Areas of
Business
Discover the wide range of business and financial services available in Labuan IBFC
Money Broking
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1. What is a money broking business?
Money broking is defined as the business of arranging transactions between buyers and sellers in money with brokers acting as an intermediary in consideration of brokerage fees paid or to be paid, but does not include the buying or selling of foreign currencies by the broker as a principal in such markets.
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2. Are there any restrictions imposed on the money broking business in Labuan IBFC?
Such companies may only transact business in foreign currency and not deal in Malaysian Ringgit except for the purpose of defraying administrative and statutory expenses. Labuan money brokers are prohibited from dealing with residents other than authorised dealers under the Exchange Control Act 1953.
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3. What is the tax implication if a Labuan entity company undertakes money broking activities?
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.
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