shariah compliant pure captive via labuan ibfc labuan ibfc inc sdn bhd is the official agency...
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Shariah Compliant Pure Captive via Labuan IBFC
LABUAN IBFC INC SDN BHD IS THE OFFICIAL AGENCY AUTHORISED BY THE MALAYSIAN GOVERNMENT TO MARKET LABUAN AS THE PREMIER INTERNATIONAL BUSINESS AND FINANCIAL CENTRE IN ASIA PACIFIC
Summary
1. Definition and operational structures.
2. Who qualifies?
3. How to set-up a Labuan Shariah compliant pure captive (“Labuan SPC”)?
4. Permitted business activities.
5. Operational requirements.
6. Shariah compliance.
7. Labuan SPC - How it works?
8. Opportunities in the Malaysian market.
Definition and Operational Structures
Who qualifies?
How to set-up a Labuan SPC?
Labuan SPC permitted business activities
Labuan SPC operational requirements
Shariah compliance
9
Labuan Shariah Compliant Pure Captive - How it works?
Scenario• Company A – Singapore company • Company B – Licensed Labuan SPC wholly owned by A• C – Licensed domestic insurance company in Singapore• A & companies within its group insures with C (fronting)• C reinsures most of the risks with B• B retains some risks (e.g. 15%) and reinsures the rest with
international reinsurers at competitive rates
Advantages• Low tax regime – 3% of audited profits or MYR20,000• Tax deduction for premiums• No WHT on dividends paid by B• Creation of profit centre in B• Retains control of the group’s risk management• Access to competitive market rates for re-insurance• Conducive regulatory environment
Retained Risks
Insures withSingapore
co. A
Domestic Singapore Insurance
co. C
Reinsures with
Insured with International Reinsurers
15%
85%
Labuan co. B
0% WHT dividends
Opportunities in Malaysian market Opportunities in the Malaysian market
Please visit – www.LabuanIBFC.my
LABUAN IBFC IS THE OFFICIAL AGENCY SANCTIONED BY THE MALAYSIAN GOVERNMENTTO MARKET LABUAN AS THE PREMIER INTERNATIONALBUSINESS AND FINANCIALCENTRE IN ASIA PACIFIC