Uncovering the Secrets of Common Reporting Standard for Labuan Companies

Uncovering the Secrets of Common Reporting Standard for Labuan Companies

The Common Reporting Standard (CRS) initiative is a major step towards a globally coordinated approach towards the disclosure of income earned by both individuals and organisations. This standard sets out the money related records data that needs to be exchanged between financial institutions in cross jurisdictions, reporting on various types of transactions and standard due diligence process set by the Organisation for Economic Co-operation and Development (OECD), an international organisation that develops and monitors economic and social policies and trend.

Participation of Labuan IBFC in CRS:

The Labuan Business Activity Tax Act 1990 has been amended to give simple accesses and the sharing of data with other administrative and competent authorities. Malaysia has been helping out different countries in exchange of data under the various multilateral and respective agreements including the Double Tax Agreements signed by Malaysia with more than 75 countries.

Our QX Trust team, with over eight years of offshore experience and expertise, consults and assists our clients to comply with the Common Reporting Standards (CRS) in Labuan as part of its Global Information Reporting capabilities, which includes CRS classification, due diligence, and reporting procedures.

The OECD has put forward a global standard for the automatic exchange of financial accounting information annually. It covers:

  • How the information is reported?
  • What is the requirement for financial institutions to report?
  • Which account is required to report and due diligence procedures?

How can QX Trust help?

After the introduction of common reporting standards, the high net-worth investors using the Trust structure from various jurisdictions, may need to consider setting up their own Labuan private foundation as a vehicle to own 100% control over their assets.

CRS Reporting:

As per the CRS, organisations need to submit the information to the local tax authority. Our QX Trust team offers such service on behalf of our clients to prepare and send annual reports on the yearly reporting of accounts, along with the financial account information and personal information as per the CRS regulations.

Enhanced File Review:

The due diligence process is mandatory for existing accounts. QX Trust assists clients with any new classification wherever needed and recording the proper new CRS status within 90 days. Our team also helps in collecting the new self-certification form and required documentation as per the CRS regulation.

Produce a CRS Classification:

Majority of the entities need to determine whether they fall under the category of financial institutions. We assist clients in identifying the right CRS classification based on the CRS global standards.

On-Boarding CRS:

Whether it’s compiling or review offing the Anti-Money Laundering policies, our team is here to assist you in every step of the way. Our team determines whether any CRS information inconsistencies exist or not and help you by adequately informing and working on finding a solution for the same.

QX Trust is here to ensure that you tax-proof your offshore business venture in Labuan, Malaysia. To schedule a free consultation with our consultants, please reach us at +60 3 9212 6940 or write to us at consultant@qx-trust.com.