Those who spend 183 days or more of the tax year living in Brunei, then that person is officially deemed to be resident. A non-resident may be required to pay taxes, but it depends on the circumstances. For example, a director of a company who is not resident will be taxed on earnings from the Brunei based business at a rate of 20%. The tax year in Brunei is the same as the calendar year but there is no need to file a tax return.

Brunei has no personal income tax for individuals, which makes it attractive for expats who want to earn money for their families at home. However, there are other forms of taxation to be taken into consideration and much of the country’s revenue comes from taxes that are applied to corporations.

Stamp duty is applicable on different types of transactions. There are two different types of stamp duty. The first is known as ‘ad valorem’ and is applied to property transfers such as securities, tenancies and leases and share certificates. The second type is ‘fixed duties’ and applies to insurance policies and other legal documents. These types of transactions are normally carried out with the help of a lawyer, who will be able to advise you if you need to make payments on them. The stamp duty would normally be included in the cost of the transaction. Rates on stamp duty are variable according to the transaction and the amount of monies involved.

Estate duty is payable in Brunei and is applied to all property that cannot be moved following the death of the owner. This is the equivalent of inheritance tax in other countries. It is only payable on amounts that exceed B$2 million and the rate is 3%. There is a building tax of 12% on properties but this is limited to those that are situated in Bandar Seri Begawan. These payments would be made to the local authority.

There is no capital gains tax in Brunei and no wealth taxes. The country has become something of a tax haven for the wealthy and these benefits are added to by the lack of VAT or sales tax. Some items which are imported into the country have duties added by the authorities which means that certain things may be expensive as this is then passed on to the customer, but this is the cost of importing rather than a tax. Essential items such as basic foodstuffs are exempt from import duties.

There are no gift or payroll taxes in the country and if you have income from shares or renting out properties you will find that these are not taxed either. The lack of taxation means that workers can enjoy a fairly high standard of living.

There are some deductions from workers salaries. There is a 5% deduction for the Employees Trust Fund as well as pension contributions. These benefits are designed to look after workers if they should find themselves without employment. This deduction is carried out by the employer and the worker does not need to do anything for this. The employer will also have to contribute the same amount on behalf of the worker.

If you are unsure what your tax liability would be if you moved to Brunei, it is a good idea to check with both your local tax office and the Revenue Division of the Ministry of Finance in the country itself. There are a number of tax treaties in place which are designed to prevent people paying tax on the same income in more than one country. It also means that you may be taxed by your home country on any income that you earn in Brunei, if you are still considered to be a resident of that country.

Those who have an income which originates in another country, even if they are resident in Brunei, may still be expected to pay tax on it at the source. This is due to the fact that Brunei will not tax this money. If you are considered to be non-resident in Brunei, then your tax liability rests in the country of your residency.