Brunei Personal Income Tax Guide 2026

Overview — No Personal Income Tax in Brunei

Brunei Darussalam is one of the few countries in the world that levies no personal income tax on individuals. The Income Tax Act (Chapter 35) imposes tax only on companies and certain specified entities — individuals are explicitly exempt from income tax. This applies to all forms of personal income including salaries, wages, bonuses, commissions, self-employment income, business profits, professional fees, and investment returns. There is no distinction between residents and non-residents for personal tax purposes — both are treated equally (zero tax). The government generates revenue primarily from oil and gas resources, corporate tax, and customs duties rather than personal taxation.

Employment Income — Zero Tax

All employment income earned by individuals working in Brunei is completely tax-free. This includes basic salary, overtime pay, bonuses, commissions, allowances (housing, transport, entertainment), gratuities, and benefits-in-kind. There is no PAYE (Pay As You Earn) system because there is no tax to withhold. Employers do not deduct any income tax from employee salaries. Employees receive their full gross salary without any tax deduction. This applies equally to Bruneian citizens, permanent residents, expatriate workers, and foreign professionals working in Brunei. The absence of personal income tax is a significant attraction for skilled foreign workers and multinational companies operating in Brunei.

Self-Employment & Business Income

Self-employed individuals, sole proprietors, and independent contractors also pay zero personal income tax on their business profits in Brunei. Unlike most countries where self-employment income is taxed progressively, Brunei treats all individual business income as tax-free. The only tax obligation for a sole proprietor is the registration of the business with the Registrar of Companies and Business Names (ROBD) and compliance with any sector-specific licensing requirements. Self-employed individuals are not required to file personal tax returns. However, if the business is conducted through a company structure, the company may be subject to corporate tax at 18.5% on chargeable profits.

TAP Contributions — Not a Tax

The only mandatory deduction from employment income in Brunei is the Tabung Amanah Pekerja (TAP) contribution — the employee's provident fund contribution. TAP is a retirement savings scheme, not a tax. The employee contributes 5% of monthly wages and the employer contributes an additional 5%, totalling 10% of wages. These contributions are held in the employee's individual account with TAP and are withdrawable upon retirement, permanent departure from Brunei, or under specified circumstances. TAP is administered by the Tabung Amanah Pekerja (TAP) authority under the TAP Act (Chapter 127). Some employers may also contribute to the Supplemental Contributory Pension (SCP) scheme on a voluntary basis.

No Annual Filing Requirement

Individuals in Brunei have no obligation to file an annual personal tax return. There is no tax authority registration requirement for individuals based on income. The only tax-related registration that may apply is the business registration with ROBD for those conducting a trade or business. The absence of personal tax filing eliminates the administrative burden and compliance costs that individuals face in most other countries. For expatriates working in Brunei, this means no need to engage tax advisors for personal tax compliance, though professional advice may still be needed for tax obligations in their home country.

FAQs

Do I need to pay any personal tax in Brunei?

No, Brunei does not impose any personal income tax on individuals. All forms of personal income are tax-free, regardless of amount or source.

Are expatriates taxed on their salary in Brunei?

No, expatriate workers in Brunei enjoy the same zero-tax treatment as Bruneian citizens. There is no distinction between residents and non-residents for personal tax purposes.

What about TAP contributions — is that a tax?

No, TAP (Tabung Amanah Pekerja) is a mandatory retirement provident fund, not a tax. The 5% employee contribution is savings held in your individual account, not government revenue.

Disclaimer

This guide provides general information about Bruneian personal income 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.