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8.2.2. Withholding Taxes

The WHT rates levied on income received / derived by non-residents from sources within Brunei are as below, which may be further reduced under an applicable tax treaty.

A Public Ruling issued by the Collector of Taxes on 1 April 2017 addresses in detail all areas related to withholding taxes.

Dividend

Brunei does not levy withholding tax on dividends that have been assessed to tax, paid to non-resident.

Interest

From 1 April 2017 onwards, interest paid to a non-resident is subject to a 2.5% (previously 15%) withholding tax.

Royalty Copyright  

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Patent

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Royalty Trademark

Tax is withheld at the rate of 10% on royalties paid to non-residents.

Service Management

From 1 April 2017 onwards, tax is withheld at the rate of 10% (previously 15%) on service management fees paid to non-residents.

Service Technical  

Tax is withheld at the rate of 10% on service technical fees paid to non-residents.

Other

Any other income like rental income or other payments for the use of movable property earned by non-residents is subject to withholding tax at 10%. Further, tax is withheld at the rate of 10% on remuneration paid to non-resident directors.

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains 18.5 %
Dividends 0.0 %
Interest 2.5 %
Royalty Copyright 10.0 %
Royalty Patent 10.0 %
Royalty Trademark 10.0 %
Sales 0.0 %
Service Management 10.0 %
Service Technical 10.0 %

* Rates are current as of 02 October 2022