LABUAN JURISDICTION AND FUND MANAGEMENT

1. LABUAN JURISDICTION AND FUND MANAGEMENT Whenever we talk about the situation global market is in, we consider all the situations that favor our analogy. Be it investment banking services, fund manager licensing, or even the commercial banking services for that matter; we set the required parameters that makes up an ideal foreign market to perform such business. Every foreign market that wants to be the host to international business is required to be optimal for every industry that wants to enter. When every player in the world economy finds one common ground to fulfil every need in terms of business, that market automatically becomes the hotbed for offshore business operations. And such a common ground is Labuan. You can either give credit to its flexible framework with adequate technicalities or to the stable jurisdiction it has, but one thing you simply can’t do, is to ignore the fact that in the past few years Labuan has proved to be the influential market it is.

2. And to continue on that note, Labuan jurisdiction not only fits into the set parameters but also has set new benchmark for other players in terms of offshore services provided to the businesses. If we put a finger on the facts to support the ongoing analogy, we might our answers in its vast array of services it provides. Talking about the services or advantages Labuan jurisdiction provides in the sphere of funder management, we can see that like everywhere else, obtaining a Fund Manager License is a prerequisite that is to be followed. And only after obtaining a license can an organization consider itself in the run to enter the Malaysian market under Labuan jurisdiction. But once that prerequisite is met, there are numerous benefits provided by the jurisdiction which include famous ones like ability to deal with as much as 70 of the Malaysian Tax Treaty partners. BENEFITS OF HAVING A LABUAN FUND MANAGER LICENSE We can go on and on if we simply start blabbing the benefits of having a Labuan fund manager license.

3. On that note, we should focus on these benefits and their role in the betterment of Fund Management Offshore. Let’s take a quick look at some of these benefits and see how skilfully it benefits all the organizations in the offshore market. 1.No Withholding Tax: Withholding Tax in Labuan jurisdiction is a prominent example to support the fact that it promotes new businesses as much as the next suitable jurisdiction. But keeping the competition behind for once, and thinking logically, we should fathom the idea of the bigger picture, that is, international business and the need for a significant boom in the economy. Considering the current pandemic, we get a rough idea about the importance of international business. Because every organization in the world right now is thinking of tapping into the global market directly. Which is an obvious outcome of the desperation nation is facing right now. Therefore, we should appreciate such a jurisdiction that allows all the organizations from all the industries to come forward and take part into international business operations and help them to grow in a sustainable work environment. 2.Not tax on profits distributed to shareholders via dividend: Another benefit, Labuan fund manager license holding professionals get under the Labuan jurisdiction, is that they have a tax relief on the profits that is distributed to the shareholder via dividends. This promotes the fund manager to operate with great efficiency in the Malaysian market and contribute towards the collective mission of promoting offshore business around the places where it is still not very much popular.

4. 3.No loss on the loss incurred: When we talk about the taxation process under Labuan jurisdiction, we have already mentioned about Withholding Tax In Labuan as well as the tax exemption on the shared profits but one aspect that remained overlooked until now, is the aspect that showcases that not even a single penny is levied as tax charge on any loss incurred by any fund manager in Labuan. 4.Exposure to a vast market of Malaysian tax treaty partners: Any international organization that plans to enter a foreign market, has one common goal, which is to grow in the market up to a level where it has a stern brand image in them market. And that what Labuan jurisdiction focuses on. A Labuan fund manager license makes the holder entitled to deal with almost all the Malaysian Tax Treaty Partners which eventually makes the professional popular among the global market. On a concluding note, when we see that a business like fund management is given so much importance in a foreign market, it should get all the popularity it deserves. Labuan jurisdiction is not all about the benefits it provides. It also comprise of mighty firms that make each offshore business operation possible. Speaking of such players, if you have any issue regarding anything in this discussion or if you want to enter the offshore market, you can always choose QX Trust. It’s not only a celebrated name in the market but also the most professional firm in this respect too. Call us at +60 3 9212 6940 or reach out to us at consultant@qx- trust.com for a consultation appointment in this or any other respect.