Brunei Darussalam (BN) stands out in Southeast Asia for its unique approach to individual income taxation. This guide presents the key features of Brunei’s income tax framework as of 2025, with a clear focus on the official guidance and publicly available data.
Brunei’s Individual Income Tax in 2025: Key Facts
Brunei remains a tax haven for residents and expatriates alike. It offers an individual income tax regime that distinguishes it from most countries globally, and this carries obvious appeal for globally mobile professionals and business owners.
Income Tax Overview
| Assessment Basis | Tax Type | Rate (%) | Brackets | Surtaxes | Currency (BND) |
|---|---|---|---|---|---|
| Income | Flat | 0% | None | None | $BND |
As reflected in the table above, Brunei does not impose an individual income tax on salaries, wages, or most types of personal income. The rate is a full 0%—meaning there are no tax brackets, no progressive rates, and no surtaxes. The flat rate is universally applied (or rather, not applied at all), regardless of the amount or source of income.
Assessment and Structure
All income—whether from employment, business, or other personal sources—is exempt from personal income tax in Brunei for the year 2025. There are no tax brackets, and authorities have not implemented any minimum holding periods or differentiated tax treatment on capital or other forms of income at the individual level.
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No Surtaxes or Special Regimes
Consistent with its overall tax policy, Brunei also does not levy any additional surcharges, surtaxes, or supplemental individual taxes in 2025. There is no requirement to file an annual individual income tax return for residents or foreign individuals, as there is no liability to settle or declare.
Comparative Table: Brunei Income Tax Regime 2025
| Year | Individual Income Tax Rate (%) | Brackets | Surtaxes | Reporting Obligation |
|---|---|---|---|---|
| 2025 | 0% | None | None | No annual filing required |
What Is Not Taxed?
Brunei’s personal tax framework exempts the following from individual income tax:
- Salaries and wages
- Business profits (individual/minor partnerships)
- Dividends and investment earnings
- Interest and capital gains
However, it is essential to note that corporations and other legal entities are subject to taxation on their profits. For more detailed corporate tax information, consult the official Brunei Ministry of Finance website at www.mofe.gov.bn.
Pro Tips for Navigating Personal Tax in Brunei
- Confirm Residency Status: Ensure your residency and employment status are aligned with Brunei’s official requirements, as non-income taxation may not extend to certain non-resident scenarios.
- Monitor Other Obligations: Stay aware of other indirect taxes and statutory contributions, such as pension fund payments or social security, which may apply even where personal income tax is zero.
- Stay Updated on Policy Changes: Although the regime is stable, periodically consult the Ministry of Finance’s announcements for any amendments or regulatory updates.
- Leverage the Simplicity: Without individual tax filing obligations, focus administrative resources elsewhere in your financial planning for Brunei.
Brunei’s zero percent individual income tax policy continues to offer significant advantages for high-income earners and international professionals. With no tax brackets, no declarations, and no reporting requirements for personal income, the system is highly streamlined. Still, staying attentive to residency definitions and other local compliance matters remains important. For the most current official information, visit the Brunei Ministry of Finance at www.mofe.gov.bn.