan trust Royalty paid to non-resident or another
Labuan entity Interest paid to resident/non-resident (other
than a person carrying on banking or insurance business) or another Labuan entity
Technical fee paid to non-resident or another Labuan entity
Payment made to non-resident for the use of moveable properties by a Labuan licensed leasing company
Other gains or profits under Section 4(f) of ITA paid to non-resident
31
Tax Exemptions (Cont’d)
Individual tax Other tax benefits
• 50% tax abatement for expatriate professionals and managers.
• 100% exemption for director’s fees received by non-citizen directors.
No stamp duty/ import duty/ exchange control. Supplies of goods or services (except for the supply of freight services) within or between designated areas (DA) are not subject to GST.
32
Labuan Tax Incentives
Incentives under the Global Incentives for Trading (GIFT) programme • Available to a Labuan international commodity trading company (“LITC”)
which uses Malaysia as its international trading base.
• A LITC is allowed to established its operational office anywhere in Malaysia so long as it maintains a registered office in Labuan.
• A LITC is taxed at 3% of audited net profits while a LITC set up purely as a liquefied natural gas (“LNG”) trading company is entitled to 100% income tax exemption on chargeable profit for the first 3 years of its operation provided the LITC is licensed before 31 December 2014.
33
Election to be taxed under the ITA
Section 3A - Labuan business activity chargeable to the ITA upon election. (1) Notwithstanding any other provision of this Act, a Labuan company carrying on a Labuan business activity may make an irrevocable election in the prescribed form that any profit of the Labuan entity for any basis period for a year of assessment and subsequent basis period to be charged to tax in accordance with the Income Tax Act 1967 in respect of that Labuan business activity.
34
Transacting with Malaysian Resident
Transaction allowed with Malaysian
Resident [Section 7(6)]
Licensed banking, insurance or
financial business
Makes or maintains deposits
Administrative and statutory requirement
Lease of properties for office or staff
accommodation
MY resident hold shares in Labuan
company
Holding of shares, debt obligations
or other securities in MY company
The lifting of notification in June 2010 – liberalization which further facilitate the setting up of Labuan International by Malaysian companies and individuals for non-Ringgit business and transactions. 35
Advantages Registering Labuan Company
Individual tax Labuan International Company Malaysian Foreign Company
a) Ownership All types of businesses operate under Labuan International Company can have 100% foreign ownership
Specific business does not allow 100% foreign ownership
b) Flexibility of corporate tax and audit
1) Dormant – No tax/audit 2) Investment holding – No
tax/audit 3) Trading business – 3% of
net profit or RM20,000
Foreign company (24%) unless qualifies as a SME company Tax on 1st RM500,000 : 19% Subsequent : 24%
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Advantages Registering Labuan Company (Cont’d)
Individual tax Labuan International Company Malaysian Foreign Company
c) Initial set up cost • No paid up capital to start up • No physical office • No trade license • Appointment of secretarial,
audit is optional
• Minimum paid up: RM1mil • Required set up function
office with tel no. • Permission is required for
foreign ownership • Must appoint secretarial, tax
and audit
d) Business Visa for expatriates
• 2 years renewal readily available to facilitate smooth entry to Malaysia
