Tax Haven Brunei

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As a tax haven Brunei has positioned itself as a progressive international financial centre. This the country has achieved by putting in place the right mechanisms, laws and personnel to secure the success of the country’s strides towards becoming a leading international financial centre. The government of Brunei has also focused on developing the tourism sector which too can help generate revenue and the diversification process.

In creating its competitive edge, tax haven Brunei provides a broad scope of financial and banking services which are geared towards diversifying the country’s economy in addition to its established crude oil and natural gas exporting sectors. This provides for much more exposure of Brunei as a tax haven, favorable investment and business hub and dominant figure in the global economy.

Country Overview

Tax haven Brunei is formerly known as Brunei Darussalam and has two separated regions which cover a total area of about 5,766 kilometers. 2008 estimates show that tax haven Brunei has a population of 381,371, while the GDO is roughly $19,640 according to 2007 figures. The currency used is the Brunei dollar (BND) and the time zone is UTC+8.

A large segment of residents and professionals in tax haven Brunei come from areas such as the Philippines, Indonesia, India, the U.S, Britain, Thailand and Bangladesh. The principal religion is Islam. The main language spoken in tax haven Brunei is Malay, although Chinese and English are also common used for communicating. There are also indigenous languages such as the Iban and Tutong, which are spoken by about 20,000 people each.

Tax haven Brunei is a member of the Asia-Pacific Economic Cooperation (APEC), United Nations, Organisation of the Islamic Conference and the Commonwealth.

Brunei Fiscal Incentives and Advantages

As a tax haven Brunei offshore many advantages including:

  • No personal income tax
  • Low cost of living
  • No exchange controls
  • Economic and political stability

Brunei Legislative Framework

The political system in tax haven Brunei comes from a combination of the written Constitution and Malay Islamic Monarchy. Tax haven Brunei aims to establish the country as a diversified and self-sustainable economy. The offshore legislative measures taken by the Brunei International Financial Centre seek to promote tax haven Brunei as a properly regulated and supervised regime in compliance with international policy, developed and modernized hub for financial services and a contributor towards job creation especially for persons trained in the field of finance. In expanding as an international financial centre, tax haven Brunei developed into a ‘dual jurisdiction’ in that its international corporate vehicles were designed from a combination of both English and local legal policies.

Offshore legislation in Brunei as a tax haven serves as the backbone of the various types of entities that are formed in the jurisdiction; some of which are as follows:

  • Registered Agents and Trustees Licensing Order, 2000
  • International Business Companies Order, 2000
  • International Limited Partnerships Order, 2000
  • Securities Order
  • International Insurance and Takaful Order, 2002
  • Money Laundering Order, 2000
  • International Trusts Order, 2000
  • International Banking Order, 2000

Brunei Offshore financial services

Tax haven Brunei offers a broad range of offshore financial services which are provided by professionals in an environment that is well regulated. Offshore services and activities are carried out in the Brunei International Financial Centre. The services offered in Brunei as a tax haven include:

  • International Limited Partnerships (ILPs)
  • International Business Companies
  • Mutual Funds
  • International Offshore Banks
  • International Insurance and Takaful
  • International Trusts
  • Securities
  • International Business Companies (IBCs)

Brunei Offshore Business Entities:

  • Brunei International Limited Partnership
  • Brunei International Insurance and Takaful Order, 2002
  • Brunei International Banking
  • Brunei International Trust
  • Brunei International Business Company

Brunei International Financial Centre

The Brunei International Financial Centre was created to ensure that offshore and activities in tax Brunei took place in an environment that promoted the good image of the country, is conducive to growth and attractive to foreign residents wishing to move to Brunei or invest.

The services offered by the BIFC include:

  • Issuance of International Islamic Banking License
  • Mutual Funds
  • Trust administration
  • Issuance of International Banking Licenses
  • Issuance of International Insurance Licenses
  • Incorporation of International Limited Partnerships
  • Incorporation of International Business Companies
  • Securities

The BIFC of tax haven Brunei is equipped with a trained team of securities experts, accountants, senior administrative personnel, lawyers and economists. The BIFC collaborates closely with the Registry, which serves as Registrar for IBCs and Limited Partnerships for administrative and privacy purposes. The BIFC seeks to usher tax haven Brunei into developing a ‘Sound and Dynamic Financial System’.

Recent Developments

At a media luncheon organised by the Canada High Commission in April 2009, the Royal bank of Canada expressed its interest in establishing a local entity Asset Management company in tax haven Brunei later down in the year. The Royal bank of Canada was the first bank to which an offshore banking licensing was issued under the Brunei International Financial Centre.

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