Brunei |
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Tax rate |
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| Corporate in Brunei is taxed at the rate of 22% or 55%. Brunei does not currently levy any income tax on individuals and there is no sales tax or value added tax (VAT). |
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Brunei Taxation in General |
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- No Personal Income Tax
- There are no social security taxes in Brunei. However, all citizens must contribute 5% of their salary to a state-managed provident fund.
- Stamp duties are levied on a variety of documents in Brunei.
- Properties under commercial use are subjected to property tax.
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Corporate Tax |
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| The corporate tax rate in Brunei is at 22%. |
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| Year |
Tax Rate |
| 2010 |
3.5% |
| 2011 |
22% |
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Petroleum Tax:Income from petroleum operations is taxable under the Income Tax (Petroleum) Act 1963. This legislation follows the general pattern of most Middle East oil-producing countries. The petroleum tax rate in Brunei is a fixed rate of 55%. |
Brunei Tax Exemptions: |
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Withholding tax |
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| Effective from January 1, 2008, withholding tax shall be payable at the following rates: |
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| Types of taxable income |
Tax Rate |
| Interest, commission, fee or other payment in connection with any loan or indebtedness |
15% |
| Royalty or payments for the use of movable properties |
10% |
| Payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information |
10% |
| Technical assistance and Service Fee |
20% |
| Management Fee |
20% |
| Rent or other payments for the use of movable property |
10% |
| Nonresident Directors' Remuneration |
20% |
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| Brunei does not impose any withholding tax on dividend and there is no Capital Gains Tax. |
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Tax Incentives for SMEs |
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| Tax and investment privileges are provided to SMEs. The following types of business are eligible for the tax exemption; imported raw materials and machinery for SMEs, food industry for the export and domestic market and industries that use marine resources. |
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