His Majesty’s government has announced the reduction of the corporate income tax rate from 30% to 22% for the financial period 1 January 2010 onwards. For further details please see Tax Rates.
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
Exemption from import duties on machinery, equipment, component parts, accessories, building structures and raw materials
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:
8yrs for a a company achieving at least 20% of its total sales target and not less than B$20k; 15 years for export enterprise with a Fixed Capital Expenditure of B$500k and above
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