GUIDE TO APPLY FOR LABUAN GIFT PROGRAM FOR COMMODITY TRADING BUSINESS
With the sole idea of attracting global companies to use Malaysia as an international
trading base, Labuan FSA launched the Labuan International Commodity Trading Company (LITC) which comes with designed pack of incentives under the Global Incentives for Trading (GIFT) program. The oil, gas and energy industry is central to Malaysia’s economic growth, contributing to one-fifth of the national GDP over the past decade. With new opportunities for investment in these sectors and many global traders are begin to ride on GIFT incentives and to use Malaysia as their regional base to reach out to growing markets in Asia region and beyond.
The LITC business under the GIFT program is permitted to trade a array of commodities, in any currency other than Ringgit Malaysia as follows:
1. Petroleum and petroleum-related products including liquefied natural gas (LNG)
2. Agriculture products
3. Refined raw materials
4. Chemicals and
5. Base minerals
9 special advantages of GIFT program:
* You can deal unlimited with Malaysians for Liquefied Natural Gas and coal products
* You are allowed to established more than one operational offices anywhere in Malaysia
* Your corporate tax is only 3% on chargeable profits
* 100% tax exemption for foreign directors’ fee earned
* 50% tax rebate for employment of expatriates’ income earned
* Tax exemption of interest payout with no withholding tax
* Tax exemption on royalties payout with no withholding tax
* Tax exemption on dividends payout
* No sales tax and service tax
Upon successfully obtained the GIFT license, you are exempted for the first 5 years qualifying criteria for the followings:
* minimum annual turnover of USD100 million
* minimum RM3 million spending on Malaysia residents
* minimum employment of 3 professional traders with minimum salary of RM15,000
Why Labuan GIFT is better than Singapore’s GTP program?
Recently, there have been trend of interesting move from Singapore Global Traders to Labuan GIFT program. This move caused by high cost of operations of wages and rental in Singapore. Traders can chose their preferred locations anywhere in Malaysia including Iskandar Johor which is just a link to Singapore! The company should consider its own position within its industry and jurisdiction with its ability to meet the various requirements in the short and medium term.
Comparison Between Labuan GIFT and GTP Singapore
One of the best features in the program which allow you to establish your LITC ‘s operational office(s) anywhere in Malaysia which may include but not limited to the following functions:-
#Banking, Finance and Treasury Management
#Market research and product portfolio development
#Marketing and Sales planning
CP Trust GIFT License Application Services
Our one-stop license application service level for Labuan GIFT License include as follows:
* Consultation of your eligibility and procedures based on your profile
* Profiling, due diligence and guidance documentation preparation
* Preparation of Business Plan and Financial Forecast
* Submission and supervision of applicant process approval
* Act as your liaison and contact point with Labuan FSA for all correspondence and arrange interview (if any)
Approval Time Line for Labuan GIFT License: Approximate 30 to 45 days
Send us your enquiry today to guide you how to get started your commodity trading business in Labuan! We ‘simplify the complexities’ of your investment.
We required sufficient information from you to better advise you on your eligibility for Labuan GIFT license, we will keep all information received confidential and private.