• Paid up capital RM250,000 can be done right after registration of company is completed
• Approval within 30-45 days
• Minimum paid up capital of RM350,000 to RM1mil depends on justification for the visa application
• Take 3 to 4 months
37
Advantages Registering Labuan Company (Cont’d)
Individual tax Labuan International Company Malaysian Foreign Company
e) Personal income tax • No tax for foreign director • Tax rate @ 50% - for expatriate
employment
• Visa issued for expatriates must have minimum salary of RM5,000, a total of RM60,000 per year
• Taxed at 0-26% if stay > 182 days
• If < 182 days: flat 26%
f) Easy management and invoicing
• Must be issued in any foreign currency
• Onshore banking and offshore banking
• No GST
• Must be issued in RM or RM equivalent
• Subject to GST on taxable supply if annual taxable turnover exceeds RM500,000
38
LABUAN IBFC IN CROSS BORDER
DEALINGS
Labuan Trading Company
Supplier of goods (e.g. US, China,
Japan) Labuan Trading Company (LTC)
Buyer/ Customer (e.g. China, Japan,
Europe)
Sell goods
Goods
Physical flow
• Low tax regime • Exemption on WHT (royalty/interest/management fee paid by LTC) • Franking of dividend by LTC (tax-exempt) • No custom duties/ No GST • Access to treaty benefits (DTAs)
Related Service Company
Sell goods
Undertake add on process and sell back
Physical flow
Sell goods/ Issue invoice
40
Labuan Leasing Company
Foreign Lessor (asset owner)
Labuan Leasing Company (LLC)
Malaysian Lessee
Overseas Lessee
Lease
Sub-lease
Lease payment (no WHT)
Lease payment (no WHT) Lease
payment (reduced WHT)
Benefits: • No WHT on lease payments
from Malaysian lessee to LLC and from LLC to foreign lessor
• May rely on the reduced WHT rate on lease payment received by LLC from overseas lessee
• LLC subject to tax at 3% of audited net profit or RM20,000
• No stamp duty on lease agreements
RM20,000 fee payable for each transaction
Leasing by Foreign Company via Labuan
41
Labuan Leasing Company (Cont’d)
Operational Requirements and Fees for a Labuan Leasing Company:-
• Required to submit to the Supervision and Enforcement Department of Labuan FSA within six (6) months after the close of each financial year, a copy of its audited financial statements.
• Required to provide statistics and information as required by the Labuan Financial Services Authority.
• If transacts with Malaysian residents: Annual fee RM60,000, each subsequent lease application RM20,000.
• If transacts with non-residents / other Labuan companies only : Nil fee (but still have to submit application for each transaction).
42
Labuan Leasing Company (Example)
Foreign Financier
Malaysian Company
Malaysian Lessee Overseas Lessee
Loan
Lease
WHT on interest payment
Lease payment WHT on
lease payment 10% (royalty)
Tax Implications
Malaysian company USD Lease rental (Malaysia) 50 mil Lease rental (Overseas) 50 mil 100 mil Less: Depreciation of asset (40 mil)
Less: Interest (5 mil)
Chargeable income 55 mil
Tax payable @ 24% 13.2 mil
Cash flow disadvantage 10% WHT on lease rental (creditable 5 mil against Malaysian tax payable)
Financing 15% WHT on interest (RM5 mil 0.75 mil X 15%)
WHT may be reduced depending on country of tax residence.
Leasing via Malaysian Company
43
Labuan Leasing Company (Example)
Foreign Financier
Labuan Company
Malaysian Lessee Overseas Lessee
Loan
Lease
WHT on interest payment
Lease payment WHT on
lease payment 10% (royalty)
Tax Implications
Leasing via Labuan Company
Current Structure
USD
Proposed Structure
USD
Corporate tax 13.2 mil 5,000
WHT on lease payment from overseas lessee
Offset against tax payable
5 mil
WHT on interest
0.75 mil No WHT
WHT on lease payment may be reduced depending on country of tax residence.
