Quiz on Offshore Markets

What is the primary role of the Labuan Financial Services Authority (Labuan FSA)?

• To regulate domestic banking only

• To promote Labuan as an international center for business and financial services

• To manage personal income tax exemptions

• To oversee only Islamic finance activities

Which of the following is a characteristic of an Offshore Financial Center?

• Strict exchange control requirements

• High tax environment

• Limited financial institutions

• Maximum confidentiality

What is the tax rate imposed on offshore trading activities in Labuan?

• 20% flat rate

• Zero percent

• 15% of gross income

• 3% of audited net profits

Which of the following is NOT a type of business activity allowed in Labuan?

• Wealth management

• Banking

• Domestic insurance business

• Insurance

What is the primary currency denomination used in Labuan IBFC?

• Predominantly non-ringgit

• Euro

• US Dollar

• Malaysian Ringgit

What is the main clientele of Labuan IBFC?

• Both residents and non-residents equally

• Mainly non-residents

• Only local businesses

• Mainly residents

What type of financial services does Labuan IBFC cater to?

• Only conventional banking

• Only investment banking

• Digital financial services

• Only Islamic finance

What is the maximum deductible amount for interest payments to Labuan entities?

• 50%

• 100%

• 67%

• 30%

Which act governs offshore companies in Labuan?

• Labuan Financial Services and Securities Act 2010

• Labuan Companies Act 1990

• Labuan Trust Act 1996

• Labuan Business Activity Tax Act 1990

What is the tax treatment for offshore non-trading activities in Labuan?

• 15% flat rate

• 20% of gross income

• 3% of audited net profits

• Zero percent