Brunei Corporate Income Tax

Corporate income tax rates and incentives

Brunei's standard corporate income tax rate is 18.5% for resident and non-resident companies. Generous start-up and MSME reliefs apply, and oil and gas upstream profits are taxed at a much higher special rate. Figures should be confirmed against the current Income Tax Act and MoFE guidance.

• Standard corporate income tax rate — 18.5% % (Income Tax Act (Cap. 35))
• Threshold relief on first BND 100,000 of chargeable income — First BND 100,000 effectively taxed on 25% of chargeable income (i.e. reduced effective rate) BND ((approx — confirm mechanism)) (Income Tax Act (Cap. 35))
• Threshold relief on next BND 150,000 of chargeable income — Next BND 150,000 effectively taxed on 50% of chargeable income BND ((approx — confirm mechanism)) (Income Tax Act (Cap. 35))
• Chargeable income above BND 250,000 — Taxed at the full 18.5% statutory rate % (Income Tax Act (Cap. 35))
• MSME turnover exemption — Companies with gross sales / turnover not exceeding BND 1,000,000 are exempt from corporate income tax BND (Income Tax Act (Cap. 35))
• Newly incorporated company exemption — First BND 100,000 of chargeable income exempt for the first three consecutive years of assessment BND (Income Tax Act (Cap. 35))
• Oil and gas exploration and production rate — 55% % (Income Tax (Petroleum) Act (Cap. 119))
• Tax base — Chargeable income = Brunei-source income and gains of an income nature, less allowable deductions and capital allowances (Income Tax Act (Cap. 35))
• Withholding tax on dividends — 0% — no withholding tax on dividends paid to non-residents % (Income Tax Act (Cap. 35))
• Withholding tax on interest to non-residents — 2.5% % (Income Tax Act (Cap. 35))
• Withholding tax on royalties to non-residents — 10% % (Income Tax Act (Cap. 35))
• Withholding tax on technical fees / management fees to non-residents — 10% % (Income Tax Act (Cap. 35))
• Withholding tax remittance deadline — Within 14 days of payment, remitted to the Collector of Income Tax (Income Tax Act (Cap. 35))
• Estimated Chargeable Income (ECI) deadline — Within 3 months after the end of the accounting period (Income Tax Act (Cap. 35))
• Corporate return filing and payment deadline — Return filed and tax paid by 30 June of the year of assessment (Income Tax Act (Cap. 35))
• Late payment penalty — 5% penalty on unpaid tax, plus an additional 1% per month if unpaid after 60 days, capped at 12% additional ((approx — confirm)) (Income Tax Act (Cap. 35))