Revenue and International Organisation Division

Introduction

Revenue Division is a unit under Ministry of Finance headed by the Collector of Income Tax (the Permanent Secretary, Ministry of Finance) and assisted by the Head of Revenue Division. International Organisation Division is headed by the Director of Special Duties who coordinates Brunei participation in international organisation and coordinates on custom matters. The total staff strength of this division is 26.

Mission

To administer the taxation system efficiently and fairly and to uphold the good name of Brunei Darussalam in the international finance arena.

Functions and Responsibilities

The functions and responsibilities in the administration of revenue collections are:

• Assist in policy formulation and planning in Revenue and International Organisation matters.
  
  
  • To review and update Income Tax Act to:
    
    
    • Create a modern system;
    • Provide clear regulations and guidelines;
    • Minimise tax avoidance and evasion.
      
      
  • To widen tax base through:
    
    
    • Increase in companies with limited liabilities;
    • Other kind of taxes.
      
      
  • To widen the use of computer in revenue collection
    
    
  • To provide sound and dynamic financial system consistent with international standards.
• Administer the Income Tax Act Cap 35, Income Tax Act (Petroleum) Cap 119 and Stamp Act Cap 34, and also the assessment of application of auditor license under Companies Act Cap 39.
  
  
  • Rates of tax imposed on companies are :
    
    
    • 30% for companies with limited liabilities;
    • 55% for companies producing oil and gas;
    • 20% on withholding tax charged on the interest under a charge, debenture or loan and paid to non-resident persons.
      
      
  • Stamp Duty is imposed on business documents such as mortgage, tenancy agreement, and transfers. The rates of duties are stipulated in the First Schedule of the Stamp Act and varies according to the type of instruments;
    
    
    • Mortgage: every $500 amount imposed is $1.00
    • Transfer: every $250 transferred amount imposed is $1.00
    • Tenancy Agreement: every $250 total annual rental amount imposed is $1.00
      
      
  • Issuance of Audit license for authorised auditors in Brunei Darussalam
    • Total audit firms registered in Brunei Darussalam is 12.
    • Annual License fee is $500.
      
      
• Negotiate Double Taxation Agreement and Bilateral Investment Treaty with other countries.
  
  
  • The Principles of Double Taxation Agreement
    
    
    • Encourage investment & trade between the two countries;
    • Lessen the burden of tax on companies when operating in two countries;
    • Enable Government institutions to operate in other countries without incurring tax liabilities;
    • Enable the exchange of information on tax matters.
      
      
  • The Status of Double Taxation Agreement
    
    
    • Signed - UK (1950)
    • Negotiated - Indonesia (1996)
    • Still under negotiation - Singapore (1997), Malaysia (1997), Thailand (1998), Germany (1998), Vietnam (1998), China (1998).
    • Proposed - Australia, France, Japan, South Africa, Philippines, Mauritius.
      
      
  • The Principles of Bilateral Investment Treaty
    
    
    • Protect Brunei Darussalam investments from expropriation and nationalisations by contracting countries;
    • Encourage investment and trade between the two countries;
    • Ensure the returns of investment and income remitted back to Brunei Darussalam;
    • Ensure appropriate channels to overcome the investment differences.
      
      
  • The Status of Bilateral Investment Treaty
    
    
    • Signed - ASEAN countries (ASEAN BIT) (1987), Germany (1998).
    • Negotiated - Oman (1997)
    • Still under negotiation - China (1997), France (1998), Iran (1998)
    • Proposed - UK, Australia, Belgium, Morocco, South Africa, South Korea, Uruguay, Sudan.
      
      
• The functions and responsibilities in coordinating international organisation and custom matters are:
  
  
  • Coordinate with the Royal Customs and Excise Department on matters arising from the Customs Act, Cap 36.
    
    
    • Import duty exemption ó diplomatic;
    • Partial refund of import duty for taxi and rented car (KSPS or R type);
    • Nomenclature tariff structure;
    • Participation by Customs personnel in ASEAN and International meetings.
      
      
    • Participation by Brunei Darussalam as a member in international Organisations (IMF, World Bank, ASEAN, Commonwealth, OIC, IDB, APEC, ASEM, ESCAP, UNDP and WCO).

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