Brunei: Offshore Legal and Tax Regime

Since the establishment of the International Financial Centre (BIFC), Brunei is a "dual jurisdiction", whereby the international legislation offers "offshore" facilities, alongside the usual range of "domestic" legislation drawn from that of England and Wales.

Offshore operations may take place within the following forms:

• International Business Company
• International Limited Partnership
• International Trust

Brunei Tax Treatment of Offshore Operations

See Domestic Corporate Taxes for the general principles of Brunei corporate taxation, which also apply to offshore entities except as indicated below.

International Business Companies, International Limited Partnerships and International Trusts are exempt from corporate taxation.

International banks will pay no tax, and neither will their staff, customers or products.

No taxes or duties of any description are levied, withheld or collected in respect of international insurance business of any licensee (includes insurer, managers, brokers, underwriters) of shares, and no filing or presentation of documents with or to any taxing or analogous authority in Brunei Darussalam is required.

Comprehensive information on fees and charges can be found here.

Brunei Taxation of Foreign Employees of Offshore Operations

There are no special rules applying to the foreign or Brunei employees of offshore operations. In Brunei there is no personal income tax, and there are no export, sales, payroll or manufacturing taxes. Sole-proprietorship and partnership businesses are not subject to income tax.

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Brunei Entry and Residence

Persons entering Brunei Darussalam to take up employment must arrange with their employers to obtain employment passes prior to their arrival. Their spouses and children under 18 years of age of pass holders are required to obtain dependents' passes.

Every foreigner who intends to work in Brunei Darussalam must have a valid Employment Visa authorised by the Department of Immigration and National Registration and is issued at the Brunei Embassy or High Commisioner.

Maximum length of the validity of an employment visa is 3 years. Processing takes 7 working days.

The employer must have a quota license from the Labour Department and needs an approval letter from the work pass section of the Immigration and National Registration Department. The worker should have a valid passport/travel document recognised by the Brunei Director of Immigration and National Registration. The passport must have a validity of 6 months before entering the country.

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