Brunei Darussalam offers a straightforward approach to corporate taxation. This overview provides the essential facts about corporate income tax and related levies applicable to companies operating in Brunei as of 2025.
Corporate Tax Rates and Assessment in Brunei (2025)
Brunei’s corporate tax regime is progressive in form, though the practical effect is a single flat rate applied across all income brackets. The following table summarizes the applicable rates and brackets for companies:
| Taxable Income (BND) | Rate (%) |
|---|---|
| BND 0 – BND 100,000 | 18.5% |
| BND 100,001 – BND 250,000 | 18.5% |
| Above BND 250,000 | 18.5% |
Despite the progressive structure, the uniform rate of 18.5% applies at every income level for corporations. For international readers, with June 2025 rates at BND 1 ≈ USD 0.74, this translates to a rate of 18.5% regardless of earnings measured in USD.
Special Surtax for Oil and Gas Companies
Brunei’s tax system includes a significant surcharge for corporations engaged in petroleum exploration and production. These entities are subject to a sharply higher tax rate, as shown below:
| Industry | Surtax Rate (%) | Condition |
|---|---|---|
| Oil & gas exploration and production | 55% | Applies as petroleum tax for eligible companies |
Taxation Basis and Other Corporate Tax Features
Corporate tax in Brunei is assessed on a company’s corporate taxable income. There are no holding period requirements relevant for preferential rates, based on publicly available information. No additional details on reduced rates or exemptions are available for 2025.
Summary Table: Key Facts (2025)
| Feature | Details |
|---|---|
| Tax Type | Progressive (flat rate in practice) |
| Standard Corporate Tax Rate | 18.5% (all income brackets) |
| Currency | BND (Brunei Dollar) |
| Surtax for Oil & Gas | 55% (petroleum tax) |
| Assessment Basis | Corporate taxable income |
| Holding Period for Tax | No data available |
Pro Tips for Optimizing Corporate Tax Position in Brunei
- Review company classification: If your company is involved in oil and gas, confirm eligibility for the petroleum tax regime to plan for the 55% rate.
- Optimize your taxable income: With a flat corporate rate, focus on allowable deductions and clear financial reporting to avoid unnecessary tax exposure.
- Stay updated with local regulations: Brunei’s tax authorities may update corporate tax rules annually. Refer to official updates and maintain close contact with qualified local advisors.
- Consider currency implications: As taxes are paid in BND, monitor exchange rates if your business operates internationally, impacting USD or other currency equivalents.
Further Information
For official guidance and updates, visit the Brunei Ministry of Finance homepage: https://www.mofe.gov.bn
In summary, Brunei offers a clear and stable corporate tax regime with a simple flat rate of 18.5% for most companies, while petroleum-related entities face a much higher tax burden. Key considerations include verifying your sector, maintaining accurate accounts, and following official updates from Brunei’s authorities. The low corporate tax rate for conventional businesses is an attractive feature for those considering Brunei as a business base in 2025.