Taxation Structure

Corporate Income Tax (CIT)-Brunei after Singapore is the most tax amicable country in the ASEAN region. The chart below depicts the comparative tax rates for the different countries in the ASEAN region. The Corporate Income Tax rate in Brunei is 18.5%. At 18.5%, the rate is well below the average for these 8 countries which lies at 22%. It is the second lowest after Singapore.

 

The corporate income tax rate is 18.5% and is charged on a threshold basis as follows:

  • 25% of the first BND 100,000 of assessable income is charged at 18.5%;
  • 50% of the next BND 150,000 of assessable income is charged at 18.5%; and
  • The full amount of the remaining assessable income is charged at 18.5%.

Petroleum income tax at 55% applies to petroleum operations of oil and gas companies. There is no tax on capital gains, no surtax and alternative minimum tax. Tax exemptions may be available for pioneer industry companies. Companies dealing with exports can opt to pay tax at a fixed rate of 1% on approved exports.

 

Personal Income Tax (PIT) – Brunei is a haven for individuals because they aren’t required to pay any tax on their personal incomes. This applicable to both residents and non-residents, thus it is a massive factor which can be taken into consideration by business individuals. Combined with the significantly low CIT, Brunei is one of the most tax amicable countries in the world.

 

There are no social security taxes in Brunei Darussalam. However, all citizens and permanent residents of Brunei Darussalam must contribute 5 percent of their salary to a State managed provident fund. The employer will have to also contribute the same amount for its employees to the provident fund.

 

In addition to the above, all citizens and permanent residents of Brunei Darussalam must also contribute 3.5 percent of their salary to a Supplemental Contributory Pension Scheme (SCP). The employer will have to also contribute the same amount for its employees to the Scheme.

 

For further details refer to : https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-bruneihighlights-2020.pdf

https://www.mofe.gov.bn/Divisions/income-tax.aspx

https://assets.kpmg/content/dam/kpmg/pdf/2016/08/country-tax-profile-brunei.pdf

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