Brunei Darussalam

Income tax in Brunei is regulated by the Income Tax Act (Chapter 35) and the Income Tax (Petroleum) Act (Chapter 119) of Brunei's laws. Tax shall be imposed, assessed, and collected solely on the incomes of companies that are incorporated or registered under the Companies Act (Chapter 39) or any corresponding law in other jurisdictions. The provisions of the Act shall not apply to the incomes of any other individuals or entities.

Corporate income tax (CIT) policy and rates

CIT applies to income accruing in or derived from Brunei for both resident and non-resident companies.

Tax thresholds apply to the first 250,000 Brunei dollars (BND) of chargeable income, after which the remaining balance is subject to the applicable statutory tax rate. The calculation can be illustrated as follows:

The CIT rates are structured as follows:

• Resident companies:
  • Standard rate: The standard CIT rate for resident companies is 18.5%.

• Non-Resident Companies:
  • Standard rate: Non-resident companies (i.e. branch of a foreign company) operating in Brunei are generally subject to the same standard CIT rate of 18.5% on income derived from Brunei.

For newly incorporated companies, exemption is granted for the first BND 100,000 of the chargeable income during the first three consecutive years of assessment.

To aid the development of micro, small, and medium enterprises (MSMEs), companies with gross sales or turnover not exceeding BND 1 million are exempted from CIT.

Various additional incentives are available to attract locals and foreign investment, which may include tax exemptions or reduced tax rates for qualifying investments, especially in strategic industries like oil and gas, manufacturing, and tourism. See the Tax credits and incentives section for more information.

Simplified CIT rates table

Here is a simplified table summarising the CIT rates for quick reference:

Petroleum tax

Profit of companies engaged in the exploration and production of oil and gas are taxed at the rate of 55%.