Competitive investment incentives are ready and available for investors throughout the business cycle of start up, growth, maturity and expansion. Investment incentives are provided for in the Investment Incentives Order 2001. This Act offers incentives in the form of tax exemption for the followings:
PIONEER INDUSTRIESAny company which has been granted a pioneer certificate will be given the pioneer incentives provided the following requirements are met:
TAX RELIEF PERIODThe tax relief period of pioneer industry will begin on its product will begin on its production day. The tax relief periods are as follows:
PIONEER SERVICES COMPANIESCompanies may be classified as Pioneer Services Companies:
TAX RELIEF PERIODThe tax exemption period of a pioneer service company shall start on the commencement day. Exemption period for eight years but extension not exceeding 11 years in total.
POST PIONEER COMPANIESAny company which is:
TAX RELIEF PERIODTax relief period of Post Pioneer Company shall start on its commencement day and shall continue for a period not exceeding six years and may be extended, but not more than 11 years in total.INVESTMENT INCENTIVES
EXPANSION OF ESTABLISHED ENTERPRISESAny company intending to incur new capital expenditure for the purpose of the manufacture or increased manufacture of an approved product may apply to the Minister for an Expansion Certificate.To qualify for an Expansion Certificate:
TAX RELIEF PERIOD
INVESTMENT INCENTIVEExemption from income tax.
EXPANDING SERVICE COMPANIESThe tax relief period of expanding service company shall:
Exemption period of 11 years. The extension period not exceeding five years at any one time and may be extended but not more than 20 years in total.
INVESTMENT INCENTIVEExemption from income tax.
PRODUCTION FOR EXPORT
TAX RELIEF PERIOD Where an export enterprise has incurred or is intending to incur a capital expenditure of:
TAX RELIEF PERIODTax relief period of an export service company shall commence on its start day, not exceeding 11 years. The extension shall not exceed three years at any one time but not in aggregate exceeding 20 years.INVESTMENT INCENTIVES
TAX RELIEF PERIODThe tax relief period of an international trading company, in relation to any certificate issued to that company, shall commence on start day and shall continue for a period of eight years.INVESTMENT INCENTIVEExemption from income tax.
FOREIGN LOANS FOR PRODUCTIVE EQUIPMENTThere is a 20 per cent withholding tax for interest paid to non-resident lenders. However, the government may grant tax exemption for any "approved foreign loan" if:
TAX RELIEF PERIODDepend on the financial agreement with the foreign lender.INVESTMENT INCENTIVEExemption of approved foreign loan interest from paying withholding tax.
INVESTMENT ALLOWANCESSubject to the economic, technical and other merits of the project, an investment allowance may also be applied in respect of the fixed capital expenditure of any of the following:
Every certificate issued under this section shall specify a date from the investment day.INVESTMENT ALLOWANCESWhere a company proposes to carry out a project, the investment allowance granted for the approved project shall be a specified percentage not exceeding 100 percent of the amount of the fixed capital expenditure incurred on each item specified on an approved project if the fixed capital expenditure is incurred.
WAREHOUSING AND SERVICING
TAX RELIEF PERIODThe relief period of warehousing company shall commence on its start day and shall continue but not exceeding 11 years. The extension shall not exceed three years at one time but not exceeding 20 years in aggregate.INVESTMENT INCENTIVEExemption from income tax.
INVESTMENT IN NEW TECHNOLOGY COMPANIESAny company incorporated in Brunei Darussalam which is desirous of developing or using in Brunei Darussalam a new technology in relation to a product, process or service may make application for this incentive provided as follows:
INVESTMENT INCENTIVEDeduction allowable to eligible holding company.
OVERSEAS INVESTMENT AND VENTURE CAPITALApplication for and issue of certificate to venture company:
INVESTMENT INCENTIVEDeduction of losses allowable to eligible holding company.OTHER INCENTIVES UNDER THE INCOME TAX (CHAPTER 35)
There are no export, sales payroll and manufacturing taxes in Brunei Darussalam.
DECLARED PIONEER INDUSTRIES AND PRODUCTSThe following industries have been declared as pioneer industries and pioneer product
NOTE * The pioneer Certificates have already been granted to companies.
For further information and clarification, please contact:
Promotion and Facilitation Services
Ministry of Industry and Primary Resources
Jalan Menteri Besar BB3910
Tel: (673) 238 0022 Fax: (673) 238 2835
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