Brunei - Mixed (Common and Sharia law)
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Brunei taxes

If you are wanting to do business in Brunei, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC (SDN BHD) which is the most common legal entity in Brunei.

Brunei taxes corporate income accrued in or derived from Brunei or received in Brunei from outside Brunei. The prevailing standard rate for offshore income received in Brunei, from our research, but seek professional advice, is 18.5%. Companies with revenues under BND 1m are exempted from CIT. The standard corporation tax rate is 18.5%. Under certain conditions, companies dealing with exports are subjected to a fixed rate CIT rate of 1%. Companies engaged in oil and gas industries are taxed at a flat rate of 55%. Brunei ranks 63rd overall with regards to corp. taxation rate internationally.

There is no value-added tax or sales tax in Brunei, that ranks the country as 1st overall with regards to VAT globally. In terms of other taxation, an employer will contribute 8.50% to the equivalent of a social security fund and an employee will contribute 8.50%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 27hours. Contributing to this is the number of yearly labor tax payments, which is 5 in BN.

Thin capitalisation mandates aren't in effect. This refers to any type of restrictions on given company with respect todebt-to-asset ratios. Dividens received from a company subject to tax in Brunei are exempted. Dividends from foreign entities are considered taxable income. Dividends are distributions of earnings of a legal entity, determined by the board, to a particular class of shareholders. Dividends can be issued as cash payments, shares of stock, or other property. Capital Gains are not subject to taxation in Brunei. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

Dividends are not subject to withholding tax in Brunei. This means that dividend payments to non-residents are not taxed in Brunei. The interest withholding tax rate is estimated at 15%. This should be interpreted usually that the tax authorities expects companies to automatically withhold 15% of payments offshore on interests. The royalties withholding tax rate is 10%. This should be interpreted usually that the taxman expects LLC (SDN BHD)'s to automatically withhold 10% of payments abroad for royalty payments. Payments to non-residents connected to a P.E. in Brunei are exempted of withholding taxes.
There is no known tax on wealth in Brunei. There are no known inheritance, transfer and real property taxes in Brunei. There are no widely used credits for innovation spend that include breaks on taxation in BN.

The above is not tax or legal advice for your individual personal tax obligations. We are able to to help you to find an accountant in Brunei who can give you an answer. Contact us today. Click incorporate now if you are in a hurry, or press the free consultation button above.

It takes approximately 66 hours to file and prepare documents for a Brunei Mixed (Common and Sharia law).
The corporate tax is approximately 18.5% which is 65 in the world.

Owners of a company in Brunei are allowed to carry back a loss and may be allowed to carry forward a loss for 6 years.

The vat rate in Brunei is 0% which ranks 1 in the world.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
26Tax treaties
18.5%Offshore Tax
18.5%Corp rate
1Loss carryback years
66Corporate time
0%VAT rate
0%Capital gains
2018AEOI planned

Read this to learn about incorporating a company in

We can help you form a company in Brunei. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in Brunei, which is required by law.

Brunei Tax Treaties

CountryTypeDate signed
Faroe Islands
DTC 2009-04-13
DTC 2009-12-25
DTC 2005-08-19
United Arab Emirates
DTC 2013-05-21
DTC 2000-02-27
DTC 2010-04-03
United Kingdom
DTC 1950-12-08
South Korea
DTC 2014-12-09
DTC 2009-06-28
DTC 2008-01-14
Japan DTC 2009-01-20
DTC 2009-08-05
DTC 2004-09-21
Hong Kong
DTC 2010-07-19
DTC 2006-04-22
DTC 2007-08-16

Country Info

National Flag of
Nation of Brunei, Abode Damai (msa)
Area Code
Bandar Seri Begawan
South-Eastern Asia
Native Languages