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LABUAN – A HIDDEN GEM

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. WHAT LABUAN HAS TO OFFER?.

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LABUAN – A HIDDEN GEM

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  1. 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

  2. Labuan is a beautiful island in Sabah, Malaysia

  3. WHAT LABUAN HAS TO OFFER? STRATEGIC LOCATION BUSINESS FRIENDLY LEGISLATION MODERN AND FLEXIBLE PRODUCTS TAX EFFICIENCY

  4. LABUAN IS THE GATEWAY TO ASIA - WELL CONNECTED TO ALL ASIAN MARKETS Growth of Labuan Companies Labuan is an island located in East Malaysia 8KM off the coast of Sabah Similar time zone Similar culture Close proximity

  5. BUSINESS FRIENDLY LEGISLATION New Acts Amended Acts Labuan Financial Services And Securities Act 2010 Labuan Business Activity Tax (Amendment) Act 1990 Labuan Islamic Financial Services And Securities Act 2010 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

  6. SOME SALIENT POINTS OF LABUAN’S 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

  7. Modern and Flexible Products

  8. Many Wealth Management Products To Choose From Charitable Trusts Protected Cell Company Labuan Company/ SPV Purpose Trusts Mutual Funds Banking License Spendthrift Trusts Fund Management License Insurance/ Re-insurance License Special Trusts Fund Administration License Labuan Foreign Exchange (LFX) Private Trust Company Securities License Trust Company/ Managed Trust Co ISLAMIC Foundation

  9. Trusts and Foundations

  10. 5 KEY ADVANTAGES OF LABUAN’S 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

  11. MUTUAL FUNDS AND FUND MANAGEMENT

  12. 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.

  13. 5 KEY ADVANTAGES OF LABUAN’S 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. Public Fund SUPPORT MULTICLASS –multi currency/ asset class/ fee and so on. 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

  14. PRIVATE FUND – HASSLE FREE Private Islamic/ Conventional Mutual Fund Only required notification to the Authority by submitting the information memorandum Not required to be licensed as fund manager in Labuan Equity/ Bond Fund Private Mandate A private fund can be managed by fund manager outside Labuan/ Malaysia Private Equity No restriction on investment limit and exposure REIT/ property Fund Special Interest Fund No minimum capital requirement to set-up fund management company for private fund Hedge/ Structured

  15. FUND MANAGEMENT & ADMINISTRATION LICENSES Fund Management License (for public fund ) Allowed to offer: Fund management services • Requirements: • Individual or corporation licensed to carry on fund management services by a recognised jurisdiction. • A minimum paid-up capital of equivalent to RM300K (US$100K). • Fit and proper criteria for CEO. • Adequate resources. • Office address in Labuan. Fund manufacturing services Fund administration services Investment advisory services

  16. Simple and Straight Forward

  17. LABUAN’S 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 non-trading income - 0% Tax p.a. Labuan Entity

  18. Other Benefits..

  19. OTHER KEY BENEFITS Snapshot Of Islamic Finance Industry In Labuan IBFC 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 No exchange / capital controls, stamp duty, capital gains & withholding tax • Access To Asia Pacific’s Largest Double Taxation Agreement network (62) 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 . Consolidation of Islamic laws under one act.

  20. LABUAN IBFC TODAY AND THE FUTURE Snapshot Of Islamic Finance Industry In Labuan IBFC • Co-location - Today: • Labuan holding companies and banks are permitted to set up full operational and marketing offices in Kuala Lumpur LABUAN HOLDCO

  21. LABUAN IS INDEED A GEM! 1. Strategically Connected 2. Business Friendly Legislation 3. Modern and Flexible Products 4. Tax Efficiency

  22. 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

  23. 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.

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