Asset Leasing in Labuan
Labuan asset leasing is defined as the business of letting or subletting property on hire for the purpose of the use of such property by the hirer, regardless whether the letting is with or without an option to purchase the property, including charters of ships.
Assets include properties – any plant, machinery, equipment or other chattel attached or to be attached to the earth, and charters of ships means bareboat charters only and does not include the transportation of passengers, cargo by sea or the charter of ships on a voyage or time charter basis. Leasing businesses could be transacted via conventional means or in accordance with Shariah principles.
Professional Leasing Asset Management
Asset leasing provides businesses with flexibility and access to essential equipment without the need for outright purchase. The role of leasing asset management services play a crucial role in overseeing the lifecycle of leased assets, offering diverse leasing options while adhering to local laws.
As the one of the largest leasing companies in Labuan, we are able to make favorable arrangements especially in leasing requirements for industries like oil and gas, airlines, freight or any other large corporations.
LEASING
- PAID UP CAPITAL
Maintain sufficient paid up capital - LICENSE ANNUAL FEE
USD20,000 - CORPORATE TAX
3% from audited net profit with substance
FAQ
The asset being leased must have a minimum value of USD 1 million.
Companies must maintain sufficient paid-up capital to meet their operational needs. While there is no specific amount mentioned, it should be enough to support the leasing business.
The annual license fee for operating under the Labuan Leasing License is USD 20,000.
Companies are subject to a 3% corporate tax on their audited net profits, provided they meet the substance requirements.
To qualify for the 3% tax rate, the company must demonstrate substance by maintaining an operational presence in Labuan or Malaysia. This typically includes having local employees, a physical office, and conducting core activities in the region.
Yes, the assets leased must be high-value items such as helicopters, aircraft, vessels, or submarines, with a minimum value of USD 1 million.
