Professional Documents
Culture Documents
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1955
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CONTENTS
TRUSTS 06
TRUSTS: THE KEY ADVANTAGES 08
WHY LABUAN TRUSTS? 11
TYPES OF TRUSTS IN LABUAN IBFC 20
ABOUT LABUAN IBFC 26
LABUAN FINANCIAL SERVICES AUTHORITY 26
LABUAN IBFC INCORPORATED SDN BHD 28
LABUAN IBFC LEGISLATIVE FRAMEWORK 28
FAQs 22
LABUAN SERVICE PROVIDERS 35
TRUSTS
A TRUST IS AN
EXCEPTIONAL WEALTH
MANAGEMENT
AND DYNASTIC
SUCCESSION VEHICLE
Assets in a trust are held in the trustee’s name and are dealt in
accordance with the trust deed. The trustee has a fiduciary duty
to ensure the trust assets are managed in the best interest of
the beneficiaries.
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1967
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TRUSTS A TRUST IS AN
THE KEY EFFECTIVE VEHICLE
ADVANTAGES FOR MANAGING
YOUR WEALTH
Wealthy individuals, families as well as corporations and non- A trust can provide:
profit organisations will find trusts a versatile solution for their
varied objectives. Traditionally used in common law countries, • Wide reserved powers to a settlor
a trust is ideal for individuals who wish to assume control over
their assets and businesses while being accorded premium legal •
Protection of a trust’s assets against any creditor claims,
protection. insolvency, divorce and customary inheritance claims
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WH Y
LABUAN TRUSTS?
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WEALTH
PRESERVATION
A Labuan Trust helps
preserve your wealth in a
tax-efficient manner
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FLEXIBILITY
AND CONTROL
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A Labuan Trust provides you with the ability to choose and create a trust that is compatible with your
needs. As a settlor, you have control over how you want your trust structured, the types of assets
held, your trustees and the duration of your trust’s life.
A trust structured out of Labuan may be used for all lawful purposes, be it as a family legacy or for the
management of assets and funds by individuals or corporations. It can be set up without restriction by
individuals and corporations who are resident and non-residents of Malaysia.
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DURATION
OF A TRUST
A Labuan Trust can have
either a fixed or infinite
life span. In addition, the
term of the trust may be
lengthened or shortened
during its life-time
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PROTECTION
A Labuan Trust is governed
by the Labuan
Trusts Act 1996
(The Trusts Act),
which was subsequently
updated in 2010
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Robust and cutting-edge, the Trusts Act provides numerous layers
of asset protection. Some notable statutory firewall protection
measures include:
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CONFIDENTIALITY
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As a reputable and recognised international business and financial centre, we take confidentiality very seriously. Strong
confidentiality protection is provided under the Trusts Act. Under Section 8A of the Act, any person found breaching
the secrecy provision, upon conviction, shall be liable to a fine not exceeding one million ringgit or imprisonment not
exceeding three years or both.
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OTHER TYPES
OF TRUSTS
AVAILABLE IN
LABUAN IBFC
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CHARITABLE TRUST
A Labuan Charitable Trust may be created to fulfill a wide variety of philanthropic aims, including the relief and eradication
of poverty, advancement of education, promotion of art, science and religion, protection of environment, advancement of
human rights and fundamental freedom.
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PURPOSE TRUST
A Labuan Purpose Trust may be established to meet a particular purpose, be it charitable or otherwise.
A Labuan Spendthrift or Protective Trust is particularly appealing if you wish to protect the assets of the trust against the
beneficiaries’ future creditors. It can also be used to curb the threat of poor spending habits of its beneficiaries.
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SPECIAL TRUST
The Labuan Special Trust is ideal for a settlor who wants to establish a trust that disengages the trustee from management
responsibility.
