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Brunei Tax Guide

Asia
Last verified September 2026
Sources & verification

Figures on this page were last verified against the cited sources in September 2026. Always check official sources before making a relocation or incorporation decision.

Best for

  • Zero personal tax

    0% on personal income — among the simplest tax outcomes globally.

  • Zero capital gains

    No CGT on investment, property, or crypto disposals (subject to "investor" classification).

  • Foreign income exempt

    Exempt system — overseas income generally outside the local tax net.

  • No wealth tax

    No annual tax on net worth or assets.

  • No inheritance tax

    Estate and lifetime transfers not subject to inheritance tax.

Personal Tax Score
100/100
Extremely Tax Friendly
Business Tax Score
70/100
Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days for tax residency, though the distinction carries no personal income tax consequence

Income Tax Rates

Top Marginal Rate
0%
Structure
No personal income tax

Foreign Income Treatment

System
Exempt
Details
No tax on personal income of any kind or source

Investment Income

Capital Gains
0%
Dividends
0%
Interest
0%

No capital gains tax


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
No - No inheritance or estate tax

Practical Notes

Oil-funded sultanate with zero personal tax and no VAT. Immigration is the barrier, not tax: permanent residency and citizenship are rarely granted to foreigners; most expatriates are on employment passes. Sharia law applies alongside civil law. Employees contribute 8.5% to the SPK national retirement scheme (employer 8.5%).

Business & Corporate Tax

Corporate Income Tax

Headline Rate
18.5%
Effective Rate Note
18.5% flat. Threshold relief: first BND 100,000 of chargeable income taxed at 25% of the rate, next BND 150,000 at 50%. Petroleum companies taxed at 55% under separate legislation.
Free Zone / Incentives
No general free zone regime; Brunei Economic Development Board offers pioneer-status tax holidays of 5-11 years for approved industries.

Withholding Taxes

Dividends
0%
Interest
2.5%
Royalties
10%

VAT / GST

Rate
0%
Note
No VAT, GST or sales tax

Compliance & Substance

Substance Requirements
Low - but local shareholding is expected in most sectors and licences are discretionary
Compliance Friction
Low tax compliance; high immigration and licensing friction

Notable Regimes

  • Zero personal tax
  • No VAT
  • Pioneer-status corporate holidays

Data Sources

Last verified: September 2026. Always check official sources before making a decision.

FAQ

What is the personal income tax rate in Brunei?

Brunei has a top personal income tax rate of 0%. The tax structure is: No personal income tax. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Brunei?

Brunei uses a exempt system for foreign income. No tax on personal income of any kind or source

What are the residency requirements for Brunei?

Tax residency in Brunei generally requires 183 days of physical presence. 183 days for tax residency, though the distinction carries no personal income tax consequence. Always verify current rules with official sources.

Is there a wealth tax in Brunei?

No, Brunei does not have a wealth tax. No wealth tax

What is the corporate tax rate in Brunei?

The corporate tax rate in Brunei is 18.5%. 18.5% flat. Threshold relief: first BND 100,000 of chargeable income taxed at 25% of the rate, next BND 150,000 at 50%. Petroleum companies taxed at 55% under separate legislation.

US citizen moving to Brunei? Read this first.

Brunei has 0% personal income tax, so the US-citizen math is dominated by FEIE plus self-employment tax.

  • •FEIE (Form 2555) shields ~$130k of earned income in 2026. Income above that has no Foreign Tax Credit to offset US tax (no foreign tax was paid), so it's taxed at regular US rates.
  • •Self-employment tax (15.3%) is owed in full — Brunei has no totalization agreement with the US, so there is no SE-tax exemption.
  • •Investment income (dividends, capital gains, interest) is taxed at standard US rates. No FTC because no Brunei tax was paid.
  • •Brunei residency requires 183 days. State residency severance from a sticky state (CA, NY, VA, NM, SC) before international move is the highest-stakes practical step.
Read the full US-citizen moving-abroad guide

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