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Foreign Tax Relief
Commonwealth Income Tax
Relief may be obtained on income arising from Commonwealth countries that provide reciprocal relief. The maximum relief cannot exceed half of the Brunei Darussalam rate and it applies to both resident and non-resident companies.
Investment Incentives Order, 2011
This Order was introduced to encourage the establishment and development of industrial and other economic enterprises in Brunei Darussalam and also to attract local and foreign investors to invest in Brunei Darussalam.
Tax Treaties
Avoidance of Double Taxation Agreement
The Government of Brunei Darussalam has signed Avoidance of Double Taxation Agreements (DTA) with the following countries:
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United Kingdom
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Republic of Indonesia
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Republic of Singapore
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People's Republic of China
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Socialist Republic of Vietnam
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Kingdom of Bahrain
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Sultanate of Oman
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Japan
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Islamic Republic of Pakistan
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Malaysia
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Hong Kong Special Administrative Region
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Lao People's Democratic Republic
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Kingdom of Kuwait
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Republic of Tajikistan
The DTA serves to lessen the burden of tax on companies when operating in Brunei Darussalam and the other signatory country.
Bilateral Investment Treaty
In addition to DTA, Brunei Darussalam has also signed Bilateral Investment Treaty (BIT) which serves to protect investors and investments of both signatory countries. This includes:
Multilateral Investment Treaty
Brunei Darussalam is also signatory to the ASEAN Agreement on the Protection and Promotion of Investment with all ASEAN countries in 1986. The new ASEAN member countries acceded to the Agreement when they joined ASEAN. In addition, the Goverment of Brunei Darussalam has also signed the Agreement on the ASEAN Investment Area.
Stamp Duty
Stamp duties are levied on a variety of documents. Certain types of documents attract an ad-valorem duty, whereas with other documents the duty varies with the nature of the documents.
Income (Petroleum) Tax
Profit of companies engaged in the exploration and production of oil and gas, will be taxed at the rate of 55%.
Property Tax
Properties Under commercial use are subjected to property tax based on the estimated value of the property. The quantum is decided by the local municipal board.
Import Duty
Dutiable goods imported to Brunei Darussalam are subject to Customs Import Duties Order 2007. Most import duties are imposed based on Ad Valorem rate (by percentage of price) and only some taxes are based on specific rate. However, Brunei does not impose duties on exported goods with the intention of promoting local entrepreneurship.
For further Information on taxation, please visit the Ministry of Finance website at www.mof.gov.bn or contact:
Revenue Section
Ministry of Finance
Level 1 of Island Block,
Ministry of Finance Building,
Commonwealth Drive,
Brunei Darussalam BB3910
Email: revenue@mof.gov.bn
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