Fee schedules to Labuan regulations to be amended from 1 January 2023

The following Amendment Regulations were gazetted recently1 to amend the respective Principal Regulations as set out in the Table below.
 
Amendment Regulations Principal Regulations
Labuan Companies (Amendment) Regulations 2022  Labuan Companies Regulations 2010
Labuan Islamic Financial Services and Securities (Amendment) Regulations 2022 Labuan Islamic Financial Services and Securities Regulations 2010
Labuan Foundations (Amendment) Regulations 2022  Labuan Foundations Regulations 2010
Labuan Trusts (Amendment) Regulations 2022  Labuan Trusts Regulations 2010
 
The Amendment Regulations will come into operation on 1 January 2023.
 
Common Amendments
 
The Amendment Regulations replace the Third Schedule (‘Existing Third Schedule’) of the respective Principal Regulations with the schedule set out in the respective Amendment Regulations (‘Replacement Third Schedule’). The Existing Third Schedule sets out the fees payable to the Labuan Financial Services Authority (‘the Authority’) for the items specified in the said schedule, e.g. registration fees, filing fees for various documents, and fees payable for copies or extracts of documents.
 
The Existing Third Schedule presently states the fees payable in both US Dollar and Ringgit Malaysia, e.g. ‘USD300/RM1,000’, which suggests that the prescribed fee may be paid in either currency. The Replacement Third Schedule removes all references to Ringgit Malaysia, hence suggesting that the prescribed fee has to be paid in US Dollar or possibly, the Ringgit Malaysia equivalent at the then prevailing exchange rate as at the date of payment.
 
The amount of fees in US Dollar for each item in the Replacement Third Schedule remains the same as the amount stated for the corresponding item in the Existing Third Schedule.
 
Specific amendments
 
Labuan Companies (Amendment) Regulations 2022
 
The Labuan Companies (Amendment) Regulations 2022 also amend the Labuan Companies Regulations 2010 by amalgamating items 45 and 46 of the Existing Third Schedule which deal with certified copies or certified extracts of documents into item 45 of the Replacement Third Schedule.
 
Labuan Islamic Financial Services and Securities (Amendment) Regulations 2022
 
The Labuan Islamic Financial Services and Securities (Amendment) Regulations 2022 also amend the Existing Third Schedule of the Labuan Islamic Financial Services and Securities Regulations 2010 in the following respects: 
  • paragraphs (A) and (B) of item (5)(e)(iv) of the Existing Third Schedule which prescribe that a licensee carrying on Islamic leasing business is to pay the annual licence fee upon approval of the first and subsequent Islamic leasing transaction with a Malaysian resident have been expanded in the Replacement Third Schedule to include Islamic leasing business transactions with non-residents. Concomitantly, paragraph (C) of item (5)(e)(iv) of the Existing Third Schedule which states that no annual licence fee is payable by a licensee that carries on Islamic leasing business transactions with a non-Malaysian resident is deleted;  

  • item (5)(f)(iii) of the Existing Third Schedule which sets out the annual licence fees payable by a Labuan takaful operator which carries on the composite business of family takaful business and general takaful business is removed from the Replacement Third Schedule; and 

  • items (5)(j)(ii) and (5)(j)(iv) of the Existing Third Schedule have been clarified in the corresponding items of the Replacement Third Schedule by making reference to the specific types of business carried on within a registered cell of a Labuan protected cell company. 
Labuan Foundations (Amendment) Regulations 2022
 
The Labuan Foundations (Amendment) Regulations 2022 also amend the Labuan Foundations Regulations 2010 by amalgamating items 7 and 8 of the Existing Third Schedule which deal with certified copies or certified extracts of documents into item 7 of the Replacement Third Schedule.
 
Comments
 
The amendments introduced under the Amendment Regulations are not substantive in nature. It can be expected that corresponding amendments will be made to the Third Schedule of the Labuan Financial Services and Securities Regulations 2010.
 
Alert prepared by Vanessa Ho (Associate) of the Corporate Practice of Skrine.
 
 
 

1 The Labuan Trusts (Amendment) Regulations 2022 were gazetted on 19 October 2022 while the Labuan Companies (Amendment) Regulations 2022, Labuan Foundations (Amendment) Regulations 2022 and Labuan Islamic Financial Services and Securities (Amendment) Regulations 2022 were gazetted on 28 October 2022.
 

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.