Living in Brunei: no personal income tax or capital gains tax according to the ministry, 183-day residency requirement

This page reports information published by the Brunei Darussalam Ministry of Finance, the country's official business portal, and the French tax authorities. In its FAQ on corporate tax, the Ministry's revenue division states that "currently," no tax is levied on personal income (employment, self-employment, dividends, interest) or capital gains. A Ministry document on investment confirms that there is no personal income tax.

The Income Tax Act, in its revised 2024 edition, includes a residency requirement of 183 days or more of presence or employment in the preceding year. Brunei is not listed in the BOFiP's list of tax treaties concluded by France and in force as of January 1, 2026.

Residence: what the law says about income tax

Article 2 of the Income Tax Law (Chapter 35, Revised Edition 2024, published by the Ministry of Finance) defines a resident. For an individual, this is a person who, in the year preceding the tax year, resides in Brunei Darussalam, except for temporary absences that the Collector deems reasonable and compatible with this status.

The definition also includes individuals who are physically present in Brunei, or who hold a position there other than that of a company director, for 183 days or more during the year preceding the tax year. For a company or group of persons, the criterion is the exercise of control and direction of business activities in Brunei Darussalam.

The tax year is a twelve-month period beginning on January 1st. The pages consulted do not indicate what consequence this definition has for an individual, since the ministry also states that no tax is levied on personal income.

Personal income tax: what the ministry says

The answer to the question "What type of income is taxable in Brunei?" can be found in the Revenue Division's FAQ. It begins with corporate tax, then lists three categories on which "currently, no tax is levied.".

The ministry document entitled "Brunei Darussalam – A Growing Investment Destination" states: "the country is politically stable, the crime rate is low and there is no personal income tax." It is undated.

The ministry's pages also lack an update date. Only a 2025 copyright notice appears at the bottom of the page. The "Income Tax" page on the same website states that the provisions of the Act do not affect the income of individuals other than corporations. However, section 8 of the Income Tax Act applies to "the income of any person," including income from employment, dividends, or interest, at the rates "specified below." Section 34 subjects "any person, other than a corporation," to tax "at the rates specified in Schedule 2," and section 1(2) sets the Act's effective date at December 31, 1949, "to the extent specified in Schedule 1" (entitled "Extent to which Act applies"). The text of these two annexes is not detailed here: the source used for the absence of personal income tax is the publication of the ministry.

Companies: two rates in the ministry's pages

The corporate tax FAQ states that tax is levied for each tax year at a rate of 18.5 % of the taxable income of each company, whether incorporated in Brunei or another country, as long as it receives income in Brunei Darussalam.

The "Income Tax" page on the same website still mentions, in its text, a rate of 30 % for corporations. The two pages are inconsistent and undated. Section 35(1) of the Income Tax Act, revised edition 2024, sets the tax for each corporation at 27.5 % of taxable income for the 2008 tax year, 25.5 % for 2009, 23.5 % for 2010, 22 % for 2011, 20 % from 2012 to 2014, and then 18.5 % for the 2015 tax year and subsequent years. This list does not include a rate of 30 %. The rate of 18.5 % from the frequently asked questions is included there.

Real estate: land transfer and stamp duty

The official business portal describes the procedure for transferring land ownership. The buyer's lawyer consults the records of the Department of Lands, for a nominal fee of 1 Brunei dollar, and then submits the application online.

• A stamp duty deposit of 250 Brunei dollars for bare land, or 1,000 Brunei dollars for land with a building, is paid at the counter with the deed of transfer;
• The final stamp duty is set by the evaluation section, and any balance is notified by SMS after approval;
• Approval from the "Higher Authority" takes approximately two to three months;
• If the document is not filed or signed within 21 days of the acknowledgement of receipt, the application will no longer be processed.

The page does not specify who can acquire land: it does not mention citizens, foreigners, or companies. It is not dated.

The Ministry's page on stamp duty refers to the first schedule of the Stamp Duty Act (Chapter 34). It lists, among the acts subject to a proportional duty, deeds of transfer of property, including securities and company shares, as well as leases. It provides the applicable rates.

According to the same page, transfers of property or shares between the owner and a dependent, between spouses, and from a parent to their children, including adopted and registered children, are exempt. A loan for a first home, including land, is exempt up to $250,000. The page does not specify the applicable rate for the sale of real estate.

Coordination with France: no agreement in the BOFiP list

The BOFiP annex "List of tax treaties concluded by France" (version of April 29, 2026) specifies that it only lists agreements or conventions in force on January 1, 2026. Brunei is not included. The annex does not indicate whether another agreement, such as an information exchange agreement, exists with this country. Meanwhile, the Brunei Ministry of Finance's page on double taxation treaties lists 19 partners, including Laos, Malaysia, Singapore, and the United Kingdom; France is not among them.

Without a tax treaty, French domestic law applies. The BOFiP (Official Bulletin of Public Finances) reminds us that individuals who have their home or principal residence in France, who carry out a professional activity there, or who have the center of their economic interests there are considered domiciled in France. They are taxed on all their income from French or foreign sources, subject to tax treaties (Article 4 B of the French General Tax Code (CGI)).

The BOFiP (Official Bulletin of Public Finances) on the elimination of double taxation specifies that, in the absence of a tax treaty, no treaty obligation compels France to eliminate potential double taxation. The instructions for form 2047 (income for 2025) indicate that income originating in a country without a treaty does not entitle the taxpayer to a tax credit. This income is declared as taxable in France for its net amount after tax withheld abroad, or for its gross amount if no tax has been paid in the other country. Leaving France falls under the...’exit tax and tax residence.

What this page does not cover

It does not detail the text of the income tax law beyond the definition of resident and Articles 1, 8, 34, and 35, nor does it cover potential withholdings on payments to non-residents, inheritance and gift taxes, wealth taxation, the conditions for foreign land acquisition, social security contributions, or visas and residence permits. These matters fall under Brunei Darussalam's own legislation and should be verified with the Revenue Division of the Ministry of Finance. Balmont Conseil is neither a law firm nor a local tax advisor: local tax matters should be verified with a professional based in Brunei. French tax matters, particularly the departure declaration and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• Your tax residence in France and Brunei, year by year, and the number of days spent in Brunei.
• The nature of your income: employment, self-employment, dividends, interest, capital gains, income from a company.
• Owning a company, whose tax is separate from that of individuals, or a sole proprietorship.
• The property in question in the event of purchase: bare or built land, lease, loan for a first home.

The rule depends on your situation. No results are guaranteed.