4.50° N · 114.70° E
Brunei Tax Guide
AsiaLast verified September 2026Exempt system
- Top income tax
- 0%
- Capital gains
- 0%
- Corporate
- 18.5%
- VAT / GST
- 0%
- Residency test
- 183 days
No personal income tax
In short
- Brunei offers zero personal income tax, very low crime and a quiet life for those posted there by an employer.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: There is no independent residency route, nightlife is non-existent, alcohol is banned, and Sharia penal law applies.
Verified September 2026 · 3 sources
Recent changes
No changes logged since the last full verification.
Full change logBest 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 Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
No capital gains tax
Wealth & Inheritance
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 rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- Zero personal tax
- No VAT
- Pioneer-status corporate holidays
Beyond tax
Living in Brunei
Brunei offers zero personal income tax, very low crime and a quiet life for those posted there by an employer.
- Expat hub
- Bandar Seri Begawan
- Monthly budget
- ~$2,200
- Climate
- Tropical, 27°C
- Time zone
- UTC+8
- Tax100
- Cost of living$$
- Safety85
- Healthcare72
- English75
- Internet110 Mbps
- Warm climate100
- Residency access10
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Employment passSponsorship by a Brunei employer
Watch out: There is no independent residency route, nightlife is non-existent, alcohol is banned, and Sharia penal law applies.
See how Brunei ranks for remote workers, retirees and familiesData Sources
Last verified: September 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in Brunei?
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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?
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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?
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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?
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No, Brunei does not have a wealth tax. No wealth tax
What is the corporate tax rate in Brunei?
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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.
Is there capital gains tax in Brunei?
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Tax Atlas records a capital gains tax rate of 0% for Brunei. No capital gains tax. Verify your situation with a qualified adviser.
Does Brunei have an inheritance tax?
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No, Brunei does not levy an inheritance or estate tax according to the data. No inheritance or estate tax.
What is the VAT or sales tax rate in Brunei?
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The standard VAT / GST rate in Brunei is 0%. No VAT, GST or sales tax.
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.
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