Why hire in Brunei through an EOR

No income tax at all — a genuinely rare structure

Brunei charges no personal income tax on employment income whatsoever. Instead, employers and employees each contribute 8.5% of salary to a consolidated retirement scheme, following a 2023 reform that merged two older pension schemes into one. There's also a foreign-worker quota system to navigate — employers are allocated a specific number of permits for non-citizen hires.

No entity required

Employ staff in Brunei without registering a company or running your own Employees' Trust Fund filings.

Genuinely no income tax

Brunei charges no personal income tax on employment income — one of very few countries where this is true.

Quota system navigated

Foreign hires require an allocated quota — we check this is available before you commit to a role.

Independent advice

We confirm the current SPK contribution structure before quoting — this consolidated two older schemes as recently as 2023.

Employer costs at a glance

Brunei's headline numbers

0%
Personal income tax on employment income — genuinely none, for citizens, residents, and foreign staff alike
8.5%
Employer retirement contribution on gross salary, matched by an equal 8.5% from the employee
18.5%
Corporate income tax rate — separate from anything relating to employee salaries

Employer costs explained

Why Brunei's real cost is simpler than it first appears

No income tax, genuinely

Brunei does not impose personal income tax on salaries, bonuses, or other employee compensation — there's no payroll tax in the traditional sense at all. This is a real structural feature of Brunei's tax system, not a temporary incentive, and it applies broadly to employment income.

A consolidated retirement scheme — 8.5% each side

Brunei previously ran two separate schemes — the Employees' Trust Fund (TAP) at 5%, and the Supplementary Contributory Pension (SCP) at 3.5% — each matched by the employee. A 2023 reform consolidated these into a single scheme (SPK) at a combined 8.5% for both employer and employee, with no salary ceiling on contributions. Bruneian citizens and permanent residents are covered; foreign workers' obligations depend on their specific permit terms.

The foreign-worker quota

Employers wishing to hire foreign nationals are allocated specific quotas permitting a set number of non-citizen employees. It's worth confirming an appropriate quota is genuinely available and suits the specific role and nationality of the person you want to hire, before committing to the position.

Employment basics

What's standard for a Brunei employment contract

Income tax

0% — none

No personal income tax applies to employment income in Brunei.

Retirement contribution (SPK)

8.5% employer, 8.5% employee

Consolidated in 2023 from the older separate TAP and SCP schemes, no salary ceiling.

Currency

Brunei dollar, 1:1 with SGD

Fixed parity with the Singapore dollar simplifies exchange-rate planning.

Foreign hires

Quota-allocated

Employers are given a specific permitted number of non-citizen hires.

Before you budget a Brunei hire

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Common questions

Hiring in Brunei, answered

Is it really true there's no income tax in Brunei?

Yes — Brunei imposes no personal income tax on employment income. It's a genuine structural feature of the country's tax system, not a temporary scheme or an incentive that expires.

Do foreign employees pay into the retirement scheme too?

The SPK scheme primarily covers Bruneian citizens and permanent residents — whether it applies to a specific foreign hire depends on their permit terms, which we check for you before you commit.

Do I need a Brunei entity to hire someone there?

No — through an Employer of Record arrangement, we become the legal employer, handling SPK contributions and the foreign-worker quota process, while you keep full control of the person's day-to-day work.

Ready to talk about a Brunei hire?

Tell us the role and we'll give you the real cost — the zero income tax factored in — and the fastest compliant route.

Get a Brunei quote

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