The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    INTERVIEWYim Si-wan went extra mile to portray legendary athlete in 'Road to Boston'

  • 3

    S. Korea to stage massive military parade as tensions with North remain high

  • 5

    China's 'batwoman' scientist warns another coronavirus outbreak is 'highly likely'

  • 7

    Seoul, Beijing try to mend fences as Russia and N. Korea grow closer

  • 9

    Tanghulu captures hearts of Korean millennials and Gen Z

  • 11

    Korea, Saudi Arabia celebrate 93rd Saudi National Day, vow stronger cooperation

  • 13

    The ethical issues of AI: fighting the right battles

  • 15

    Low growth becomes new normal for Korean economy

  • 17

    LG Chem to build LFP cathode plant with Huayou in Morocco

  • 19

    An American high school experience in Seoul

  • 2

    Samsung, SK relieved by revised chip restrictions on China

  • 4

    K-pop group Kingdom recalls album cover resembling Quran

  • 6

    BTS' Jungkook to drop 2nd solo single '3D'

  • 8

    4 in 10 Koreans experience overdue wages: survey

  • 10

    Patients, doctors at loggerheads as operating room CCTV footage made mandatory

  • 12

    PHOTOSHarvest season arrives

  • 14

    Lee Jae-myung's possible arrest looms over main opposition party

  • 16

    Mirae Asset Global Investments' AUM reaches $219 bil.

  • 18

    Bears of Joseon part 2: Behind bars

  • 20

    Russian FM to visit Pyongyang next month as follow-up to Kim-Putin summit

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Tue, September 26, 2023 | 21:27
Business
Malaysia asked to drop Labuan from tax treaty
Posted : 2010-08-11 19:48
Updated : 2010-08-11 19:48
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
By Kim Jae-won

The Korean government is moving to exclude Labuan from a tax treaty with Malaysia as part of efforts to prevent any attempts to evade taxes through the island, which is well known as a tax haven for global investors.

Seoul and Kuala Lumpur are currently having talks in Seoul to modify their bilateral tax treaty, which was established in 1983.
“We have asked Malaysia to exclude Labuan from the Korea-Malaysia Tax Treaty,” a high ranking official of the National Tax Service (NTS), said on condition of anonymity.

“Malaysia has declined our request for the last a few years, but this time we may get a nod from the country.”

“Nothing has been changed in the treaty, so it does not reflect changed reality,” an official of the Ministry of Strategy and Finance, said. “We will ask Malaysia to exclude Labuan from our tax treaty to crackdown on tax evasion through the region.”

Seoul said that this time Malaysia may accept Korea’s suggestion due to changed circumstances.

“Nowadays international circumstances for the tax haven changed a lot. The OECD urges tax havens to follow international taxation rules, and promises to crack down on illegal cases,” the high-ranking official of the NTS said.

“Malaysia already excluded Labuan from tax treaties with Japan and the U.K. So, Kuala Lumpur may have no choice but to accept our request if we ask for the same treatment.”

Many foreign companies have used the island for tax evasion. According to NTS officials, New Bridge Capital, the U.S. private equity firm, bought the Korea First Bank (KFB), the predecessor to SC First, during the currency crisis in Korea in 1998. New Bridge bought KFB through a paper firm set up in Labuan, Malaysia, which has a treaty with Korea to avoid double taxation.

According to the Financial Supervisory Service (FSS), Malaysians invested a total of 964.8 billion won in the local stock market in 2009. They also spent 2 trillion won buying local bonds in the same period. The FSS said 95 percent of those investments were based on Labuan, and a significant portion of those investments came from paper companies, which aim to evade taxes.

Emailshosta@koreatimes.co.kr Article ListMore articles by this reporter
 
miguel
wooribank
Top 10 Stories
14 in 10 Koreans experience overdue wages: survey 4 in 10 Koreans experience overdue wages: survey
2Tanghulu captures hearts of Korean millennials and Gen Z Tanghulu captures hearts of Korean millennials and Gen Z
3[PHOTOS] Harvest season arrives PHOTOSHarvest season arrives
4Korea has world's highest senior poverty rate: data Korea has world's highest senior poverty rate: data
5K-pop fans rally in Seoul against luxury brands' failure on climate action K-pop fans rally in Seoul against luxury brands' failure on climate action
6Korean gov't faces international criticism for R&D budget cuts Korean gov't faces international criticism for R&D budget cuts
7LG Uplus, Hanwha develop ceiling-mounted EV charging system LG Uplus, Hanwha develop ceiling-mounted EV charging system
8[EXCLUSIVE] Lawmakers to submit resolution urging China to free N. Korean escapees EXCLUSIVELawmakers to submit resolution urging China to free N. Korean escapees
9SK earthon begins crude oil production in South China Sea SK earthon begins crude oil production in South China Sea
10Main opposition chief in showdown with prosecutors over arrest Main opposition chief in showdown with prosecutors over arrest
Top 5 Entertainment News
1K-pop group Kingdom recalls album cover resembling Quran K-pop group Kingdom recalls album cover resembling Quran
2BTS' Jungkook to drop 2nd solo single '3D' BTS' Jungkook to drop 2nd solo single '3D'
3Cho Seong-jin celebrates 140-year ties between Korea, UK Cho Seong-jin celebrates 140-year ties between Korea, UK
4[INTERVIEW] ONEUS returns as 'mermaid prince' INTERVIEWONEUS returns as 'mermaid prince'
5Kep1er unveils 'Magic Hour' with fresh perspective on love Kep1er unveils 'Magic Hour' with fresh perspective on love
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group