Brunei

Last update: 2026-05-28
BN BND$ Malay
Pros
Zero personal income, capital gains, or sales taxes for individuals and most business entities.
High level of physical security and political stability within a well-maintained urban environment.
Strategic location in Southeast Asia with modern infrastructure and reliable energy supplies.
Cons
Absolute monarchy with strict Sharia law and significant restrictions on personal and religious freedoms.
Heavy state dominance in the economy and high dependence on the oil and gas sector.
Strict social regulations including a total ban on alcohol and limited cultural diversity.
Personal income
Corporate
18.5 → 18.5%
progressive
Capital gains
VAT (standard)
NONE
i 2.9 VERY LOW TAX
i 2 DIVIDEND PIPELINE
i 2 CRYPTO HAVEN
i 2 PRIVACY GRADE
i 1.8 HOLDING
i 0.9 EASY CITIZENSHIP
VERYLOW TAX 2.9/10 HOLDING 1.8/10 DIVIDENDPIPELINE 2/10 CRYPTOHAVEN 2/10 PRIVACYGRADE 2/10 EASYCITIZENSHIP 0.9/10
01/08

Will Brunei tax what you earn?

income tax tax residency territorial system

NO. Brunei doesn't tax personal income, and doesn't reach for you when you settle. No withholding, no return, no centre-of-vital-interests test waiting to trip. Salary is a non-event here, both in the rate and in the paperwork.

Personal income taxi
%
progressive · 0 brackets
Income simulatori
Income
Tax due
Effective rate
all-in
Marginal rate
Tax residence testi
183days
183-day rule
Economic interest
Family centre
Habitual abode
Extended-stay test
Just one rule above is enough to make you tax-resident here.
02/08

Will Brunei tax what you own?

capital gains wealth tax inheritance dividends interest

NO. Brunei doesn't tax what you hold. No capital gains, no annual wealth assessment, no inheritance regime. The value sitting in your portfolio compounds untouched, and leaves it the same way it arrived.

Capital gainsi
NONE
flat
Dividend taxi
NONE
flat
Interest incomei
NONE
flat
Wealth taxi
NONE
no annual wealth tax · no real-estate wealth tax · no net-worth assessment
Crypto · tax regimei
Regime
ZERO TAX
Rate
0%
Brunei Darussalam does not impose personal income tax or capital gains tax on individuals. The Brunei Darussalam Central Bank (BDCB) has issued multiple statements clarifying that cryptocurrencies are not legal tender and are unregulated, but no tax is currently levied on individual holdings or trades.
Crypto-to-cryptoi
NEUTRAL
a swap is not a taxable realisation event
FATF travel rulei
NOT SIGNED
no information-sharing obligation on VASP transfers
Inheritance systemi
NONE
no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply.
03/08

Is it easy to run a company in Brunei?

corporate tax criminal liability public registry VAT IP box

YES, BUT TAXED. Corporate tax in Brunei is 18.5%, but the tax isn't where this country hurts. It treats misuse of corporate assets as a criminal offense (the textbook case is the French abus de biens sociaux doctrine: using your own company's money for personal purposes can trigger prosecution, even as sole shareholder, because the company is a distinct legal person and your consent doesn't waive the offense). And it runs public corporate registries: your name as shareholder is queryable by anyone with a browser. For an owner-operator, those two combined are the real friction. Heavier than the rate, and far less negotiable. Running a clean structure is straightforward; running it casually isn't.

Corporate taxi
18.5%
progressive · +55% Profits from companies engaged in the exploration and production of oil and gas
IP Box · Patent Boxi
NONE
no IP regime · IP income taxed under standard corporate rules
Misuse of corporate assetsi
CRIMINAL LIABILITY
Penal Code (Chapter 22), Section 409B
Brunei law explicitly criminalizes the misappropriation of company assets by directors even if they are the sole beneficial owners of the company. Under Section 409B of the Penal Code (introduced via the Penal Code (Amendment) Order, 2018 - S 60/2018), a director can be found guilty of Criminal Breach of Trust (CBT) notwithstanding their entitlement to the entire beneficial interest of the shareholding. This statutory provision upholds the 'Autonomy of the Legal Entity' principle, ensuring that company funds are legally distinct from personal funds, and their unauthorized personal use constitutes a criminal offense regardless of the company's solvency.
Shareholders privacyi
PUBLIC PAYWALL
Registry of Companies and Business Names (ROCBN)
Directors privacyi
PUBLIC PAYWALL
Registry of Companies and Business Names (ROCBN)
Incorporation costi
Private Limited Company
Sendirian Berhad (Sdn Bhd)
Government Incorporation Fee EUR 202
Name Reservation and Statutory Filing Fees EUR 17
Professional Incorporation & Legal Setup Services EUR 2,354
Total EUR 2,572
VAT standard ratei
NONE
no general VAT · no consumption tax framework
04/08

