Starting a business in
🇧🇳Brunei
Checked November 9, 2026 · How we score
Corporate tax
18.5%
Top income tax
0%
Setup from
$1,500
all-in, first year
Time to form
14 days
visit usually needed
What is the corporate tax rate in Brunei?
The headline corporate tax rate in Brunei is 18.5% in 2026, and there is no personal income tax. 18.5% on corporate profit, with partial exemption on the first BND 100,000 (75% exempt on the first BND 100,000 and 50% on the next BND 150,000 of chargeable income). Oil and gas companies pay a separate 55% petroleum rate. Pioneer status incentives can cut tax to zero for up to 11 years.
| Corporate income tax | 18.5% 18.5% on corporate profit, with partial exemption on the first BND 100,000 (75% exempt on the first BND 100,000 and 50% on the next BND 150,000 of chargeable income). Oil and gas companies pay a separate 55% petroleum rate. Pioneer status incentives can cut tax to zero for up to 11 years. |
|---|---|
| Personal income tax (top) | 0% No personal income tax on salaries, dividends, interest or capital gains. Citizens and permanent residents pay to the Employees Trust Fund and Supplemental Contributory Pension schemes. |
| Tax system | No personal income tax |
| Capital gains tax | 0%No capital gains tax. |
| Dividend withholding (non-residents) | None |
| VAT / GST | None |
| Social security | No VAT or sales tax. Employers pay 8.5% TAP and 3.5% SCP contributions only for citizens and permanent residents. |
Forming a company in Brunei
| Usual entity | Sdn Bhd (private limited company) |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $1,500–$4,000 |
| Annual running cost | $2,000–$5,000 |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
Residence is almost always tied to employment or a company-sponsored work pass. Brunei does not offer a golden visa or a digital nomad visa, and permanent residence is extremely restricted.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 5/5 (1 = easiest) |
Taxes for individuals living in Brunei
Brunei has no personal income tax, so foreign income of individuals is not taxed.
| Foreign income of residents | Not taxed |
|---|---|
| Income tax structure | Progressive rates |
| Inheritance / estate tax | 0%No inheritance, estate or gift tax; Sharia succession applies to Muslims. |
| Wealth tax | No |
| Annual property tax on your home | No |
| Exit tax when you leave | No |
| When you become tax resident | Residency matters mainly for immigration: expatriates stay on employment passes of up to two years, and 183 days is the usual test for tax residency. |
Special tax regimes
Pioneer industry and service incentives
Qualifying new businesses can get tax relief for up to 11 years (up to 20 years for some projects) from the Brunei Economic Development Board.
Partial exemption for small companies
75% of the first BND 100,000 and 50% of the next BND 150,000 of chargeable income are exempt from the 18.5% rate.
Pros and cons
Why founders pick Brunei
- No personal income tax, capital gains tax, wealth tax or VAT
- 18.5% corporate rate with partial exemptions
- Pioneer status tax holidays
- Stable monarchy and very low crime
Watch out for
- Tiny domestic market of about 450,000 people
- Resident director and local office required
- Almost no pathway to residency outside employment
- Strict Sharia-influenced laws (alcohol ban)
- Slower, paper-heavy bureaucracy
Best for: Expatriate professionals in the oil and gas sector · Companies serving the Brunei government and ASEAN · Investors using Pioneer status incentives
Brunei: common questions
Is Brunei a tax haven?
Not usually, but it is a low-tax option for some founders: no personal income tax. Companies pay 18.5% corporate tax and the top personal income tax rate is 0%.
What is the corporate tax rate in Brunei?
The corporate tax rate in Brunei is 18.5% on chargeable profit, with a partial exemption on the first BND 250,000 of income for small companies. Oil and gas companies pay a separate 55% petroleum profits tax.
Does Brunei have income tax?
No. Brunei has no personal income tax, no capital gains tax, no dividend withholding tax and no VAT. Citizens and permanent residents make mandatory contributions to pension and trust fund schemes.
How much does it cost to register a company in Brunei?
Expect USD 1,500–4,000 in the first year for a Sdn Bhd, including registration with the Registrar of Companies, a lawyer, a local registered office and a resident director. Setup takes about 2 weeks.
Can a foreigner own a company in Brunei?
Yes. Foreign ownership of up to 100% is allowed in most sectors, but the company needs at least one director ordinarily resident in Brunei and a local registered office.
Sources
- Brunei Darussalam Authority for Taxation
- Brunei Economic Development Board
- PwC Worldwide Tax Summaries – Brunei
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.