Brunei is one of the few places in Asia with no personal income tax at all. Your salary, freelance profit, pension, dividends, interest and capital gains aren't taxed, and there's no annual tax return for individuals. Foreign employees don't pay into the national pension scheme either. So for most expats the tax bill really is zero.
But zero tax in Brunei doesn't end the story. Estate duty is still on the statute book, stamp duty applies to property and share transfers, and the country you leave may still want to tax you. This guide covers the 2026 tax year (Brunei's year of assessment is the calendar year, 1 January to 31 December 2026): what Brunei taxes and what it doesn't, the residence rules, the SPK pension scheme, treaties and how to stay long term.
What's changed: the old TAP provident fund and SCP pension have been merged into the National Retirement Scheme, Skim Persaraan Kebangsaan (SPK), under the National Retirement Scheme Order, 2023. Employees pay 8.5% of their salary with no upper limit (the old cap on pay above BND 2,800 a month has gone), and employers pay 8.5% to 10.5%. SPK covers citizens and permanent residents only. The 2026/2027 budget presentation in March 2026 didn't announce any new taxes, and the treaty with the Philippines came into force on 25 January 2024.
📋 Brunei tax at a glance for 2026
Topic | Details |
|---|---|
Tax system | No personal income tax. The Income Tax Act taxes only companies; individuals, sole proprietors and partnerships aren't taxed |
Tax year | The calendar year, 1 January to 31 December 2026 |
Income tax rate for individuals | 0% on salary, self-employment, pensions, dividends, interest and capital gains |
All-in on a US$100k salary | 0% for a foreign employee (BND 128,000 at BND 1.28 to US$1). 8.5% SPK if you're a permanent resident |
Social security | SPK pension scheme for citizens and permanent residents only: 8.5% employee, 8.5% to 10.5% employer |
Other taxes | Estate duty of 3% on estates over BND 2 million; stamp duty on documents such as property and share transfers. No wealth tax |
Residence at a glance | Getting in: an employment pass or other sponsored pass. Leaving: nothing to settle in Brunei; your home country's rules decide |
Double tax treaties | 19 listed, including the UK, China, Japan, Malaysia, Hong Kong, the UAE and the Philippines. None with the US |
US dollar figures use BND 1.28 to US$1, October 2026. The Brunei dollar is pegged to the Singapore dollar at par, and the US Federal Reserve showed SGD 1.2798 to US$1 on 16 October 2026. So US$100k is about BND 128,000, US$40k about BND 51,200, US$20k about BND 25,600 and US$1m about BND 1.28 million.
👉 US Federal Reserve: H.10 foreign exchange rates (Singapore dollar)
No personal income tax: what that really means
Why does Brunei come up whenever people ask about tax-free countries in Asia? Because the law itself switches personal tax off.
Image 1 — no personal income tax in Brunei, and what can still apply
The Income Tax Act (Chapter 35) still contains rules for individuals, including a rate section and personal allowances. But its First Schedule says tax is charged, levied and collected only on the incomes of companies, and that the Act doesn't have effect on the incomes of any other persons. The same schedule switches off the section on deducting tax from salaries and pensions, so there's no payroll tax deduction either.
The Ministry of Finance and Economy puts it plainly. Its Revenue Division FAQ says no tax is currently levied on:
Personal income: any earnings by an individual from employment, self-employment, dividends, interest and so on.
Unincorporated businesses: sole proprietorships or partnerships registered as business names.
Capital gains: a profit from selling property or an investment.
Two things the zero rate doesn't cover. Estate duty and stamp duty are charged under the Stamp Act, not the Income Tax Act (more on both below). And Brunei's zero rate has no effect on the country you've left. If it still treats you as resident, or taxes its citizens wherever they live, you could owe tax there with no Brunei tax to offset it.
