Tax In Brunei

A Contractor's Guide to Taxes : 

One of the most consistently challenging aspects of contracting in Brunei is complying with the country’s tax system. As well as paying tax in Brunei, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income: 

If you’re working in Brunei under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Brunei for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Brunei, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Brunei through PAYE is left with the prospect doing everything themselves.

Do you know much about Brunei Tax Law? Does Brunei have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Brunei can range from 0 to 15 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator: 

If you are a contractor and want a calculation on your tax and net retention in Brunei, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax : 

Contractors in Brunei are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Bruneian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Bruneian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Bruneian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax: 

We work with numerous umbrella companies in Brunei, many of whom are experts in tax and immigration laws. If you have any questions about tax in Brunei, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Bruneian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Brunei but without the overhead of directly dealing with the Bruneian tax authorities. Get in touch with us today for some reliable advice on tax in Brunei!

When Do You Need to Lodge Your Tax Return?: 
N/A
Tax Filing Deadline : 
N/A
Can you file it online? : 
Yes, https://www.stars.gov.bn/eServices/Public/Login.aspx
Currency: 
Brunei Dollar (BND)
Tax-free Threshold in: 
N/A
How long does it take to set up: 
12-13 days
How much does it cost: 
BND185
Is it easy? : 
Starting a Business Rank: 58/190 (Source: World Bank)
How to File Taxes in: 

Individual income earners are not required to file taxes in Brunei.

Companies can declare taxes via the Ministry of Finance Revenue Division’s e-filing portal, STARS.

Notes: 

Employment income is exempt from tax for both residents and non-residents.

Mandatory Contributions: All citizens and permanent residents must contribute 5% of their salary to the Employees’ Trust Fund (Tabung Amanah Perkerja) and 3.5% of their salary to the Supplemental Contributory Pension fund. These contributions are withheld from employment income.

Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 

You become a tax resident in Brunei when:

  • You are physically present in Brunei for at least 183 days in the income tax year; or

You are employed in Brunei (other than as a director of a company) for at least 183 days in the income tax year.

Am I taxed on my global income in: 

Employment income for both residents and non-residents, is not taxed in Brunei.

Client comment

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