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LABUAN
1.
Amendments to the Offshore Insurance Act, 1990 ("OIA")
The above amendments introduced 2
paragraphs into subsection 7(1) of the OIA to require an applicant for a licence
to carry on business of offshore insurance manager, offshore underwriting manager
or offshore insurance broker to establish a management office in Labuan. However,
an applicant for a licence to carry on business as an offshore insurance broker,
has an option to appoint a licensed offshore insurance manager instead of establishing
a management office in Labuan.
In addition, Section 15 of the OIA is amended to enable the annual licence fees to
be prescribed by regulations made under Section 32 of OIA. The amendment allows greater
flexibility in the procedure for the imposition of such fees. In view of the new
procedure, the Second Schedule of this Act which set out the annual licence fees
is deleted.
The above amendments came into force on 15th August, 2001.
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2.
Amendments to the Offshore Companies Act, 1990 ("OCA") - Offshore
Companies (Amendment) Regulations 2001
The OCA was amended to allow for
electronic lodgement of documents (Sections 9A, 9B and 9C have been introduced to
the OCA). In line with the introduction of electronic lodgement of documents, the
regulations in the OCA are amended to conform with the electronic lodgement legislation.
The Consent to Act as Director Form (Form 21) has been amended imposing a heavier
burden on the resident secretary of the offshore company. The resident secretary
is now required to certify that the person signing the form is the proposed director
of the offshore company.
The annual return filing fee of RM100 by an offshore company has been waived.
Auditors as approved by the Labuan
Offshore Financial Services Authority ("LOFSA") are now required to pay
an annual fee of RM1,000 compared to RM200 previously.
The gazette in respect of the above was published on 28th June, 2001.
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3.
Amendment to the Offshore Banking Act, 1990 - Offshore Banking (Annual
Licence Fees) (Amendment) Regulations 2001
Offshore banks are now required to
pay an annual fee of RM80,000 to LOFSA compared to RM60,000 previously.
The above amendment came into operation on 3rd May, 2001.
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4.
Amendments to the Labuan Trust Companies Act, 1990 - Labuan Trust
Companies (Amendment) Regulations 2001
Trust companies incorporated in Malaysia
are now required to pay an annual fee of RM8,000 to LOFSA compared to RM200 previously.
Trust companies incorporated outside Malaysia are now required to pay an annual fee
of RM8,000 to LOFSA compared to RM350 previously.
The above amendments came into operation on 3rd May, 2001.
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5.
Extension of Income Tax Exemption Period
The Minister of Finance has approved
the extension of the exemption period of the following incentives :-
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50% exemption of housing and Labuan
Territory allowances received by citizens from exercising an employment in Labuan
with the government, a statutory body or an offshore company. |
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50% exemption of the gross income
of a non-citizen individual from an employment with a Labuan trust company in a managerial
capacity. |
The above incentives which were given originally for the years of assessment 1998
to 2001 (both years inclusive) have now been extended up to the year of assessment
2005. The extension has yet to be gazetted as law.
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6.
Guidelines for Carrying On Offshore Leasing Business in Labuan
LOFSA has issued guidelines for carrying
on offshore leasing business in Labuan on 19th March, 2001.
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The Guidelines
Offshore leasing means the business of letting or sub-letting movable property
on hire for the purpose of the use of such property by the hirer, regardless whether
the letting is with or without an option to purchase the property or such other business
as approved by the Minister of Finance.
The following are eligible to apply to conduct offshore leasing in Labuan :-
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Offshore company incorporated or
registered under the OCA; |
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Special Purpose Vehicles set up to
facilitate leasing transactions, including intercompany transactions. |
Amongst others, the applicant company is required to comply with the following operational
requirements :-
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ensure all transactions are done
through Labuan and adequate and proper records and books of accounts are maintained
in Labuan |
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maintain capital sufficient to support
the company's operations; |
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transact business only in foreign
currency and not deal in Malaysian Ringgit except for the purpose of defraying administrative
and statutory expenses; |
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submit to LOFSA within three (3)
months after the close of each financial year a copy of its audited annual balance
sheet and profit and loss account; |
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notify LOFSA of any changes to its
constituent documents, shareholdings, management or business plans; and |
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comply with any other requirements
issued by LOFSA from time to time. |
An annual licence fee of RM40,000 is payable by leasing companies established to
conduct leasing transactions with Malaysian residents plus a fee of RM20,000 payable
for each subsequent transaction. The transaction fee is not applicable to subsequent
transactions conducted with non-residents. For leasing companies which only conduct
out-out business, no licence fee is imposed.
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