As you might be aware, it was announced via the Malaysian Budget 2019 that as of 1st January, the current tax rate of 3% for all trading activities prescribed by the Labuan Business Activity Tax Act 1990 will be retained as will the tax neutrality of all investment holding entities in the jurisdiction. The option of paying a flat fixed amount of MYR20,000.00 in tax will, however, no longer be available in 2019, ensuring the jurisdiction remains in compliance with international fiscal standards.
Clearly, Labuan FSA has strategically designed the jurisdiction to meet the requirements of a "future proofed" international financial centre, where cost-efficiency and innovation are married with transparency, economic substance as well as stringent money laundering and terrorism financing provisions.
This is the core message the team and I want to share when we describe Labuan IBFC's true value proposition ensuring users, advisors and intermediaries fully understand Labuan IBFC's unique position as Asia's midshore international business and financial centre.
Until the next edition, take care and please do not hesitate to get in touch for any further information.
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