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A BO UT
LABUAN IBFC
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As Asia Pacific’s preferred international business and LABUAN FINANCIAL SERVICES AUTHORITY
financial centre, Labuan International Business and Financial
Centre (IBFC) presents investors with an ideal balance of Labuan Financial Services Authority (Labuan FSA), a statutory
fiscal neutrality and certainty. body established under provisions of the Labuan Financial
Services Authority Act 1996, is a one-stop supervisory and
Well supported by a comprehensive, modern and regulatory body for Labuan IBFC.
internationally recognised legal framework, Labuan IBFC
provides clear legal provisions and industry guidelines Labuan FSA subscribes to international standards and best
enforced by its regulator, Labuan Financial Services Authority practices in financial services and prudential regulation.
(Labuan FSA). Labuan FSA’s key role is to license and regulate licensed
entities operating within Labuan IBFC and to ensure that all
Labuan IBFC also has a wide range of business and such companies remain in compliance with the internal and
investment structures for cross border transactions, international best standards adopted by the jurisdiction.
business dealings and wealth management needs. These
unique qualities offer sound options for regional businesses Labuan FSA, in close collaboration with Labuan IBFC
going global or global businesses looking at penetrating Incorporated, is also responsible for product research
Asia’s burgeoning markets. Labuan IBFC allows investors and market development, aimed at further developing the
access to the majority of Malaysia’s extensive network of jurisdiction via the introduction of new products and services.
more than 70 double-taxation treaties.
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LABUAN IBFC INCORPORATED SDN BHD LABUAN IBFC’S LEGISLATIVE FRAMEWORK
Labuan IBFC Incorporated Sdn Bhd (Labuan IBFC Inc) is the Labuan IBFC is governed and regulated through eight Acts
official promotion and marketing agency for Labuan IBFC. In of Parliament:
addition, Labuan IBFC Inc acts as the first point of reference
for investors into Labuan IBFC. • Labuan Business Activity Tax Act 1990
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• Labuan Financial Services Authority Act 1996 Copies of the Acts are available at www.LIBFC.com.
• Labuan Financial Services and Securities Act 2010 In addition, Labuan FSA also issues Guidelines and
Circulars to reinforce and bolster provisions within
• Labuan Islamic Financial Services and Securities Act the Acts to ensure Labuan IBFC remains responsive
2010 to changes in the international financial landscape.
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FAQs
WHAT IS A TRUST?
A trust is a relationship in which one or more persons hold another person’s assets or
property for the benefit of others. The basic concept of a trust involves the person who
creates the trust (called a settlor); the person who holds the property for those who
benefit (the trustee); those who ultimately receive the benefits of the trust (beneficiary).
In Labuan IBFC, a trust can be set up for a wide range of purposes ranging from
discretionary, charity, spendthrift protection etc. One special form is the Labuan
Special Trust (LST).
The benefit of a LST is that there is a distinct separation between the custodian role
of the trustees and the management of the company, which is the responsibility of the
directors only.
• Asset protection
• Enhanced confidentiality
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WHAT IS THE DIFFERENCE BETWEEN A TRUST AND A FOUNDATION?
Trusts Foundations
Assets, upon being vested in the trust, are legally owned by Assets are legally owned by the foundation. Upon registration
the trustee. of the foundation, the property endowed or to be endowed
becomes an estate separate and apart from that of the
founder by acquiring a separate legal entity status.
The person who establishes the trust is known as the settlor The person(s) who creates the endowment is known as the
and the persons who benefit from the trust are known as founder and the persons who benefit from the endowment
beneficiaries. are known as the beneficiaries.
The trust deed is the document that establishes the trust. The charter is the main constituent document of a foundation.
A foundation may also have articles which are a set of more
detailed rules governing its administration matters.
The appointed trustee is the person responsible to hold the An appointed body called the Council is entrusted to carry
trust assets and administer the trust. out the business and affairs of the foundation and pursue
its objects. Officers and Council are required to act in
accordance with the terms of the charter and articles.
The settlor may have certain reserved powers after The foundation does not have a share capital, does not
establishing the trust and vesting the legal title in the trust recognise shareholders and the founder does not retain or
assets to the trustee. acquire any ownership rights in relation to the foundation’s
property. The law does recognise the beneficiaries or the
persons in whose benefit the foundation was created, which
can include the founder.
