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The governing legislation for the business and operations of Labuan Partnerships is the Labuan Limited Partnerships and Labuan Limited Liability Partnerships Act 2010 and Sharia compliant Partnerships are governed by the Labuan Islamic Financial Services and Securities Act 2010.
A Labuan Partnership may be considered a Labuan Trading Company or a Labuan Non Trading Company for tax purposes depending on the nature of its activities, this should a Partnership be involved in trading activities, be it for goods or services then it shall be considered a Labuan Trading Company as defined in Section 2 of the Labuan Business Activity Tax Act 1990 and have a yearly election of either paying a flat tax rate of MYR20,000 per annum, or 3 percent of audited net profits.
On the other hand, should the Partnership carry out investment holding activities as defined in Section 2 of the Labuan Business Activity Tax Act 1990, then Section 9 of the same Act applies and provides that all Labuan Non Trading Companies are not subjected to tax.
There are three forms of Partnerships in Labuan IBFC, namely:
- Limited Partnerships
- Limited Liability Partnerships
- Recognised Limited Liability Partnerships
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Last Updated on Friday, 24 June 2011 03:28 |
