Brunei: Domestic Corporate Taxation
Scope of Corporate Tax
This page was last updated on 3 June 2019.
A company, whether incorporated locally or overseas, is deemed resident in Brunei for tax purposes if the control and management of its business is exercised in Brunei. The control and management of a company is normally regarded as resident in Brunei if, among other things, its directors' meetings are held in Brunei.
In 2019, companies are subject to 18.5% 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
- Rents, royalties, premiums, and any other profits arising from properties.
Any company that has an annual revenue of less than BN$1 million is exempt from corporate tax. 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.