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Business
Discover the wide range of business and financial services available in Labuan IBFC

Leasing

  • 1. What is Labuan leasing?
    Labuan leasing means the business of letting or sub-letting 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. Property includes any plant, machinery, equipment or other chattel attached or to be attached to the earth. With the exception to the transportation of passengers or cargo by sea, or the letting out of charter of ships on a voyage or time charter basis, Labuan leasing companies are allowed to carry on leasing of ships on a "bareboat" basis.
  • 2. What is the procedure for setting up a leasing company in Labuan IBFC?
    The applicant must be either a company incorporated or registered under the Labuan Companies Act 1990 or a special purpose vehicle company set up to facilitate leasing transactions, including inter-company transactions.
  • 3. What is the tax treatment under Labuan tax laws for leasing companies established in Labuan IBFC?
    The income is taxed in a similar manner as other Labuan entities under the Labuan Business Activity Tax Act 1990 (LBATA). The rate of tax imposed is 3% of audited net profits or fixed tax of RM20,000, as elected.
  • 4. What is the governing legislation for the Labuan leasing business?
    The Labuan leasing business is governed by the following Labuan laws:
    • Labuan Financial Services and Securities Act 2010 
    • Labuan Islamic Financial Services and Securities Act 2010 
    • Labuan Companies Act 1990 
    • Labuan Business Activity Tax Act 1990.
  • 5. What are the fees payable by Labuan leasing companies in Labuan IBFC?
    The fees payable are illustrated in the table below:
    Fees
    Processing Fee
    Annual Fee
    Single transaction with Malaysian resident
    RM1,000
    USD350
    RM60,000
    USD20,000
    Subsequent transaction with Malaysian resident
    RM1,000
    USD350
    RM20,000
    USD6,000
    Single / subsequent transaction with non-Malaysian resident
    RM1,000
    USD350
    Nil
    Nil
    All licensees are required to pay to Labuan FSA annual licence fees on or before 15 January of each year.
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