👉 Ministry of Finance and Economy, Revenue Division: FAQ on what income is taxable in Brunei
When you become tax resident in Brunei, and how you stop
The Income Tax Act does define residence. Under section 2, an individual is resident for a year of assessment if, in the year before, they lived in Brunei apart from reasonable temporary absences, or were physically present or worked there (other than as a company director) for 183 days or more.
In practice that test does very little for you, because Brunei doesn't tax individuals whether they're resident or not. What matters more:
Your right to live there. To work in Brunei you need an employment visa and an employment pass, arranged before you arrive. Your spouse and children under 18 need dependant's passes.
Your home country's tests. Moving to Brunei only cuts your old tax ties if you meet that country's rules for leaving, such as day counts, a home or family ties.
Treaty residence. If both countries could see you as resident, a treaty decides. Brunei has 19, including one with the UK (see below). Ask the Revenue Division whether it will issue you a certificate of residence before you rely on one.
To stop being resident in Brunei, you simply leave. There's no exit tax and no final tax return to file. If you've been contributing to SPK as a permanent resident, check the withdrawal rules with TAP before you go.
👉 Ministry of Foreign Affairs: FAQ on visit visas and employment passes
Income tax for 2026
With no personal income tax, there's no rate table to apply. Here's how each kind of income and the main duties are treated for an individual in 2026.
Brunei tax rates for individuals in 2026
Income or transaction | Rate |
|---|---|
Salary and benefits | 0% |
Self-employed and business profit (unincorporated) | 0% |
Pensions, Brunei or foreign | 0% |
Dividends and interest | 0% |
Capital gains, including property and crypto | 0% |
Estate duty | 3% where the estate is worth more than BND 2 million |
Stamp duty on a property purchase | BND 1.50 for every BND 250 of the price (about 0.6%) |
Stamp duty on a share transfer | 10 cents for every BND 100 (0.1%) |
Source: Ministry of Finance and Economy Revenue Division FAQ; Income Tax Act, First Schedule; Stamp Act (Chapter 34), section 69 and First Schedule, articles 1A and 28.
Worked example
You move to Brunei from the UK on a two-year contract with a Brunei employer, earning BND 128,000 a year (US$100k).
Income tax on your salary: nil. Your employer deducts no tax.
SPK pension: nil, because you're not a citizen or permanent resident.
Your interest and dividends from savings at home: nil in Brunei.
Your all-in Brunei bill is BND 0, or 0% of your salary. If you were a permanent resident, you'd pay 8.5% to SPK, or BND 10,880 a year. Check whether the UK still treats you as resident in your year of departure, and whether UK income such as rent is still taxable there.
Freelancing in Brunei
Is freelance income taxed in Brunei? No. Earnings from self-employment are personal income, and sole proprietorships and partnerships registered as business names aren't taxed. That applies whether your clients are in Brunei or abroad.
The hard part is permission to work. Brunei has no freelance or self-employment visa. The Ministry of Foreign Affairs lists a business visit visa for investment or business activity, a professional visit visa for project work, and an employment visa. Working for yourself while living in Brunei usually means setting up and being sponsored by a business, or holding another pass that allows it. Check with Brunei's immigration department before you start.
There's no social security charge for foreign freelancers either. SPK has a voluntary self-employed scheme, with a government top-up of up to BND 17.50 a month, but it's only open to citizens and permanent residents.
👉 Ministry of Foreign Affairs: types of visa
Crypto, investments and pensions
Is crypto taxed in Brunei? No. A crypto gain is a capital gain or personal income, and the Ministry says neither is taxed. Unlike most low-tax countries, Brunei doesn't tax individuals who trade often either, because it has no personal income tax to fall back on.
Pensions: a UK state pension, a private pension or any other foreign pension isn't taxed in Brunei. Your old country may still tax it under its own rules or the treaty.
Dividends and interest: untaxed, from Brunei or abroad.
Capital gains: untaxed, on shares, property and other investments.
Wealth: there's no wealth tax.
