Brunei Darussalam

Corporate - Tax credits and incentives

Last reviewed - 09 June 2025

Tax incentives are implemented to alleviate the tax burden through tax thresholds, further deductions in addition to the allowable expenses, and tax credits. These incentives can be applied against the tax payable for the applicable assessment year.

Tax scheme for newly incorporated companies

In Brunei, newly incorporated companies are granted an exemption for the first BND 100,000 of their chargeable income for the first three consecutive years of assessment.

This incentive aims to ease the tax burden of start-up or newly incorporated company and helps them with their cash flow.

Further deduction for contribution to Employee Trust Fund

In addition to the basic deduction for TAP contributions, an additional deduction is granted for employer contributions to the TAP, emphasising the role of these contributions in enhancing employees' financial welfare. These further deductions serve as an incentive for employers to support their employees' retirement savings, beyond the standard tax benefits.

Further deduction for payment of salary on account of maternity leave

Employers can claim a further tax deduction for salaries paid to female employees on maternity leave, in addition to standard deductions. This additional deduction is capped at the equivalent of 15 weeks of the employee's salary.

Further deduction for expenses relating to approved trade fairs, exhibitions, or trade missions or to maintenance of overseas trade office

Brunei grants additional tax deductions to approved resident companies for expenses incurred related to promoting the export of goods or services. These deductions apply to expenses associated with participating in or maintaining approved local and overseas trade fairs, exhibitions, trade missions, trade offices, and promotional activities, particularly targeting markets outside Brunei.

Further deduction for export market development expenditure and certain advertising expenses

Brunei provides additional tax deductions for approved resident companies that incur export market development or advertising expenses for promoting the export of locally manufactured goods, services provided overseas, or services connected to a master franchise or intellectual property (IP) licence used internationally.

Further deduction for expenditure on R&D project

If a person or business incurs expenses for an approved R&D project related to their trade or business, either directly or through an R&D company, they may be eligible for an additional tax deduction on those expenses.

Tax credit for contribution to Employee Trust Fund

When an employer contributes to the Employee Trust Fund, the company may claim a tax credit equivalent to 10% of the additional contribution that exceeds their previous year's contribution to reduce their tax liability.

Tax credit on salaries paid to new employees

A provision allows employers in Brunei to claim a tax credit of 50% on salaries paid to new employees, subject to certain conditions. To qualify, the employee must be a citizen or permanent resident with a gross salary not exceeding BND 3,000 per month, and the employer must make contributions to the Employee Trust Fund. This tax credit can be utilised for the first 36 months of continuous employment. Additionally, a ‘new employee’ is defined as someone who was unemployed for at least a year prior to being hired.