Why is Labuan Foundation So Special?
Labuan Foundation Truly One of The Best
Labuan Foundation is the best choice for your wealth management tool, more so if you reside in Asia. No Asia countries offer private foundations that governed by Foundation Acts. Labuan Foundation is governed by Labuan Foundation Act 2010. To-date, there are 21 jurisdictions worldwide, including Labuan has Foundation Acts that govern the wealth management activities. Labuan Foundation can be re domiciled to one another among these jurisdictions and vice versa. Here is the 20 jurisdictions worldwide that has Foundation Acts:
The Summary of the Foundation Acts in the Different Jurisdictions:
|Labuan||Mauritius||Panama||Liechtenstein||Switzerland||Jersey||Isle of Man||Seychelles|
|Private and/or charitable||Private and/or charitable||Private and/or charitable||Private and/or charitable||Only charitable foundations.|
No private family foundation
|Private and/or charitable||Private and/or charitable||Private and/or charitable|
|No License Required||Required if want benefits from DTA||No License Required||No License Required||No License Required||No License Required||Require Licence||No License Required|
|No minimum capital/endowments||No minimum capital/endowments||Minimum Capital USD 10K||Minimum Capital CHF 30,000||Authorities will check initial endowment is sufficient to achieve goals||No minimum capital/endowments||No minimum capital/endowments||USD 1|
|Required to register with the Registrar||Required if obtain legal personality||Required to register with the Registrar||Required to register at Office of Land & Public Domain||Family foundation – no registration required. Other foundation – register @ commercial register||Required to register with the Registrar||High court has extensive supervisory powers||Required to register with the Registrar|
|Tax: Investment Holding: 0% or Trading Activities: 3% or pay flat fee of RM20,000||Exempt if non-resident||Exempted||0.1% on declared net assets subj to min.of CHF1,000||Tax exempted for charitable purposes||Tax free||Tax free||Tax free|
|Resident Secretary Required||Resident Secretary Required||Secretary not required but need a Resident Agent||Agent for Service||No requirement for specific local Secretary||Qualified member a “guardian” required||No requirement for qualified person||Appoint registered agent who may not be resident|
Labuan Private Foundation-Truly one of its Kind To Help You Create a Lasting legacy!
Labuan Private Foundation is the ultimate vehicle for personal wealth preservation and succession. Smart investor will use Foundation to empower himself to secure a sound future! Here is the outlined of the key advantages of Labuan Private Foundation for your better understanding.
16 key advantages of Labuan Private Foundation：
- You have 100% control all the time!
- You can design how your foundation is to be structured, managed, the types of assets to hold, and beneficiaries with freedom to change anytime through the Charter!
- Founder can be individuals or corporations!
- Relatively low cost to operate the Foundation compared to Trust!
- Unenforceability against any legal claims after 2 years!
- It is a corporate body entitled to enter contact and perform lawful dealings!
- It is a legal entity fully protected by Labuan Foundation Act 2010, without need to refer to other jurisdiction law!
- Duration of foundation can be perpetual or fixed time of your choice!
- No minimum amount of assets requirement to be injected for initial set-up!
- Permissible to hold Malaysian assets!
- Muslims are permissible to set-up the Labuan Foundation with or without syariah compliant!
- Can be used for charitable purposes!
- Protected with highest degree of confidentiality!
- It can re-domicile to another country of your choice anytime!
Labuan Private Foundation can also used to manage its own property and assets for charitable or non-charitable purposes for the following activities:
• Personal wealth management
• Intergenerational wealth succession via a Family Office
• Making grants and charities
• Prevention and relief of poverty
• Advancement of religion, profession or education
• Advancement of health crisis including prevention and relief of human sickness
• Social and community advancement care for the elderly, disabled and the young
• Advancement of culture, arts and heritage
Labuan Private Foundation not only prefect as wealth management tool, the main attraction also on the key advantage on tax which provide great opportunities with great savings in a long run.
Tax Profile of Labuan Private Foundation as follows:
* Low corporate tax: 3% or RM20,000 on Trading activities
* As an Investment Holding- zero corporate tax
* Income derived from Malaysian assets and business dealings are subject to 24% tax
* No withholding tax on interest, management fee, royalty fee and technical fee
* No tax on distribution of gains to the beneficiaries of individual or corporate
* 0% tax on Directors’ fee payable to foreign individual or corporate director
* 50% tax rebate on personal income of professional expatriate employment
* No stamp duty payable for execution of Charter and Articles of Association and other instruments relating to offshore dealings
* Ability to access to more than 70 Malaysia Tax Treaty partners
* Tax exempted on Zakat payment
Send us your enquiry today for more on Labuan Private Foundation if it able to meet your objective for wealth legacy!