The Korean Ministry of Finance and Economy declared Labuan, which is off the coast of Malaysia, a tax haven on June 30. The declaration means Korean investors using Labuan will not benefit from withholding tax reductions, that the Korea-Malaysia tax treaty made available, as of July 1 2006. When the Korean ministry said it would investigate treaty shopping in November 2005, taxpayers had feared that the ministry would name low-tax jurisdictions such as the Netherlands, Belgium, Luxembourg and Ireland as havens.
South Korea names Malaysian island as tax haven
