Offshore Market

Offshore Market

Characteristics
1. Tax regime
  1. Favourable (low tax with maximum of RM20,000 / $5,000) No income tax, no stamp duties, no withholding tax, no dividend tax, no service charges, etc)
2. Government control
  1. Little or no intervention (no FOREX control)
3. Regulation
  1. Regulated by Labuan Financial Services Authority (Labuan FSA) – globally recognized regulatory structure)
4. Location
  1. Labuan (independent state with its own laws) At national boundaries At sea – some distance from the shores
5. Participants
  1. Malaysians Foreigners, investors Multinational companies
Offshore Company
1. Offshore Trading company
  1. Generates profits by buying and selling products or services to customers in international markets
  2. Dealing in banking, insurance, trading, management, licensing and any activity which is not an offshore non-trading activity
2. Offshore non-trading company
  1. Activity is related to the holding of investments in securities, stocks, shares, loans, deposits and immovable properties on its own behalf.
Labuan Financial Services Authority (Labuan FSA)
1. Established in 1996 Purpose: develop & administer Labuan International Business and Financial Centre (Labuan IFC)
2. Roles and functions
  1. To develop national objectives, polices and priorities
  2. To focus on the development and promotion
  3. To supervise the business and financial activities and operations
  4. To administer and enforce the financial services legislations
Labuan International Business and Financial Center (Labuan IBFC)
1. Provide large spectrum of financial services and products for corporations and individuals (Islamic & conventional)
2. Key areas
  1. Highly flexible tax framework
  2. Progressive legislative environment
  3. Competitive operating costs
  4. Focused marketing efforts
  5. Strategic location
  6. Increasing holding companies establishment
  7. Leading the captive insurance business
  8. Active participants in Islamic finance
  9. Enhanced customer service
Tax Structure
1. Offshore Trading Activity
  1. 3 % of net profit per audited account or RM 20,000
2. Offshore Non-trading Activity:
  1. Not subject to tax
3. Both offshore trading and non-trading activity
  1. 3 % of net profit per audited account or RM 20,000
Labuan Business Activities
1. Banking
  1. Savings account = min $5,000 Current account Can withdraw using $, Sterling and Euro
2. Insurance & Takaful
  1. For risk solution related to import export transactions, FOREX, etc
3. Leasing
  1. Due to high demand for capital equipment especially in aviation, shipping, o&g industries.
4. Factoring
  1. Business of acquiring debts to any person / institution at a discount (as approved by Labuan FSA)
5. Money Broking
  1. Arrange transactions between buyers and sellers in MM
6. Commodity Trading
  1. Trade physical and related derivative instruments in any currencies other than MYR. The commodities include petroleum, refined raw materials, chemicals, agriculture products, etc.
7. Credit Token Business
  1. A business where a token (cheque, card, voucher, stamp, booklet, coupon, form, etc) is given to a person by the person carrying on the business.
8. Company Management Business
  1. Provide treasury processing services (processing & confirming deals, preparing accounting records, maintaining files, etc) & Islamic advisory services (consultancy, development of Islamic trusts, etc)

Siguiente

Descripción

Resumen del Recurso

Similar

	Creado por Nur Aliah Rapaie hace más de 4 años