Brunei vs Micronesia
Tax systems side by side: income tax rates, corporate tax, VAT, withholding, special regimes and filing rules.
Overview
 BN
Brunei
|
 FM
Micronesia
|
|
|---|---|---|
| Tax system | Territorial | Territorial |
| Tax authority | Revenue Division, Ministry of Finance | Customs & Tax Administration, Department of Finance and Administration |
| Authority website | Visit | Visit |
| Data year | 2026 | 2026 |
At a glance
|
BN
Brunei
|
FM
Micronesia
|
|
|---|---|---|
| Top personal income tax | 0% | 10% |
| Effective top rate | 0% | 10% |
| Corporate tax rate | 18.5% | 3% |
| VAT / GST | 0% | — |
| Tax system | Territorial | Territorial |
| Tax treaties | 19 | 0 |
Income tax
|
BN
Brunei
|
FM
Micronesia
|
|
|---|---|---|
| Top rate | 0% | 10% |
| Effective top rate | 0% | 10% |
| Capital gains tax | 0% | — |
| Capital gains notes | No separate capital gains tax; gains are taxed as ordinary corporate income where the Act applies. | There is no separate national capital-gains schedule for individuals. Passive investment income such as interest and dividends is generally outside the wage tax; business receipts (including many returns on capital) are taxed through GRT when earned by a business. |
| Social security (employee) | 8.5% | — |
| Social security (employer) | 8.5% | — |
Withholding rates
|
BN
Brunei
|
FM
Micronesia
|
|
|---|---|---|
| Dividends | 0% | — |
| Interest | 2.5% | — |
| Royalties | 10% | — |
Other taxes
|
BN
Brunei
|
FM
Micronesia
|
|
|---|---|---|
| Corporate tax | 18.5% | 3% |
| Inheritance tax | — | — |
| Wealth tax | — | — |
Tax features
|
BN
Brunei
|
FM
Micronesia
|
|
|---|---|---|
| Personal income tax | No | Yes |
| Capital gains tax | No | No |
| Corporate tax | Yes | Yes |
| VAT / GST | No | No |
| Wealth tax | No | No |
| Inheritance tax | No | No |
| Exit tax | No | No |
| CFC rules | No | No |
| Digital services tax | No | No |
| Crypto-specific rules | No | No |
| Participation exemption | No | No |
| Territorial exemption | Yes | Yes |
Special regimes
|
BN
Brunei
|
FM
Micronesia
|
|
|---|---|---|
| Digital nomad tax regime | No | No |
| Non-dom regime | No | No |
Residency and filing
|
BN
Brunei
|
FM
Micronesia
|
|
|---|---|---|
| Residency threshold | 183 days | — |
| Filing deadline | June 30 | Gross revenue tax: last day of month after each calendar quarter (Apr 30, Jul 31, Oct 31, Jan 31) |
| Automatic extension | No | No |
| Residency rules | No PIT, so individual tax residency is not material for income tax. A company is subject to CIT if incorporated or registered under the Companies Act or managed and controlled in Brunei. Foreign-source income received by persons in Brunei only temporarily (not intending to establish residence, and not present for six months or more in the year of assessment) may be exempt under section 10(3). | Taxation follows the type of income and source rules in Title 54 rather than a single day-count residency test. Wages and salaries are taxed when received by an employee; services performed partly in and partly outside the FSM are presumed fully FSM-source unless apportioned (§124). Businesses apportion GRT when operating inside and outside the FSM (§142). |
| Filing notes | Companies must file estimated chargeable income within three months after the accounting period ends and file the annual income tax return by 30 June for the year of assessment (calendar-year basis unless changed with MOF approval). Tax on assessment is due within 30 days of the notice of assessment. | Employers withhold wage tax at source. Businesses pay GRT quarterly, due on the last day of the month following each calendar quarter. Major corporations file annual income-tax returns under Chapter 3. |