fund management vehicles definitely facilitate wealth management needs . Underpinning these innovative structures are Labuan IBFC ’ s comprehensive infrastructure with dedicated legislations , Shariah governance and fiscal incentives for Shariah-compliant financial transactions providing a facilitative and flexible framework for industry players .
In Labuan IBFC , Shariah compliance is endorsed by the Labuan Financial Services Authority ’ s Shariah Supervisory Council ( SSC ) comprising leading global Shariah scholars and practitioners . This is a key point as unlike similar bodies in other jurisdictions , Labuan IBFC ’ s SSC takes on a supervisory role , not merely advisory , and hence SSC rulings are able to be used as reference in the court of law .
d . FUND MANAGEMENT
The private funds sector has been liberalised and these funds need no longer register with Labuan FSA ; instead , notification of the fund is sufficient . Protected cell companies can also operate as a vehicle for investment funds . As each cell ’ s assets and liabilities are segregated from other cells and “ ring-fenced ”, each cell may represent different groups of investments for which distinct classes or series of shares may be offered to the fund ’ s investors .
e . PRIVATE WEALTH MANAGEMENT
With the availability of an array of trusts and foundations , Labuan IBFC offers flexibility in structuring wealth management vehicles that suit both the common and civil law jurisdictions within Asia and beyond . In addition , the availability of private trust companies will appeal to individuals and families who wish to retain control of the management of their assets and businesses , including awarding them the flexibility to be involved in the day-to-day administration of those assets .
These wealth management vehicles can be considered along with the Labuan Trusts Act 1996 which provides for a variety of trusts , ranging from purpose to charitable trusts . A notable feature of the Act is the provision of the Labuan special trust , which can be used to hold shares in a
Labuan holding company that may in turn own assets including cash , real estate , art , securities , businesses and insurance policies .
Malaysian and non-Malaysian residents who own international as well as Malaysian properties may inject them into a trust or a foundation . However , where Malaysian properties are involved , prior approval from Labuan FSA is required . In addition , income from Malaysian properties is subject to tax under the ITA , whilst income from non-Malaysian properties is taxed under LBATA . There is no estate or inheritance tax in Labuan IBFC .
f . GLOBAL INCENTIVES FOR TRADING
The Global Incentives For Trading ( GIFT ) is housed in Malaysia via a Labuan International Trading Company ( LITC ), which is then licensed to benefit from preferential allowances under this programme . The types of commodities that are eligible under the GIFT programme are petroleum and petroleum-related products including liquefied natural gas ( LNG ). Under this programme , an LITC must be established and licensed by Labuan FSA . An LITC is allowed to establish its operational office ( s ) anywhere in Malaysia . LITCs enjoy a corporate tax rate of 3 % on chargeable profits as reflected in the audited accounts under LBATA as per the relevant exemption order .
Disclaimer This document provides general information on Labuan IBFC and should not be relied upon when formulating business decisions , nor should it be treated as a substitute for professional advice pertaining to particular business circumstances . While all information herein has been prepared in good faith , no representation or warranty , expressed or implied , is made and no responsibility or liability will be accepted by Labuan IBFC Incorporated Sdn Bhd or Labuan Financial Services Authority as to the accuracy or completeness of this document . Further , this document does not include any statement or opinion with regard to the laws governing Labuan IBFC or Malaysia and specific legal advice should always be sought from qualified lawyers and / or professional advisors . In addition , this document is not directed to any person in any jurisdiction where ( by reason of that person ’ s nationality , residence or otherwise ) this publication or availability of any services offered within it , is prohibited and deemed unlawful . Please note that information contained herein is subject to change without prior notice .
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