Two duties remain under the Stamp Act:
Estate duty: for deaths on or after 15 December 1988, estate duty is charged at 3% where the principal value of the estate is more than BND 2 million (section 69 and article 1A of the First Schedule). Up to BND 2 million of the value of homes is left out of the estate (section 71A). A US$1m portfolio, about BND 1.28 million, is under the threshold on its own.
Stamp duty: charged on documents such as property transfers, leases and share transfers. Pay it within 14 days of signing a document in Brunei, or within 30 days of receiving a document signed abroad, to avoid penalties.
👉 Ministry of Finance and Economy: Stamp Act (Chapter 34), including Part IX on estate duty
👉 Ministry of Finance and Economy, Revenue Division: stamp duty FAQ
Social security
Do expats pay social security in Brunei? Not if you're a foreign national on an employment pass. The National Retirement Scheme Order, 2023 defines an employee as a citizen of Brunei Darussalam or a permanent resident, so SPK simply doesn't apply to other foreign workers. Your employer may still offer a company pension, and your home country may let you keep paying voluntarily.
For citizens and permanent residents, SPK replaced the old TAP and SCP schemes:
Employee: 8.5% of salary, with no minimum or maximum.
Employer: BND 57.50 a month on salaries up to BND 500, 10.5% (at least BND 57.50) on BND 500.01 to BND 1,500, 9.5% on BND 1,500.01 to BND 2,800, and 8.5% above BND 2,800.
No ceiling: the old cap on pay above BND 2,800 a month has been removed.
Permanent residents with a foreign nationality are under separate rules: at retirement age they get a monthly payment of at least BND 500 until their account runs out or for 20 years, rather than the payments for citizens.
Employers pay the full contribution to TAP by the 15th of the following month.
👉 TAP: SPK employers' contribution FAQ (8.5% with no cap)
👉 TAP: Skim Persaraan Kebangsaan (SPK) for citizens and permanent residents
Double tax treaties
Does Brunei have double tax treaties? Yes. The Ministry of Finance and Economy lists 19 avoidance of double taxation agreements. Partners include the UK (in force since 1951, amended in 2013), China, Japan, Malaysia, Indonesia, Vietnam, Hong Kong, South Korea, the UAE, Qatar, Bahrain, Kuwait, Oman, Luxembourg, Cambodia and, since 25 January 2024, the Philippines. There's no treaty with the United States.
Because Brunei doesn't tax individuals, treaties matter less to you than usual. They help in two cases: when your old country also treats you as resident, so the tie-breaker decides where you live for treaty purposes, and when you receive income from a treaty country, where the treaty can cut that country's withholding tax.
👉 Ministry of Finance and Economy: avoidance of double taxation agreements
Living in Brunei long term
Brunei has no digital nomad visa, remote work visa or retirement visa. The routes available:
Visa-free visits: the Ministry of Foreign Affairs' visa arrangement list allows UK, US and Schengen passport holders up to 90 days without a visa. Many other nationalities get 14 or 30 days. A visit isn't a basis for working in Brunei.
Employment: an employment visa and an employment pass, arranged through your employer before you arrive.
Family: a dependant's pass for the spouse and children under 18 of someone working in Brunei.
Business: a business visit visa for investment or business activity, and a professional visit visa for project work.
So Brunei suits people with a job offer or a family member working there, not someone who wants to move on their own and work remotely. Check current entry rules with a Brunei mission before you travel; the visa arrangement list on the Ministry's site is dated 2018.
👉 Ministry of Foreign Affairs: visa arrangements by nationality
Who is Brunei good for?
How does Brunei compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including social security, at BND 1.28 to US$1.
