Labuan: Asia’s Hidden Gem For International Business
Unlocking Labuan’s Potential: A Financial Powerhouse
Labuan, malaysia has achieved significant success as an international business hub since its establishment in 1990. A tax-efficient regime, regulatory autonomy, and a commitment to embracing innovative technologies Make labuan a distinguished international business financial centre.
Location
Strategically located in Asia and proximity to time zones of Asia such as Hong Kong, China, Japan, Korea, India. Being part of ASEAN, which has a combined population of more than 600 million people, make us the world’s third largest market.
Favourable Tax Regime
Labuan offers a competitive edge with a corporate tax rate of 3% on audited net profits. Additionally, Labuan companies engaged in non-trading activities enjoy non-taxability benefits, along with no withholding tax, inheritance tax, or stamp duty on offshore transactions.
Regulatory Autonomy
Labuan’s regulatory independence through the Labuan Financial Services Authority (LFSA) separates it from Malaysia’s mainland regulatory body, Companies Commission of Malaysia. This autonomy provides Labuan regulatory with the freedom to regulate corporations and financial activities, making it an attractive jurisdiction for global businesses.
Islamic Financial Hub
With a complete suite of Islamic financial structures and solutions, effective regulatory standards, a facilitative business environment as well as a Shariah Supervisory Council (SSC), Labuan Labuan International Business and Financial Centre (IBFC) is well-positioned to cater to the needs of the global Islamic industry.
Embracing Digitalization
Labuan has positioned itself at the forefront of the digital era by implementing guidelines for the Digital Governance Framework. As of 2023, Labuan boasts 61 license holders for digital financial services, anticipating ongoing expansion and solidifying its status as a hub for digital business growth in Asia.
During the year, 29 approvals were granted to conduct DFS business. Majority were approved to operate digital banking business (4), exchange (3), digital currency trading platform (11), credit token business (5) and e-payment systems (6).
SOURCE: MARKET REPORT 2022, LABUAN INTERNATIONAL BUSINESS AND FINANCIAL CENTRE
Disclaimer:
This material is for informational purposes only and does not constitute legal, financial, or professional advice. Readers should seek the advice of professionals before taking any action to ensure that your specific circumstances are appropriately considered.
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