44
Labuan Holding Company
Foreign Company
Labuan Holding Company
WHT exemption
Income not subject to tax
• Dividend income received by Labuan company is exempted from income tax
• There is no capital gains tax • WHT exemptions (certain payments
from Labuan company to Foreign Company)
• No stamp duties on instruments executed by Labuan Holding Company
• Access to benefits under Malaysia’s DTAs, in particular reduced WT rates
Foreign Company
Preferential WHT on dividends (based on DTA)
Debt/ Equity
Dividend distribution no WHT
45
LOCAL AND INTERNATIONAL
TAX DEVELOPMENTS
Legitimacy of Labuan Structures
• The IRB disregard the payments for the leasing of the vessels made by the taxpayer to the Labuan company
• Basis: No Substance
• The IRB demanded that the taxpayer
pay withholding taxes and penalties >RM500 million
• IRB’s appeal dismissed
• Conclusion: Tax structures are legitimate and within the framework of the law
Taxpayer
Labuan company
Non-resident Vessel-owing
company
Lease vessels
Sub-lease vessels
Lease payments
Lease payments No WHT
47
Disclosure for Form e-C
With effect from year of assessment 2016, companies are required to declare whether there are subsidiaries / related parties in Labuan in the Form e-C. Field R6 of the Form e-C:-
48
Substance in Labuan
Economic substance is essential
• Functions, assets and risks
• Business flow
• Goods
• Finance
• Intangibles
• People
• Services
49
Substance in Labuan (Cont’d)
• The Labuan entity must actually exist. • Beneficial owners of the profits to be derived from its business operation
in Labuan. Proof of Substance in Labuan entity:- i. Office, facilities, assets ii. Personnel iii. Location of top management iv. Bank account v. Sales proceeds
50
Substance in Labuan (Cont’d)
i. Office, Facilities, Assets
• Must maintain own office space. Office space can be acquired or leased. No hard and fast rules on the size, but reasonable enough to carry out the trading operations.
• Merely having a registered office is not acceptable. In other words, the use of a “paper company” will not achieve economic substance.
• Have all necessary services and facilities, including telephone, emails, fax and telex, for the carrying out of the business operations.
• All correspondences, such as letters, invoices and payment voucher, must be prepared using stationery with letterhead bearing the name and registration number of the Labuan entity.
51
Substance in Labuan (Cont’d)
ii. Personnel
• Must employ own employees. • No hard and fast rules on the number of employees, but reasonable
enough to carry out the trading operations. Merely providing data entry, accounting entry or invoice generating services are not sufficient.
• Key personnel performing important duties, such as management, negotiation, purchasing and selling, should be under the employment of Labuan entity and not merely on secondment basis.
• Key personnel must be employed by the Labuan entity. Other local employees should be employed, if necessary, to undertake various duties including those that are of general and administrative nature.
52
Substance in Labuan (Cont’d)
iii. Location of Top Management
• It is important to ensure that key personnel are based Labuan to ensure that the key decisions, negotiations and conclusion of purchase/sale contract etc are carried out in Labuan.
• Although there are no specific rules, at the very minimal, it is recommended that at least one key personnel who has the authority to negotiate and conclude contracts and can make important business decisions be based in Labuan permanently. This key person can be supported by the other key personnel that may need to travel.
53
Substance in Labuan (Cont’d)
iv. Bank Account
• The Labuan entity must maintain its own bank account for all trade receipts and payment entered in during its daily business transactions. This should be a bank located in Labuan, be it a local or foreign bank.
v. Sales Proceeds
• Sales proceeds from all trading activities of the entity should be received in Labuan through its bank account.
54
OECD’s BEPS Action Plan
Base Erosion and Profit Shifting (BEPS) What exactly is BEPS? BEPS simply means a strategy used by MNCs (including MNCs headquartered in Malaysia) to achieve global tax efficiencies by taking advantage of the tax treaties, differences in taxation systems and treatment of income/expenses in different jurisdictions. On 5 October 2015, the Organisation for Economic Co-operation and Development [OECD] released the final action plan in relation to BEPS. The G20 in their summit at Turkey on 15 and 16 November endorsed the package of measures and strongly urged the timely implementation of the project and encouraged all countries and jurisdictions, including developing ones, to participate. There are 15 action plans under the BEPS.
