Bn Corporate Income Tax

---
name: bn-corporate-income-tax
description: "Source-cited draft: corporate income tax for Brunei (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/bn-corporate-income-tax"
  jurisdiction: "BN"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# Brunei Corporate Income Tax

## Corporate income tax rates and incentives

Brunei's standard corporate income tax rate is 18.5% for resident and non-resident companies. Generous start-up and MSME reliefs apply, and oil and gas upstream profits are taxed at a much higher special rate. Figures should be confirmed against the current Income Tax Act and MoFE guidance.

- **Standard corporate income tax rate** — 18.5% %  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/taxes-on-corporate-income)_
- **Threshold relief on first BND 100,000 of chargeable income** — First BND 100,000 effectively taxed on 25% of chargeable income (i.e. reduced effective rate) (approx — confirm mechanism) BND  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/taxes-on-corporate-income)_
- **Threshold relief on next BND 150,000 of chargeable income** — Next BND 150,000 effectively taxed on 50% of chargeable income (approx — confirm mechanism) BND  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/taxes-on-corporate-income)_
- **Chargeable income above BND 250,000** — Taxed at the full 18.5% statutory rate %  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/taxes-on-corporate-income)_
- **MSME turnover exemption** — Companies with gross sales / turnover not exceeding BND 1,000,000 are exempt from corporate income tax BND  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/taxes-on-corporate-income)_
- **Newly incorporated company exemption** — First BND 100,000 of chargeable income exempt for the first three consecutive years of assessment BND  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/taxes-on-corporate-income)_
- **Oil and gas exploration and production rate** — 55% %  _(Income Tax (Petroleum) Act (Cap. 119) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/taxes-on-corporate-income)_
- **Tax base** — Chargeable income = Brunei-source income and gains of an income nature, less allowable deductions and capital allowances  _(Income Tax Act (Cap. 35))_
- **Withholding tax on dividends** — 0% — no withholding tax on dividends paid to non-residents %  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/withholding-taxes)_
- **Withholding tax on interest to non-residents** — 2.5% %  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/withholding-taxes)_
- **Withholding tax on royalties to non-residents** — 10% %  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/withholding-taxes)_
- **Withholding tax on technical fees / management fees to non-residents** — 10% %  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/withholding-taxes)_
- **Withholding tax remittance deadline** — Within 14 days of payment, remitted to the Collector of Income Tax  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/withholding-taxes)_
- **Estimated Chargeable Income (ECI) deadline** — Within 3 months after the end of the accounting period  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/tax-administration)_
- **Corporate return filing and payment deadline** — Return filed and tax paid by 30 June of the year of assessment  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/tax-administration)_
- **Late payment penalty** — 5% penalty on unpaid tax, plus an additional 1% per month if unpaid after 60 days, capped at 12% additional (approx — confirm)  _(Income Tax Act (Cap. 35) — https://taxsummaries.pwc.com/brunei-darussalam/corporate/tax-administration)_

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `bn-corporate-income-tax` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/bn-corporate-income-tax. If neither is available, confirm every figure against the official source pages cited above before relying on it.