A stock exchange was established in 2000, aiming particularly at the listing of Islamic financial debt issues, and has had considerable successes.
Malaysian taxes are moderately high, although on a territorial basis, but Labuan offshore companies engaged in trade pay 3% tax or can elect to pay a fix sum of RM20,000 (approx. US$6,500); all other offshore companies are exempt. There are many incentives and exemptions which make it possible for most mainland Malaysian profits to be repatriated through Labuan without tax. Many expatriate workers can take advantage of personal tax incentives.
LOFSA is determined that Labuan should become a successful e-commerce hub, and has built e-commerce infrastructure which can be used by incoming e-commerce operations, as well as by the island's new financial markets.
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COUNTRY:
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LABUAN
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Region:
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Asia-Pacific
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Currency:
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US dollar (USD) (US$), Malaysian Ringgit (MYR) (RM)
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Languages:
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English, Malay, Chinese, Tamil
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Time Zone:
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UTC +8
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Phone Code:
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+608
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Communications:
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Very Good
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Formation Cost:
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3200 - 4600 USD$
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Formation Time:
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1 - 2 days
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Maintenance cost:
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2200 - 2800 USD$
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Suitable for:
- Wealth Management,
- Wealth Management,
- Banking, Insurance,
- Fund Management,
- Shipping,
- Aviation,
- Trading Goods,
- Trading Financial,
- Intellectual Property/Licensing,
- Holding Companies
Vehicle Types:
- Limited companies,
- public limited companies,
- branches,
- trusts,
- foundations,
- general partnerships,
- limited partnerships and protected cell companies
Capital primary business districts:
Labuan Town, Kuala Lumpur
Good Relationships:
China, India, Indonesia, Japan, Malaysia, Singapore, United States
Bad Relationships:
Cuba, Iran, Korea (Democratic People's Republic of), Libya, Somalia
Tax Burden - Business:
Very Light
Tax Burden - Individual:
Light
Headline tax rates:
CIT 25% (offshore trading company 3%; non-trading 0%), PIT 26%, VAT 0%
Treaty Jurisdictions:
Albania, Australia, Austria, Bahrain, Bangladesh, Belgium, Brunei, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Fiji, Finland, France, Hong Kong, Hungary, India, Iran, Ireland, Italy, Jordan, Kazakhstan, Korea, Republic of, Kuwait, Kyrgyzstan, Laos, Lebanon, Malta, Mauritius, Mongolia, Morocco, Myanmar, Namibia, New Zealand, Norway, Pakistan, Papua New Guinea, Philippines, Poland, Qatar, Romania, Russia, San Marino, Saudi Arabia, Singapore, Sri Lanka, Sudan, Switzerland, Syria, Taiwan, Thailand, Turkey, Turkmenistan, United Arab Emirates, Uzbekistan, Venezuela, Vietnam, Zimbabwe
TIEA Jurisdictions:
Bermuda
