Brunei Capital Gains Tax Guide 2026

Overview — No Capital Gains Tax

The Income Tax Act (Chapter 35) imposes tax on income but explicitly does not extend to capital gains. Brunei has no specific capital gains tax legislation, no CGT return, and no CGT compliance requirements. The absence of CGT applies to all types of assets including real property, listed and unlisted shares, bonds, cryptocurrencies, collectibles, intellectual property, and business assets. There is no distinction between short-term and long-term gains — all capital disposals are tax-free. This provides a significant advantage for investment holding companies, property investors, and private equity investors.

Property & Real Estate Gains

Gains from the sale of real property (land, residential property, commercial property) in Brunei are not subject to any capital gains tax, regardless of the holding period or the amount of gain. There is no distinction between owner-occupied property and investment property. A property bought for BND 200,000 and sold for BND 500,000 realises a tax-free gain of BND 300,000. The only tax consideration in property transactions is stamp duty payable on the transfer (by the purchaser), not on the gain. The absence of CGT on property is a major factor in Brunei's real estate market and makes it attractive for property investors.

Share & Securities Gains

Gains from the disposal of shares, bonds, debentures, unit trusts, and other securities are completely tax-free in Brunei. There is no distinction between listed securities (traded on the Brunei Stock Exchange or foreign exchanges) and unlisted securities. This applies equally to individuals and corporate investors. There is no securities transaction tax or stamp duty on share transfers (except nominal registration fees). Brunei does not have a stock exchange of its own (shares are traded over-the-counter or on foreign exchanges), but residents can trade on any global exchange without domestic CGT implications.

Cryptocurrency & Digital Assets

As with all other capital assets, gains from the disposal of cryptocurrencies and digital assets are tax-free in Brunei. There is no specific crypto tax guidance because the existing framework already treats capital gains as non-taxable. Whether an investor trades crypto frequently (day trading) or holds for long-term appreciation, any gains realised are not subject to tax. The only scenario where crypto could be taxable is if the taxpayer is a company and the crypto trading constitutes ordinary business income (in which case it is taxed as corporate income at 18.5%, not as a capital gain). For individuals, crypto gains are always tax-free.

Trading vs Capital — The Distinction

While capital gains are tax-free, gains from trading activities (where assets are held as stock-in-trade or where the taxpayer is in the business of trading) may be treated as ordinary income subject to corporate tax at 18.5%. The distinction depends on the facts and circumstances including the frequency of transactions, the period of holding, the taxpayer's intention at acquisition, and whether the activity constitutes a trade or business. For companies whose ordinary business is trading (e.g., a securities dealer, a property developer), profits from such trading are business income, not capital gains. For most investors and companies holding assets for investment purposes, disposals are capital in nature and tax-free.

FAQs

Do I need to report capital gains to the tax authority?

No, there is no requirement to report capital gains in Brunei. Individuals do not file tax returns, and companies only report chargeable income (which excludes capital gains).

Is there a difference between short-term and long-term gains?

No, all capital gains are tax-free regardless of holding period. There is no distinction between short-term trading gains and long-term investment gains for capital tax purposes. However, frequent trading may be recharacterised as business income.

Can I offset capital losses?

Since capital gains are not taxable, capital losses are also not recognised for tax purposes. Losses on capital disposals cannot be offset against income or other gains.

Disclaimer

This guide provides general information about Bruneian capital gains tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified tax advisor or the Brunei Ministry of Finance and Economy for advice specific to your situation. InvestmentKit does not provide tax advice.