Registration of a Labuan Trust or Labuan Special Trust
A Labuan Trust has the same meaning assigned to it by Part II of the Labuan Trusts Act 1996 (LTA). What is trust? An agreement through which a party (an individual or a settlor) gives the right to another party (the trustee) to manage various assets and properties in the name of a beneficiary (or […]
Labuan Companies (Amendment) Regulations 2022
In Labuan, offshore and foreign offshore companies can be incorporated, registered, and administered under the Labuan Companies Act of 1990. Labuan companies are permitted to do business in Malaysian currency with a Malaysian resident and to conduct petroleum activities in Malaysia as of March 20, 1997, under the Labuan Companies (Amendment) Act 1996. The sponsors […]
Labuan Foundations
The Labuan Foundations Act of 2010 regulates the formation of foundations in Labuan as well as their administration and dissolution after they have been established. What is a Labuan foundation? A Labuan foundation is similar to a company in that it is a corporate body with a separate legal entity, established to hold assets in […]
Labuan Islamic Financial Services and Securities (Amendment) Regulations 2022
The Labuan Islamic Financial Services and Securities Act 2010, which went into effect on February 11, 2010, establishes the licencing and regulatory framework for Islamic financial services and securities in Labuan. It also allows for the establishment of Islamic banking and Takaful businesses, including captive Takaful businesses, as well as Labuan Islamic trusts, foundations, limited […]
Income Tax (Deduction for Investment in Approved New Food Production Project) Rules 2022
Provided that applications were received by the Ministry of Agriculture and Agro-Based Industry by the end of 2015, the following food production projects are eligible for specific tax incentives: The following are some of the incentives: The government, realising that it needs to continue to support the development and growth of the agro-food industry, proposed […]
Income Tax (Exemption)(No. 6) 2020 (Amendment) Order 2022: Approved New Food Production Project
Provided that applications were received by the Ministry of Agriculture and Agro-Based Industry by the end of 2015, the following food production projects are eligible for specific tax incentives: The following are some of the incentives: The government, realising that it needs to continue to support the development and growth of the agro-food industry, proposed […]
FAQ on 2% WHT deducted from payment by payer companies to agents, dealers, or distributors
Section 107D was incorporated into the Income Tax Act of 1967 (ITA) on January 1, 2022. It says that companies that make payments to agents, dealers, or distributors due to sales, transactions, or schemes must withhold tax at 2% of the gross amount. This applies to payments made to agents, dealers, or distributors who are individuals and […]
Mallalieu v Drummond: Different treatments for ‘Uniform’, ‘Costume’ and an ‘Everyday Wardrobe’
If you’re a businessman, you shouldn’t be able to deduct money spent on the clothes you wear every day. This is still the case even if formal attire is mandated by some other factor, such as the regulations of a professional organisation. No deduction is allowed from trading profits for the costs of clothing that […]
The Badges of Trade: Motive/Intention of Taxpayer
ALF Properties Sdn Bhd v Ketua Pengarah Jabatan Hasil Dalam Negeri Civil Appeal No W-01-203-97. Appeal from the High Court, Kuala Lumpur – Income Tax Appeal No R1-14-13-95. Court of Appeal, Putrajaya. Judgment was delivered on 14 May 2005 and 18 August 2005 1. The appellants, a private limited company, were incorporated on 8 August […]
The Badges of Trade: Frequency of Transactions
Even if a single transaction could be considered a trade, the idea of trading is more likely to be implied when a lot of transactions are done in a planned way. When different sets of actions, none of which are traded on their own, are done on various occasions that aren’t too far apart, the […]