☑️ Who is Brunei good for? Tax ratings for expats in 2026
Expat profile | Brunei rating | Why |
|---|---|---|
Employees | Excellent | 0% on a US$100k salary (BND 128,000). There's no income tax on employment income, and the National Retirement Scheme (SPK) covers only citizens and permanent residents, so a foreign employee pays nothing. If you later become a permanent resident, you'd pay 8.5% to SPK, still under the 10% line. |
Freelancers (self-employed) | Excellent | 0% on US$100k of self-employed profit. Income from self-employment and sole proprietorships isn't taxed. The catch is immigration: there's no freelance or self-employment visa, so you need a pass that lets you work in Brunei. |
Retirees | Good | 0% on a US$40k foreign pension plus US$20k of investment income: Brunei doesn't tax pensions, dividends, interest or gains. But estate duty of 3% applies to estates worth more than BND 2 million, with up to BND 2 million of homes left out, and there's no exemption for a spouse or children. |
Crypto gains | Excellent | No tax on a US$100k crypto gain. The Ministry of Finance and Economy says capital gains and personal income aren't taxed, so even frequent trading by an individual isn't caught. There's no crypto-specific tax rule. |
Investment income | Excellent | 0% on a US$1m portfolio earning 4% income and 4% realised gains (BND 51,200 each). Dividends, interest and capital gains are all untaxed for individuals, and there's no wealth tax. |
Digital nomad visa | Poor | Brunei has no digital nomad, remote work or retirement visa. Visitors from the UK, US and Schengen countries can stay up to 90 days without a visa, and longer stays need an employment visa and pass, a dependant's pass or another sponsored route. |
Filing and deadlines
As an individual, you have very little to file in Brunei.
Annual return: none. Individuals aren't within the Income Tax Act, so there's no personal return and no tax deducted from salary.
SPK: if you're a permanent resident, your employer pays your contributions to TAP by the 15th of the following month.
Stamp duty: due within 14 days of signing a document in Brunei, or 30 days after a document signed abroad first arrives. Stamp it late and you pay a penalty on top of the duty: double the unpaid duty (at least BND 10) within three months, then four times the duty (at least BND 25).
Estate duty: on a larger estate, probate isn't issued until estate duty has been paid (Stamp Act, section 76).
Your home country: this is usually where the real deadlines are, including any final return for the year you leave.
👉 Ministry of Finance and Economy, Revenue Division: income tax
👉 Ministry of Finance and Economy: 2026/2027 budget presentation (in Malay)
Frequently asked questions
Does Brunei have personal income tax?
No. The Income Tax Act only charges tax on companies' income. The Ministry of Finance and Economy says no tax is levied on personal income from employment, self-employment, dividends or interest, on sole proprietorships and partnerships, or on capital gains. Individuals don't file a tax return.
Do expats pay social security in Brunei?
Not usually. The National Retirement Scheme (SPK) covers only citizens and permanent residents. They pay 8.5% of salary with no cap, and their employer pays 8.5% to 10.5%. A foreign employee on an employment pass pays nothing.
Does Brunei have inheritance tax?
Yes, in the form of estate duty under the Stamp Act. For deaths since 15 December 1988 it's 3% where the estate is worth more than BND 2 million, and up to BND 2 million of the value of homes is left out. Smaller estates pay nothing.
Is crypto taxed in Brunei?
No. Brunei doesn't tax capital gains or personal income, so an individual's crypto gains aren't taxed, whether you hold for years or trade often. There's no crypto-specific tax rule.
Does Brunei have a digital nomad visa?
No. UK, US and Schengen passport holders can visit for up to 90 days without a visa, but living and working there needs an employment visa and employment pass through an employer, or a dependant's pass if your spouse works there.
Does Brunei have a tax treaty with the UK?
Yes. The UK agreement has been in force since 1951 and was amended in 2013. Brunei lists 19 agreements in all, including China, Japan, Malaysia, Hong Kong and the UAE, but none with the United States.
Where to go next
👉 Lowest-tax countries for employees
👉 Best countries for freelancers
👉 Best countries for crypto tax
👉 Best countries for investors
👉 Best countries for entrepreneurs
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
