Capital Gains Taxation in Brunei Darussalam
Brunei Darussalam's tax system does not impose a capital gains tax on individuals or businesses. As a result, any profits or gains derived from the sale or disposal of capital assets, such as real estate, stocks, bonds, or business assets, are not subject to taxation. This tax exemption applies regardless of the holding period or the nature of the asset.
The absence of a capital gains tax in Brunei Darussalam is a deliberate policy decision aimed at fostering economic growth, attracting foreign investment, and encouraging entrepreneurship. By eliminating the tax burden on capital gains, the government intends to stimulate investment and promote the development of the private sector.
While there is no specific legal framework governing capital gains taxation in Brunei Darussalam, the general principles of income taxation are outlined in the Income Tax Order, 2000. This legislation defines taxable income as "the total income of a person from all sources in or derived from Brunei Darussalam." However, capital gains are explicitly excluded from the definition of taxable income, ensuring that they are not subject to taxation.
The absence of a capital gains tax in Brunei Darussalam provides a favorable environment for investors and businesses. It eliminates the need for complex tax calculations and reduces the overall tax burden on individuals and corporations. This tax exemption contributes to the country's attractiveness as an investment destination and supports the government's efforts to diversify the economy and promote sustainable growth.
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