EC Trust (Labuan) Bhd

Labuan

Combined with a flexible and favorable tax treatment and low cost of setting up and operating in Labuan IBFC, this framework has succeeded in attracting substantial numbers of international businesses to domicile in Labuan, including 60 world leading banks, 134 insurance and insurance-related companies, and 23 trust companies.

Benefits of Labuan Company

No Exchange Control Regulations - Labuan entities are declared as Non Residents for foreign exchange control purposes.
Attractive Tax Regime
- Trading activities – Maximum tax of RM 20,000 (est, US$ 6,500)
- Non trading activities - No tax - Eg, includes investment holdings funds investment, securities etc
Tax exemptions for dividends paid to shareholders of a Labuan company
Tax exemptions on Directors Remuneration for non Malaysian citizen directors
Non – Malaysian employees of Labuan companies are taxed on their gross employment income at only half the normal income tax rate
Migration of Domicile Permitted
Labuan, being part of Malaysia, has access to 70 Double Tax Agreements (DTA) entered into by Malaysia.

Double Tax Agreement (DTA)

As at 1 November 2010, the status of Malaysian DTAs are as follow:

Malaysia Double Tax Agreements | DTA Table

+ Effective DTA's: - Effective DTA's:
1. Albania	19. Germany	37. Myanmar	55. Sudan
2. Argentina	20. Hungary	38. Namibia	56. Syria
3. Australia	21. India	39. Netherlands	57. Sweden
4. Austria	22. Indonesia	40. New Zealand	58. Switzerland
5. Bahrain	23. Iran	41. Norway	59. Thailand
6. Bangladesh	24. Ireland	42. Pakistan	60. Turkey
7. Belgium	25. Italy	43. Papua New Guinea	61. Turkmenistan
8. Bosnia & Herzegovina	26. Japan	44. Philippines	62. United Arab Emirates
9. Canada	27. Jordan	45. Poland	63. United Kingdom
10. Chile	28. Kazakhstan	46. Qatar	64. Unites States of America
11. China	29. Kyrgyz	47. Romania	65. Uzbekistan
12. Croatia	30. Kuwait	48. Russia	66. Venezuela
13. Czech Republic	31. Lebanon	49. Saudi Arabia	67. Vietnam
14. Denmark	32. Luxembourg	50. Seychelles	68. Zimbabwe
15. Egypt	33. Malta	51. South Africa
16. Fiji	34. Mauritius	52. South Korea
17. Finland	35. Mongolia	53. Spain
18. France	36. Morocco	54. Sri Lanka

Double Taxation Agreements Withholding Tax Rates

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+ Effective Double Taxation Agreements: - Effective Double Taxation Agreements:
No.	Country	Dividends (%)	Interest (%)	Royalties (%)	Fees for Technical Services (%)
1	Albania	NIL	10	10	10
2	Australia	NIL	15	10	NIL
3	Austria	NIL	15	10	10
4	Bahrain	NIL	5	8	10
5	Bangladesh	NIL	15	10	10
6	Belgium	NIL	10	10	10
7	Brunei	NIL	10	10	10
8	Canada	NIL	15	10	10
9	Chile	NIL	15	10	5
10	China	NIL	10	10	10
11	Croatia	NIL	10	10	10
12	Czech Republic	NIL	12	10	10
13	Denmark	NIL	15	10	10
14	Egypt	NIL	15	10	10
15	Fiji	NIL	15	10	10
16	Finland	NIL	15	10	10
17	France	NIL	15	10	10
18	Germany	NIL	15	10	NIL
19	Hungary	NIL	15	10	10
20	India	NIL	10	10	10
21	Indonesia	NIL	15	10	10
22	Iran	NIL	15	10	10
23	Ireland	NIL	10	8	10
24	Italy	NIL	15	10	10
25	Japan	NIL	10	10	10
26	Jordan	NIL	15	10	10
27	Kazakhstan	NIL	10	10	10
28	Kyrgyz Republic	NIL	10	10	10
29	Kuwait	NIL	10	10	10
30	Lebanon	NIL	10	8	10
31	Luxembourg	NIL	10	8	8
32	Malta	NIL	15	10	10
33	Mauritius	NIL	15	10	10
34	Mongolia	NIL	10	10	10
35	Morocco	NIL	10	10	10
36	Myanmar	NIL	10	10	10
37	Namibia	NIL	10	5	5
38	Netherlands	NIL	10	8	8
39	New Zealand	NIL	15	10	10
40	Norway	NIL	15	10	10
41	Pakistan	NIL	15	10	10
42	Papua New Guinea	NIL	15	10	10
43	Philippines	NIL	15	10	10
44	Poland	NIL	15	10	10
45	Qatar	NIL	5	8	8
46	Romania	NIL	15	10	10
47	Russia	NIL	15	10	10
48	Saudi Arabia	NIL	5	8	8
49	Seychelles	NIL	10	10	10
50	Singapore	NIL	10	8	5
51	South Africa	NIL	10	5	5
52	South Korea	NIL	15	10	10
53	Spain	NIL	10	7	5
54	Sri Lanka	NIL	10	10	10
55	Sudan	NIL	10	10	10
56	Sweden	NIL	10	8	8
57	Syria	NIL	10	10	10
58	Switzerland	NIL	10	10	10
59	Thailand	NIL	15	10	10
60	Turkey	NIL	15	10	10
61	Turkmenistan	NIL	10	10	10
62	United Arab Emirates	NIL	5	10	10
63	United Kingdom	NIL	10	8	8
64	Uzbekistan	NIL	10	10	10
65	Venezuela	NIL	15	10	10
66	Vietnam	NIL	10	10	10
(i) There is no withholding tax on dividends paid by Malaysia companies.
(ii) To claim the DTA rate, please attach the Certificate of Tax Residence from the country of residence.
(iii) Where the rate provided in the ITA 1967 is lower than the DTA rate, the lower rate shall apply.

+ Gazette Double Taxation Agreements: - Gazette Double Taxation Agreements:
No.	Country	Dividends (%)	Interest (%)	Royalties (%)	Fees for Technical Services (%)
1	Bosnia and Herzegovina	NIL	10	8	10
2	Senegal	NIL	10	10	10
3	Zimbabwe	NIL	10	10	10

+ Limited Agreements: - Limited Agreements:
No.	Country	Dividends (%)	Interest (%)	Royalties (%)	Fees for Technical Services (%)
1	Argentina	NIL	15*	10*	10*
2	United States of Amerika	NIL	15*	10*	10*
* The withholding tax rate on interest, royalties and fees for technical services is as provided in the ITA 1967.

+ Income Tax Exemption Order: - Income Tax Exemption Order:
No.	Country	Dividends (%)	Interest (%)	Royalties (%)	Fees for Technical Services (%)
1	Taiwan Economic and Cultural Office P.U.(A) 201 (1998) P.U. (A) 202 (1998)	NIL	10%	10%	7.5%