Labuan Offshores Trusts Act 1996 · Updated to 1 Dec 2011 · Part II · Creation and Recognition of Labuan Trusts
7. Existence of Labuan trust
Official textFrom Laws of Malaysia Online, unchanged
The settlor of a Labuan trust may be a qualified person or a resident.
settlor
―settlor‖ means a person who makes a trust and includes a person who provides trust property or makes a testamentary disposition on Labuan Trusts 11 trust or to a trust, but does not include a person who contributes to a unit trust;
The trust property shall not include any Malaysian property unless prior approval of the Authority is obtained or the trust is a trust for charitable purposes.
trust property
―trust property‖ means the property for the time being held on trust;
The beneficiaries of a Labuan trust may be a qualified person or a resident.
Labuan trust
―Labuan trust‖ has the meaning assigned to it under subsection 8(1);
A Labuan trust company shall be one of the trustees of a
Labuan trust company
―Labuan trust company‖ means a corporation registered as a Labuan trust company under Part V of the Labuan Financial Services and Securities Act 2010;
Labuan trust.
Where the trust property includes Malaysian property, any income derives from the trust property shall be subject to the Income
property
―property‖ includes— (a) property of every kind, whether corporeal or incorporeal, movable or immovable, tangible or intangible, however acquired; or (b) legal documents or instruments in any form, including electronic or digital, evidencing title to or interest in, such property, including bank cheques, money orders, shares, securities, bonds, bank drafts and letters of credit;
Tax Act 1967 [Act 53].
Where the trust property does not include Malaysian property, any income derives from the trust property shall be subject to the
Labuan Business Activity Tax Act 1990 [Act 445].
Labuan Trusts 15
For the purposes of this section, ―Malaysian property‖ means any property which is situated in Malaysia.
Malaysia
―Malaysia‖ means the territories of the Federation of Malaysia, the territorial waters of Malaysia and the sea-bed and subsoil of the Labuan Trusts 9 territorial waters, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the sea-bed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia and in accordance with international law as an area over which Malaysia has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non-living;
Terms defined in this Act
Authority
Defined · s 2―Authority‖ means the Labuan Financial Services Authority established under section 3 of the Labuan Financial Services Authority Act 1996;
business
Defined · s 46B―business‖, in relation to a company, includes the holding of shares or other assets and non-commercial activities;
Labuan trust
Defined · s 2―Labuan trust‖ has the meaning assigned to it under subsection 8(1);
Labuan trust company
Defined · s 2―Labuan trust company‖ means a corporation registered as a Labuan trust company under Part V of the Labuan Financial Services and Securities Act 2010;
Malaysia
Defined · s 2―Malaysia‖ means the territories of the Federation of Malaysia, the territorial waters of Malaysia and the sea-bed and subsoil of the Labuan Trusts 9 territorial waters, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the sea-bed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia and in accordance with international law as an area over which Malaysia has sovereign rights for the purposes of exploring and exploiting the natural resources, whether living or non-living;
property
Defined · s 2―property‖ includes— (a) property of every kind, whether corporeal or incorporeal, movable or immovable, tangible or intangible, however acquired; or (b) legal documents or instruments in any form, including electronic or digital, evidencing title to or interest in, such property, including bank cheques, money orders, shares, securities, bonds, bank drafts and letters of credit;
qualified person
Defined · s 2―qualified person‖ means a person who is not a resident of Malaysia;
resident
Defined · s 2―resident‖ means any person— (a) who is a citizen or permanent resident of Malaysia; or (b) who has established a place of business and is operating in Malaysia, other than— (i) a Labuan company or a foreign Labuan company incorporated or registered under the Labuan Companies Act 1990; (ii) a Labuan foundation established under the Labuan Foundations Act 2010; and (iii) a partnership registered under the Labuan Limited Partnerships and Limited Liability Partnerships Act 2010, and includes a person who is declared to be a resident pursuant to section 43 of the Exchange Control Act 1953;
settlor
Defined · s 2―settlor‖ means a person who makes a trust and includes a person who provides trust property or makes a testamentary disposition on Labuan Trusts 11 trust or to a trust, but does not include a person who contributes to a unit trust;
trust
Defined · s 2―trust‖ includes the trust property and the rights, powers, duties, interests, relationships and obligations under a trust;
trust property
Defined · s 2―trust property‖ means the property for the time being held on trust;
Part III
Beneficiaries of Labuan Trusts
Part IV
Trustees of Labuan Trusts
Part V