On the 5th of March 2008 His Majesty’s government announced the reduction of the corporate income tax rate from 30% to 27.5% for the Year of Assessment 2008, and to 25.5% for the Year of Assessment 2009 and subsequent Years of Assessment.
These new amendments, together with the Investment Incentives Order 2001, are designed to stimulate economic development by encouraging the establishment of industrial and economic enterprises in Brunei Darussalam. The Order provides guidelines for granting pioneer status to certain industries and tax relief for foreign and local investment, as well as the possibility of extending tax relief periods.
The type of Tax Relief offered in the investment incentives include:
Corporate tax relief of up to 5 years for companies that invest B$500,000 to B$2.5 million in approved ventures
8-years tax relief for investing more than B$2.5 million
An 11-year tax break if the venture is located in a high-tech industrial park
Other incentives include:
Deduction of losses
Adjustment of capital allowances and losses
Exemption from import duties on machinery, equipment, component parts, accessories, building structures and raw materials
Waiver of 20% withholding tax on foreign loans for production equipment
The authority to administer this legislation is currently vested in the Minister of Industry and Primary Resources who is able to offer investment incentives in the form of tax relief for the following:
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