A trust can be established for any lawful purpose but a trust A foundation can be established for any lawful purpose
that is set up for a purpose must appoint an enforcer. which shall be spelt out in the charter of the foundation.
There is no capital requirement for trusts. There is no capital requirement for foundations.
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WHAT ARE THE EXCEPTIONS TO TRUST PROPERTY WILL THE SETTLOR STILL HAVE ACCESS TO THE
WHICH CAN BE HELD ON TRUST? PROPERTY ONCE PLACED IN A LABUAN TRUST?
Where a trust property includes Malaysian property, prior Yes, the settlor has certain reserved powers after establishing
approval must be obtained from Labuan FSA. the trust and vesting the legal title in the trust property to the
trustee. A settlor may also be a beneficiary of the trust, provided
HOW SECURE IS A LABUAN TRUST? he/she is not the sole trustee.
The trust is subject to the Labuan Trusts Act 1996 (updated ARE THERE ANY RESTRICTIONS ON THE APPOINTMENT
in 2010) that is in accord with the establishment of a wide OF A TRUSTEE?
diversity of trust structures for the management of international
and approved Malaysian property. Trust is a form of ownership There are no restrictions imposed on the number of trustees,
with roots in the English common law and has been recognised however, one (1) of the trustees must be a Labuan trust
and established for centuries. company.
HOW STRINGENT IS THE DISCLOSURE OF WHAT IS THE TAX PROFILE FOR A LABUAN TRUST?
INFORMATION FOR A LABUAN TRUST?
• Under the Labuan Business Activity Tax Act 1990 (LBATA),
The confidentiality provisions restrict the officer, council Labuan trust pays 3% tax on its audited net profits or
member, supervisory person and secretary from disclosing any RM20,000 (upon election) per annum, if it undertakes any
information, unless otherwise required or provided by the law Labuan business trading activity. If it undertakes only Labuan
and Act. The penalty meted out to offenders is three (3) years non-trading activity, the tax rate is 0%.
imprisonment and/or one million ringgit (RM1million) fine.
• Any income derived from the Malaysian property is subject
IS A LABUAN TRUST REQUIRED TO BE REGISTERED to tax under the Malaysia Income Tax Act 1967. Non-
WITH THE AUTHORITY? Malaysian property income shall be subject to Labuan
Business Activity Tax Act 1990 (LBATA).
No, registration of the trust is not mandatory.
• Distributions from Labuan trust to its beneficiaries are
WHO ARE THE PARTIES TO A LABUAN TRUST? exempted from Malaysian tax.
• Settlor – The person who establishes the trust and provides • Real property gains tax may apply on gains from disposition
trust property into the trust. of Malaysian real properties. No other capital gains tax
regime.
• Trustee – The person or entity responsible to hold the title
to the property and administer the running of the trust. A • Stamp duty exemption on its constituent document and
Labuan trust shall have at least one trustee and one of which instruments in connection with its Labuan business activity.
shall be a Labuan trust company.
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LABUAN TRUST COMPANIES
Al-Aman Trust Services Limited Brumby Centre labuan@tmf-group.com
Lot 42, Jalan Muhibbah
87000 Labuan, Malaysia
Tel: +6087 593828
AMS Trust Company Limited Unit Level 11(A), Main Office Tower azizan.som@ams-trust.com
Financial Park Labuan, Jalan Merdeka
87000 Labuan F.T.
Tel: +6087 451799
ALPADIS Trust (Labuan) Ltd. U0065, 3rd Floor, Jalan OKK Awang Besar info.my@asia.alpadis-group.com
87007 Labuan, Malaysia
Tel: +6087 595700
Amanah Raya (Labuan) Limited Lot 2(a), Level 4, Wisma Lazenda cttrust@streamyx.com
Jalan Kemajuan, P.O. Box 81479
87000 Labuan, Malaysia
Tel: +6087 421663
Cheng & Co Int’ Limited ( FKA Masterco Unit Level 11(A), Main Office Tower ycsin@ccai.asia
Managed Trust Limited) Financial Park Labuan
Jalan Merdeka, 87000 Labuan F.T.
