Labuan: Offshore Business Sectors
Investment Fund Management
Under the Labuan Financial Services and Securities Act 2010 (which repealed and replaced the Labuan Offshore Securities Industry Act 1998) the paid-up capital of a fund management company must be at least RM300,000 or its equivalent.
An applicant should meet the following minimum eligibility criteria:
- A licensed fund management company from a recognised jurisdiction; or
- A Labuan company set-up by individual fund managers who are licensed by the relevant home supervisory authority.
Annual fees for a fund management company are RM5,000 for a company with place of business in Labuan and RM10,000 for a company without a place of business in Labuan.
Presently, approved instruments of Islamic financing are given additional stamp duty exemption of 20%. That exemption was to expire on December 31, 2009, but was extended to December 31, 2015 as a result of the 2009 government budget.
The 2009 budget also extended and expanded tax incentives for the issuance of Islamic securities. Expenses incurred in such issuance approved by the Securities Commission are currently allowed as a deduction for income tax purposes.
Investment Management companies in Labuan, like all offshore companies, have access to Malaysia's range of double tax treaties; for details of their tax treatment generally, see Offshore Legal and Tax Regimes.