To aid the development of Micro, Small and Medium Enterprises (MSMEs), companies with gross sales or turnover not exceeding B$1 million are exempted from corporate tax or charged with 0% corporate tax. From the Year of Assessment 2015 onwards, larger companies have enjoyed a competitive Corporate Income Tax rate of 18.5%.
Scope of Income Tax
- A company resident in Brunei Darussalam is liable to income tax on its income derived from or accrued in Brunei Darussalam, or received from overseas
- A non-resident company is only taxed on its income arising in Brunei Darussalam
- Companies are subject to tax on the following types of income:
- Gains of profits from any trade, business or vocation
- Dividends received from companies not previously assessed for tax in Brunei Darussalam
- Interest and discounts
- Rents, royalties, premiums and any other profits arising from properties
- There is no Capital Gains Tax. However, where the Collector of Income Tax can establish that the gains form part of the normal trading activities, they become taxable as revenue gains.
|25% of Chargeable Income||For the first B$100,000||18.5%|
|50% of Chargeable Income||For the next B$150,000||18.5%|
|100% of Chargeable Income||For the amount above B$250,000||18.5%|
- Financial period from 1st January 2015 to 31st December 2014
- For newly incorporate companies in Brunei Darussalam, exemption is granted for the first B$100,000 of the Chargeable Income of the company during the first 3 Years of Assessment. The Chargeable Income above B$100,000 is charged with tax at the above applicable rate
Tax on Exports
- A flat tax rate of 1% has been introduced to encourage export activities in respect of approved types of export. Under this treatment, total turnover of the exporter is treated as exports, if the local sales do not exceed 20% of the total turnover.