Labuan is drafting programs to stimulate capital flows to the country's oil and gas sector

03.11.2011 Low tax jurisdiction Labuan runs incentive programs to attract investment in oil and gas sector. One of the authorities of the state financial bodies pointed out that for many years this raw material sector has been contributing significantly to the economy of the state and is about 20% of GDP throughout Malaysia.

The officials predict a further upgrade of Labuan sector in case of new investment. The first and the most important step that needs to be done is to ensure the inflow of capital of the largest oil companies as the main transactions will be made with their very participation.

Among the incentives for investors in this sector we can name 3% corporate tax rate, 100% exemption from fees paid by non-resident directors, no stamp duty, exemption from taxation of dividends - paid or received.

Expert’s opinion

“Labuan has made absolutely correct calculations and developed programs that can really attract large investors in oil and gas sector. Financial flows will significantly help the process of modernization in this raw materials sphere and, consequently, further increase of investments indicators”.

On the basis: www.tax-news.com

Andrianova Irina ( the lawyer of international consulting department of Honest & Bright)