LABUAN A HIDDEN GEM

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

Labuan is a beautiful island in Sabah, Malaysia

STRATEGIC LOCATION

BUSINESS FRIENDLY LEGISLATION

MODERN AND FLEXIBLE PRODUCTS

TAX EFFICIENCY

LABUAN IS THE GATEWAY TO ASIA - WELL CONNECTED TO ALL Growth of Labuan Companies ASIAN MARKETS

Labuan is an island located in East Malaysia 8KM off the coast of Sabah

Similar time zone

Similar culture
Close proximity
4

BUSINESS FRIENDLY LEGISLATION

New Acts
Labuan Financial Services And Securities Act 2010 Labuan Islamic Financial Services And Securities Act 2010

Amended Acts
Labuan Business Activity Tax (Amendment) Act 1990 Labuan Financial Services Authority (Amendment) Act 1996

Labuan Foundations Act 2010

Labuan Trusts (Amendment) Act 1990

Labuan Limited Partnerships And Limited Liability Partnerships Act 2010

Labuan Companies (Amendment) Act 1990

SOME SALIENT POINTS OF LABUANS ACTS Growth of Labuan Companies

All in one financial services act

Introduction of Labuan Foundations Act

Malaysians can use Labuan

First all in one Islamic financial services act

Labuan company can own controlling stake in domestic company

Modern and Flexible Products

Many Wealth Management Products To Choose From

Charitable Trusts Protected Cell Company Purpose Trusts Mutual Funds Spendthrift Trusts Special Trusts Banking License Labuan Company/ SPV

Fund Management License

Fund Administration License Securities License

Insurance/ Reinsurance License

Labuan Foreign Exchange (LFX) Trust Company/ Managed Trust Co

Private Trust Company

Foundation

ISLAMIC

Trusts and Foundations

5 KEY ADVANTAGES OF LABUANS TRUSTS & FOUNDATIONS

Protected from foreign claims and cannot be forcefully liquidated. A trust and foundation can be in perpetuity

Modern instruments such as Special Trust and Foundation allowed settlor/ founder to retain control

Clear definition and prescription for the setting-up of different types of trust and foundation provided by laws
Enable the creation and recognition of Islamic trusts and foundation

MUTUAL FUNDS AND FUND MANAGEMENT

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 equivalent Or 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.

5 KEY ADVANTAGES OF LABUANS MUTUAL FUNDS

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. SUPPORT MULTICLASS multi currency/ asset class/ fee and so on.

Public Fund

NO CAPITAL OR FOREIGN EXCHANGE CONTROL NO STAMP DUTY

IN ADDITION..
Private Fund

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

PRIVATE FUND HASSLE FREE

Private Islamic/ Conventional Mutual Fund
Equity/ Bond Fund Private Mandate

Only required notification to the Authority by submitting the information memorandum

Not required to be licensed as fund manager in Labuan

Private Equity
REIT/ property Fund Special Interest Fund Hedge/ Structured

A private fund can be managed by fund manager outside Labuan/ Malaysia No restriction on investment limit and exposure

No minimum capital requirement to set-up fund management company for private fund

FUND MANAGEMENT & ADMINISTRATION LICENSES

Allowed to offer:

Fund Management License (for public fund )

Requirements:

Fund management services

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.

Fund manufacturing services

Fund administration services

Investment advisory services

Simple and Straight Forward

LABUANS SIMPLE TAX STRUCTURE

Beneficiary/ Investor

0% tax on capital/income/ dividends distribution

No witholding tax

Labuan trading income: 3% Tax or RM20,000 p.a. (can elect on yearly basis) Labuan Entity

Labuan non-trading income 0% Tax p.a.

Other Benefits..

OTHER KEY BENEFITS Snapshot Of Islamic Finance Industry In Labuan IBFC

No Access exchange / capital controls, stamp duty, capital To Asia Pacifics Largest Double Taxation gains & withholding tax Agreement network (62)

No exchange controls, stamp duty or indirect tax, no capital gain tax, no inheritance tax

No tax on foreign director fee 50% tax exemption on foreign staff in managerial position

Advance Tax Ruling. Provides certainty and clarity.

An application can be made to the income tax authority to obtain a written statement setting out Consolidation of Islamic laws or the tax structure applicable to a transaction under one act. business .

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

Co-location - Today:

Labuan holding companies and banks are permitted to set up full operational and marketing offices in Kuala Lumpur

1. 2. 3. 4.

Strategically Connected Business Friendly Legislation Modern and Flexible Products Tax Efficiency

THANK YOU
LABUAN INTERNATIONAL BUSINESS & FINANCIAL CENTRE INCORPORATED 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 FINANCIAL CENTRE IN ASIA PACIFIC

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.