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58 Borneo Bulletin Yearbook 2023
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. Meanwhile, a non-resident
company is only taxed on its income
arising in Brunei.
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; interest and discounts;
and rents, royalties, premiums and any
other profits arising from properties.
There is no Capital Gains Tax.
However, if the collector of income tax
can establish that the gains form part
of the normal trading activities, they
become taxable as revenue gains.
Corporate income tax in Brunei
Darussalam is 18.5 per cent, one
of the lowest in the region. To aid
the development of micro, small
and medium enterprises (MSMEs),
companies with gross sales or
turnover not exceeding BND1 million
are exempted from corporate tax.
Meanwhile, companies involved in the
exploration and production of oil and
gas receive a tax rate of 55 per cent.
Exemption is granted to newly
incorporated companies for the first
BND100,000 chargeable income
during the first three consecutive
years of assessment falling within
Favourable Tax System
or after year of assessment 2008.
Additionally, a tax threshold is granted
to both newly incorporated and
existing companies to reduce the tax
liabilities of SMEs.
Companies that have been granted
a pioneer certificate in certain
industries and products will receive
a tax relief period between five to 20
years, depending on the conditions.
Pioneer companies are exempt from
income tax, as well as import duties
on machinery and raw materials.
Unincorporated companies – sole
proprietorships or partnerships
registered as business names – are
not subject to income tax.
To encourage export activities in
respect of approved types of export,
a flat tax rate of one per cent has been
introduced. Under this treatment, total
turnover of the exporter is treated as
exports, if the local sales do not exceed
20 per cent of the total turnover.
The country does not levy any indirect
taxes such as value-added tax (VAT)
or other consumption-based taxes.
Propertiesforcommercialusearesubject
to property tax with rates determined by
the local municipal board.
The Revenue Division of the Ministry
of Finance and Economy (MoFE) is
in charge of Brunei Darussalam’s tax
administration. In 2012, the System
for Tax Administration and Revenue
Services (STARS) was officially rolled
out, a self-service online tax system
for taxpayers and tax professionals.
The online systems allow companies
to file income tax returns and pay
corporate income tax online, among
others. Registration can be made
online at .