Property Tax
The property tax in Brunei is known as the Annual Assessment Tax (AAT) and is levied on all properties in the country. The tax is calculated based on the assessed value of the property and is payable annually. The AAT is calculated as a percentage of the assessed value, with the rate ranging from 0.2% to 2%. The exact rate is determined by the Brunei government.
Capital Gains Tax (CGT)
There is no Capital Gains Tax (CGT) in Brunei. However, non-citizens and non-residents who sell a property in Brunei are subject to a 15% withholding tax on the sale price. This tax is imposed to ensure that non-citizens and non-residents pay their fair share of taxes on their property transactions.
Inheritance Tax
There is no Inheritance Tax in Brunei.
Gift Tax
There is no Gift Tax in Brunei.
Tax on Property Income
There is no separate tax on property income in Brunei. However, rental income from a property is considered taxable income and is subject to personal income tax. Non-citizens and non-residents who receive rental income from a property in Brunei are subject to a 15% withholding tax on the rental income.
Tax Advantages in Buying a House in Brunei
Brunei offers several tax advantages for property owners. The country has no Capital Gains Tax, Inheritance Tax, or Gift Tax, making it an attractive location for property investment. Additionally, rental income from a property is considered taxable income, but is subject to a relatively low 15% withholding tax for non-citizens and non-residents.
Another tax advantage for property owners in Brunei is the low property tax rate. The Annual Assessment Tax (AAT) is levied on all properties in the country and is calculated based on the assessed value of the property. The rate ranges from 0.2% to 2%, making it a relatively low tax burden for property owners.
In conclusion, Brunei offers several tax advantages for property owners, including no Capital Gains Tax, Inheritance Tax, or Gift Tax. Additionally, the low property tax rate and relatively low withholding tax on rental income make it an attractive location for property investment.