How is income tax calculated in Brunei?
Brunei does not impose personal income tax. Citizens and permanent residents contribute to the National Retirement Scheme.
What is the income tax rate in Brunei?
No personal income tax. Citizens and permanent residents pay 8.5% to the national retirement scheme.
What mandatory salary deductions apply?
- Citizens and permanent residents: 8.5% of basic salary to the National Retirement Scheme (SPK). Foreign workers: none.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: BND 4,000.00 a month
A Bruneian citizen earning BND 4,000 a month.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | BND 4,000.00 | BND 48,000.00 |
| Income tax | BND 0.00 | BND 0.00 |
| Compulsory contributions | BND 340.00 | BND 4,080.00 |
| Take-home pay | BND 3,660.00 | BND 43,920.00 |
Effective income tax rate 0.0%; all deductions 8.5%. Partial: SPK is charged on basic salary only; this applies it to the whole salary entered, so allowances would make it too high.
How can employees legally reduce their taxes?
- There is no income tax to reduce. What changes take-home pay is the employee’s social insurance, which is set by law and cannot be opted out of where it applies.
Frequently asked questions
Is there income tax on salaries in Brunei?
No. Brunei does not tax employment income.
Who pays into the National Retirement Scheme?
Citizens and permanent residents: 8.5% of basic salary, matched by the employer.
Official sources
- PwC Worldwide Tax Summaries (reviewed 3 August 2026): Taxes on personal income and social security contributions. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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