Is Brunei good for your holding company?

treaty network participation exemption withholding

NO. Brunei doesn't carry a treaty network, which makes it unsuitable as a holding jurisdiction. Any dividend flowing in or out faces full statutory withholding, and no domestic participation exemption can compensate for missing relief on the source side.

Territorial systemi
Individuals
REMITTANCE
Corporates
TERRITORIAL
Individuals: remittance basis (foreign income taxed only when brought in). Corporates: territorial principle — foreign-source profits generally exempt.
Participation exemptioni
NONE
no dividend participation exemption regime
CFC rulesi
NONE
no controlled foreign corporation regime · foreign-source corporate income out of scope
WHT · dividendsi
0%
non-resident outbound
WHT · interest
2.5%
non-resident outbound
WHT · royalties
10%
non-resident outbound
Tax-haven WHT
no punitive rate on record
Treaties signedi
0
active
Treaties pending
in negotiation
Tax treaty networki
origin · BN 0% > 0% no treaty
Inspect a country
Hover any country on the map to read its withholding-tax treaty with BN.
Country Status Dividends Interest Royalties
// no treaties match
05/08

What does it cost to come and go from Brunei?

exit tax territorial system dual citizenship

LITTLE. Coming and going from Brunei is cheap. The country runs a territorial system (foreign income stays foreign), and there's no exit tax on departure. You leave with what you came in with, plus whatever you earned abroad while you were here.

Exit taxi
NONE
no triggers active · residence change tax-free · no deemed-disposal mechanism
Dual citizenship
FORBIDDEN
naturalisation requires renouncing existing citizenship
Citizenship paths
Residence
Marriage
Birth
Descent
Investment
06/08

Will Brunei protect your privacy?

info exchange corporate registries

PARTLY. Brunei has signed most of the standard exchange frameworks and operates a public corporate registry. Financial accounts are reported to your home tax authority, and your shareholdings are visible to anyone. Privacy is shallow on both axes.

Multilateral reporting frameworks 3/10 active · 2 pending
CRS
2018
CARF
FATCA
MLI
BEPS
MAAC
2019
GLOBAL FORUM
EOIR
CRYPTO-CARF
CRYPTO TRAVEL RULE
07/08

Is Brunei itself a liability?

blacklists FATF standing

SOMEWHAT. Brunei is flagged by one or two national tax authorities and sits outside FATF membership. Selective friction: anti-abuse rules trigger on transactions in specific corridors, and counterparties tend to ask more questions.

Blacklist exposure Listed by 2 authorities
FATF
grey / black list
EU
non-cooperative list
FRANCE
ETNC list
SPAIN
tax-haven list
PORTUGAL
favourable regimes
BRAZIL
low-tax list
08/08

Will you feel free in Brunei?

press freedom crypto CBDC EU

PARTLY. Press freedom in Brunei is partial (RSF rank #97): civic space exists but isn't fully open. Crypto, on the other hand, sits untaxed. Mixed picture: payment freedom yes, speech freedom only partly.

Press freedom · RSF indexi
97/180
score 53 · ↑ 20 ranks year-on-year
Central bank digital currencyi
NONE
no announced CBDC program · no pilot · no retail or wholesale prototype on record
SEE ALSO

Other jurisdictions worth comparing

Picked by similarity of strategic profile to Brunei. No editorial ranking — neighbours in the same scoring space.

PROFILE-ADJACENT Same shape, comparable overall friction.
NOTABLY MORE FAVORABLE Same family of strategies, higher total score.
NOTABLY LESS FAVORABLE Same family of strategies, lower total score.