As an economy that is dependent on its energy sector, the ongoing global crisis, which has seen oil prices drop significantly, has had a major impact on Brunei Darussalam’s economy. The Sultanate’s dependency on this sector has resulted in the government taking serious steps to look at economic diversification.
For year of assessment 2016, no changes have been made to tax or capital allowance rates. However, in a recent notice issued by the revenue division of the Ministry of Finance (MoF) dated April 19, 2016, effective from year of assessment 2016 onward, pursuant to Section 133B and 133C of the Companies Act, Chapter 39 (Amendment) (No.2) Order,...
This chapter explores Brunei Darussalam’s tax regime, focusing on key areas that include tax breaks for businesses, incentives, the withholding tax regime and deductible expenses. It also contains a viewpoint from Shazali Sulaiman, Partner, KPMG Brunei Darussalam; and Chairman, Brunei Darussalam International Chambers of Commerce and Industry.
Commanding the second-highest GDP per capita of all ASEAN nations, at $40,979 in 2014, Brunei Darussalam remains one of the most advanced economies in the South-east Asian region. This is in large part due to the Sultanate’s well-developed energy sector; however, with oil and gas prices falling substantially from mid-2014, new efforts are being made to increase the efficiency of production and diversify the economy to ensure future stability and sustainability.
Taxation is an important economic tool for any government, but in Sri Lanka we have seen that the tax system is not earning the necessary revenue for the country. Ideally, as income increases, the corresponding tax revenues should also increase (though the rate of increase will decline over time). This, however, is not happening in Sri Lanka:...
In addition to serving as a source of government revenue, taxation helps bridge the wealth gap. Taxation is also used as a disincentive on the consumption of demerit goods. Inflation rates and the balance of payments can be controlled and maintained with taxation, which can pave way for further economic growth and development.
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