Tel: +6087 451799
Corporate Services Trust Co Ltd. Unit B, Lot 49, 1st Floor, Block F info@cstcl.com.my
Lazenda Warehouse 3
Jalan Ranca Ranca, 87000 Labuan, Malaysia
Tel: +6087 419100
Hans Advisory & Trust Co Ltd. Lot A020, Level 1, Podium Level sue@hansworldwide.com
Financial Park Labuan
Jalan Merdeka, 87000 Labuan, Malaysia
Tel: +6087 427745
Integrated Agents Trust Ltd. Lot 1, 2nd Floor, Wisma Siamloh joyce.ng@iatl.com.my
Jalan Kemajuan
87007 Labuan, Malaysia
Tel: +6087 417810
IFS Trust Labuan Limited Unit 3(1), Main Office Tower info@ifslabuan.com.my
Financial Park Labuan
Jalan Merdeka, 87000 Labuan, Malaysia
Tel: +087 427408
KPMG Labuan Trust Company Limited 2nd Floor, Wisma Kishan Singh sfchong@kpmg.com.my
No. UO229D, Jalan Kemajuan
87007 Labuan, Malaysia
Tel: +6087 415467
Labuan Ins International Trust Ltd. Lot 19, Level 1, Suite A admin@labuaninstrust.com
Lazenda Commercial Centre Phase 3
Jln OKK Abdullah, 87000 Labuan, Malaysia
Tel: +6087 417807
Law & Commerce Trust Limited 2nd Floor, Lot 19, Ictrust@tm.net.my
Lazenda Commercial Centre
Phase 3, 87007 Labuan, Malaysia
Tel: +6087 421644
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LABUAN TRUST COMPANIES
Masterco Managed Trust Limited Lot 2(a), Level 4 ycsin@ccai.asia
Wisma Lazenda, Jalan Kemajuan
P.O. Box 81840, 87000 Labuan, Malaysia
Tel: +6087 421663
MAYBANK International Trust (L) Ltd. Level 16(B), Main Office Tower maytrust@tm.net.my
[F.K.A. MAYBAN INTERNATIONAL Financial Park Complex
TRUST (L) LTD] Jalan Merdeka, 87000 Labuan, Malaysia
Tel: +6087 414406
Portcullis Trusnet (Labuan) Limited Level 6(0), Main Office Tower cheethong.foo@portcullis-trustnet.com
Financial Park Complex
Jalan Merdeka, P.O. Box 80107
87011 Labuan, Malaysia
Tel: +6087 439191
RHB International Trust (L) Ltd. Level 15(B), Main Office Tower rhbit@streamyx.com
Financial Park Complex
Jalan Merdeka, 87000 Labuan, Malaysia
Tel: +6087 417480
Shearn Skinner Trust Company Ltd. Lot 2 & 3, Wisma Lazenda sstc@tm.net.my
Jalan Kemajuan, P. 0. Box 81479
87024 Labuan, Malaysia
Tel: +6087 414073
Tricor Trustco (Labuan) Ltd. Level 15(A2), Main Office Tower info@my.tricorglobal.com
Financial Park Labuan
Jalan Merdeka, 87000 Labuan, Malaysia
Tel: +6087 453288
Trust Labuan Tax Inc. Unit B, Lot 49, 1st Floor, Block F clament.chua@cstcl.com.my
Lazenda Warehouse 3
Jalan Ranca Ranca, 87000 Labuan, Malaysia
Tel: +6087 419100
VISTRA Trust (Labuan) Limited [F.K.A. Tiara Labuan, Jalan Tanjung Batu itmc@itmcfiduciary.com
CREDENCE TRUST (LABUAN) 87000 Labuan, Malaysia
LIMITED] Tel: +6087 583688
ZICOlaw Trust Limited Unit Level 13(A), Main Office Tower azizan.som@ziltco.com.my
Financial Park Labuan
Jalan Merdeka, 87000 Labuan, Malaysia
Tel: +6087 451688
ZRC International Trust Inc. Unit Level 4A, Main Office Tower kab_mgt@yahoo.com
Financial Park Complex
Jalan Merdeka
87000 Labuan, Malaysia
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