2000 BUDGET ISSUE


 
LABUAN
 

1. Labuan Offshore Limited Partnership Regulations 1999

The Labuan Offshore Limited Partnership Regulations 1999 specified the type of forms to be used and the manner in which these forms are to be filled with the Labuan Offshore Financial Services Authority (LOFSA) for the purposes of the Labuan Offshore Limited Partnership Act 1997.

The Regulations also specified the fees to be paid on lodgement of documents with LOFSA. The fees payable to LOFSA are as follows:-

 

RM

Registration fee

1,000

Certificate of registration

50

Fee for renewal of registration

50

Fee for filing notice of changes to partnership agreement

50

Fee for filing notice of change of the address of the registered office

50

Fee for filing an application to register an assignment

50

Fee for filing notice of dissolution

50

Fee for filing an appliation to restore the name of the partnership which has been struck off

100

Annual fee to be paid by the offshore limited partnership

1,000


2. Labuan Offshore Securities Industry Regulations 1999

The Labuan Offshore Securities Industry Regulations 1999 specified the type of forms to be used and the manner in which these forms are to be filed in respect of any application or matter under the Labuan Offshore Securities Industry Act 1998 and the fees to be paid in respect of lodgement of documents with LOFSA.

The following are the fees payable to LOFSA:-

 

RM

Fee for granting consent

1,000

Registration fee for public fund

2,000

Fee for processing application as a manager of a public fund

100

Fee for processing application as an administrator

100

Fee for filing certificate of compliance

100

Fee for filing notice of change for information under subsection 21(2)

100

Fee for exercising power under section 53

100

Annual fee for :-
  • private fund

1,000

  • public fund

2,000

  • manager of a public fund

10,000 (outside Labuan)

 

5,000 (in Labuan)

  • administrator

5,000 (outside Labuan)

 

2,000 (in Labuan)

3. Tax Incentives and Other Measures - Labuan

The Governor of Bank Negara Malaysia who is also the Chairman of LOFSA had announced on 6th October, 1999 that the following tax incentives will be gazetted soon :-

  1. The current tax exemption of 65% of the statutory income of a person from a source consisting of the rendering of legal, accounting, financial or secretarial services, including that of a trust company as defined in the Labuan Trust Companies Act, 1990 will be extended for another 5 years from the years of assessment 2000 (current year basis) to 2004.
  2. The present 50% tax rebate given against the gross income of a non-Malaysian citizen from an employment exercised in Labuan in a managerial capacity with an offshore company will be extended for another 5 years from the years of assessment 2000 (current year basis) to 2004.
  3. 50% of the housing and regional allowances given to residents working in the public sector and offshore companies in Labuan will be exempted from tax for the years of assessment 1998 to 2001.
  4. The second tier dividends declared out of dividends received from an offshore company by a domestic company will be exempted from tax.
  5. 50% of the income of a non-resident manager working for a Labuan trust company will be exempted from tax for the years of assessment 1998 to 2001.
  6. Stamp duty for the transfer of shares and preparation and filing of Memorandum and Articles of Association by an offshore company will be waived.

Other incentives / measures introduced include:-

  1. To give offshore banks limited access to the ringgit loan market which would provide companies with an additional avenue of refinancing and provide some business opportunities to offshore banks.
  2. The authorities will lift the restriction on eligibility of participation by offshore banks at Labuan, previously limited to just the top 200 banks in the world
  3. To launch a virtual global exchange known as the Labuan International Financial Exchange which will provide listing and trading facilities for financial and non-financial products including mutual funds, bonds, derivatives, insurance linked products and possibly intellectual properties.
  4. To develop a global network of Islamic money markets to cater to the needs of financial institutions worldwide seeking global financing.
  5. To invest in a gateway in the World Wide Web in which players will be connected with nodes provided to facilitate innovations and interfacing with customers by offshore players.




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