Brunei: Domestic Corporate Taxation
Scope of Corporate Tax
A company, whether incorporated locally or overseas, is considered as resident in Brunei Darussalam for tax purposes if the control and management of its business is exercised in Brunei Darussalam. The control and management of a company is normally regarded as resident in Brunei Darussalam if, among other things, its Directors' meetings are held in Brunei Darussalam.
From 2012, companies are subject to 21% (previously 22%) 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; and
- 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.
A non-resident company is only taxed on its income arising in Brunei Darussalam.