IN MIDST OF EVOLUTION
diaries present here not just for tax reasons but (also) in the area of captive markets,” he said at a half-day forum entitled “The Future of Tax Planning and Wealth Management: Transparency and Substance For All?”
“We will be focusing on niche areas like wealth management, leasing, captive insurance, commodity trading and the likes because at the end of the day, there will be initiatives like the Common Reporting Standard (CRS) and Base Erosion Shifting (BEPS) that will flatten the tax angle.”
Mah said many intermediaries already were present in Labuan IBFC because of its ecosystem and this was something that would strengthen with time.
“There are intermediaries like financial technology firms that match up with financial institutions to finance transactions. For these firms, it is not just about tax but the need for a conducive environment to do their business. This is where we step in,” said Mah.
Mah had earlier said the combination of the CRS and BEPS had brought on a “new normal” for the financial world.
“We believe that as businesses adopt the new normal, it would be natural for them to consider establishing in a well-regulated and cost-efficient jurisdiction to facilitate cross-border transactions and investments, including re-domiciling their businesses. Labuan IBFC’s location and accessibility make it ideal for Asian-based firms,” he said.
Association of Labuan Banks chairman Khairudin Abdul Rahman said the transition to CRS had already been factored in, thanks mainly to the Foreign Account Tax Compliance Act (FATCA).
“I believe the CRS is an extension of the FATCA, so what we are doing now is just tweaking the groundwork already laid down by FATCA,” he said.
Labuan IBFC is a midshore financial centre that caters to both corporate and private clients with a wide range of solutions and services.