55
OECD’s BEPS Action Plan (Cont’d)
Sixty-two countries have collaborated on BEPS: Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belgium, Brazil, Canada, Chile, Colombia, Costa Rica, People’s Republic of China, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kenya, Korea, Latvia, Lithuania, Luxembourg, Malaysia, Mexico, Morocco, Netherlands, New Zealand, Nigeria, Norway, Peru, Philippines, Poland, Portugal, Russian Federation, Saudi Arabia, Senegal, Singapore, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, Tunisia, Turkey, United Kingdom, United States and Vietnam. Regional organisations: ATAF, CREDAF, CIAT IMF, World Bank, UN 56
OECD’s BEPS Action Plan (Cont’d)
MY Co
X Co
Malaysia
Country X
100% Dividend WHT@ 30%
MY Co
Y Co
X Co
Malaysia
Country X
Country Y
Dividend WHT@0%
Dividend WHT@ 10%
Example 1: Treaty Shopping (Action No.6)
57
OECD’s BEPS Action Plan (Cont’d)
Domestic law change Transfer Pricing Treaties Monitoring
Recommendations for national law, regulations, or administrative practice
Changes to the OECD’s Transfer Pricing Guidelines
Signing of multilateral instrument, and changes to the OECD Model Treaty & Commentary
Monitoring / reporting by OECD / Global Forum
• Action 1: Digital Economy
• Action 2: Hybrid mis-matches
• Action 3: CFCs
• Action 4: Limiting interest deductions
• Action 5: Harmful tax practices
• Action 12: Mandatory disclosure
• Action 13: TP documentation (incl CbC)
• Actions 8 – 10: Assure that transfer pricing outcomes are in line with value creation
‒ What type of “adoption” needs to happen in each country?
‒ Grandfathering?
• Action 2: Hybrid mis-matches
• Action 6: Treaty abuse
• Action 7: Permanent establishments
• Action 14: Dispute resolution
• Action 15: Multilateral instrument
• Action 5: Harmful tax practices
• Action 11: BEPS information
• Action 13: TP documentation (incl CbC)
• Action 14: Dispute resolution
58
Tax Transparency FATCA and CRS
Increased global transparency of account information presents unique challenges and requires a global, scalable solution
An evolving landscape…
59
Tax Transparency FATCA and CRS (Cont’d)
Labuan financial institutions are required to comply with FATCA and CRS.
Domestic tax authorities
Reporting Financial Institutions
Reporting
Controlling Person(s)
Individual
Account Holders
Due Diligence
Entity
Account
Holders
Foreign tax authorities in countries of
Account Holders and Controlling
Persons
Reporting under FATCA
AEOI
60
Conclusion - Why Labuan?
• Strategic location
• Simple, clear and straightforward tax system
• Favourable tax benefits for the businesses as well as non-citizen
individuals
• Access to Malaysia DTAs
• One-stop Regulatory Authority – Labuan FSA
• Ease of set up of Labuan entities
• Compliance with International Standards
• Lower cost of operations (as compared to Hong Kong and Singapore)
61
Q & A SESSION
Panel Discussion:
How can Malaysian Home Grown Businesses Develop into Regional Powerhouses?
Moderator
Hiu Chee Fatt, Director, Business Development, Labuan IBFC Inc.
Panelists Chee Pei Pei, Financial Services and Insurance Leader, Deloitte Malaysia
Goh Ka Im, Partner and Head of Tax & Revenue Practice Group, Shearn Delamore & Co Colin Paul Seah, Council Member, Association of Labuan Trust Companies (ALTC)
Disclaimer
This presentation should not be regarded as offering a complete explanation of the 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. The republication, reproduction or commercial use of any part of this presentation in any manner whatsoever, including electronically, without the prior written permission from Labuan IBFC Inc. is strictly prohibited.
LABUAN IBFC INC SDN BHD IS THE OFFICIAL AGENCY ESTABLISHED BY GOVERNMENT OF MALAYSIA TO POSITION LABUAN IBFC AS THE PREFERRED INTERNATIONAL BUSINESS AND FINANCIAL CENTRE IN ASIA PACIFIC
Thank You!