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Brunei: Commercial Property

Commercial Property Taxation

Stamp duties are levied on a variety of documents. The duties are either ad valorem or fixed, depending on the nature of the documents.

Ad Valorem Duties apply to:

  • Instruments of transfer of property including marketable securities, shares of other companies and of non tangible property, benefits to legal rights and goodwill;
  • Instruments creating interests in property, for example Tenancies and Leases.

Since 2008, industrial buildings can be depreciated at 20% in the first year after construction, and 4% per annum thereafter. Balancing allowances or charges are made on disposal of the industrial building machinery or plant. These adjustments cover the shortfall or excess of the tax written down value as compare to the sale proceeds. Any balancing charge is limited to tax allowances previously granted, and any surplus is considered a capital gain and therefore does not become part of chargeable income. 

There is a 15% withholding tax on rents paid to non-residents.

There is a municipal property tax for commercial premises based on estimated valuation; rates vary.

 

 

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