(Last updated: 18 May 2011)

Business etiquette

Business tips

Business practices:

• Avoid visiting Brunei around Hari Raya (at the end of the Muslim fasting month) or Chinese New Year. These holidays fall on a different month every year and many businesses are closed at this time.
• When inviting Bruneians to lunch or dinner, consider their ethnic origins (eg. pork is forbidden among Muslims). As an option, you may find it easier to ask your guests to recommend a restaurant.
• Avoid conversations concerning sex, religion or politics.
• When entering a Malay or Chinese house, shoes should be taken off and left outside.

Social etiquette with Brunei Malays:

• It is considered impolite to show the soles of your feet when seated opposite a person. Do not cross your legs, but keep your feet flat on the floor.
• Use your right hand at all times when giving or receiving.
• Avoid touching and pointing. If you need to point, use the thumb of your right hand with your other fingers clenched.
• Public displays of affection such as hugging and kissing are not usual in Brunei. It is not customary to shake hands with a member of the opposite sex. Wait for them to offer first.

Social etiquette with Brunei Chinese:

• When giving or receiving an item, such as a business card, it is polite to offer or receive the item with both hands.
• Avoid touching and pointing.
• Don’t sit until your host or hostess invites you to do so.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and non-tariff barriers

Tariff

Brunei has a low tariff regime and no personal income tax. Company tax is 55 per cent for the two oil and gas companies: Brunei Shell and Jasra Elf, and 30 per cent for other companies.

Brunei is a member of the Association of South East Asian Nations (ASEAN). Preferential rates are applied to imports from other ASEAN members.

As a signatory to the ASEAN, Australia, New Zealand Free Trade Agreement (AANZFTA), which entered into force on 1 January 2010, AANZFTA is expected to deliver new opportunities and create greater certainty across the board for Australian exporters and investors in Brunei.

Australian exporters can now access Austrade’s AANZFTA tariff finder. The tool provides an easy reference for Australian exporters who want to know what the applicable tariff rate is for their products under the AANZFTA.

Non-tariff barriers

Brunei has strict import regulations on halal, chilled or frozen meat. Halal beef is either supplied by local abattoirs or through an Australian-based company, Halaqah Sdn Bhd (formerly known as The Brunei Meat Export Company) a subsidiary of Jerambak Holdings Pty Ltd based in the Northern Territory.

Items that are permitted to enter Brunei without incurring custom duty:

• 200 cigarettes or 250g tobacco products
• 60ml of perfume
• 250ml eau de toilette
• Two bottles of liquor and 12 cans of beer

Alcohol must be declared at customs upon arrival.

Product certification, labelling and packaging

The Department of Health Services, Ministry of Health is one of the agencies responsible in controlling the importation of food into Brunei.

Labelling

Prepacked foods imported, sold and distributed are required to comply with labelling requirements as laid down under Regulation 9, Public Health (Food) Regulation, 2000. Labels containing information on packaged food is required to be  in a prominent and conspicuous position on the package. Language to be used on the label should be in Malay or English or translation to either one of these languages.

Generally, the particulars of the labelling requirement shall include:

• Name of food
• List of ingredient and its sources (including additive)
• Net weight/volume
• Date marking
• Storage instruction
• Name of country of origin, and
• Name and address of the local importer for imported food/ name and address of the manufacturer/ packer in the case of a food of local origin

Food traders and importers are required to comply with the Public Health (Food) Act 1998 and Public Health (Food), 2000 besides meeting the food import requirement. Application for Registration of food import approval is free. Registration Letter will be issued within 5 to 7 working days from date of application received provided that all the required details are furnished. This registration is subject to conditions applied within.

For further information on Food Import regulations, contact:

Head, Food Safety and Quality Control Division
Department of Health Services
Ministry of Health
Brunei Darussalam
Email: fsqc@moh.gov.bn
Web: www.moh.gov.bn
Tel: +673 2331 100
Fax: +673 2331 107

Setting up in Brunei

The Brunei Economic Development Board plays an important role of stimulating the growth, expansion and development of Brunei’s economy by promoting Brunei Darussalam as an investment destination.

The Board is also responsible for implementing government policies and preparing investment promotion plans, incentives and marketing strategies to attract foreign and local investments.

For further information on setting up in Brunei, contact:

The Brunei Economic Development Board
Block 2K, Bangunan Kerajaan
Jalan Ong Sum Ping
Bandar Seri Begawan BA1131
Brunei Darussalam
Tel: +673 2230 111
Fax: +673 2230 082
Web: www.bedb.com.bn
Email: info@bedb.com.bn

Taxation

Brunei has no personal income tax, no sales tax, payroll, manufacturing or export tax. Sole proprietorship and partnership businesses are not subject to income tax and approved foreign investors are not required to pay company tax for up to eight years.

Companies are subject to tax on the following types of income:

• Gains of profits from any trade, business or vocation
• Dividends received from companies not previously assessed for tax in Brunei
• Interest and discounts
• Rents, royalties, premiums and any other profits arising from properties

However, there is no capital gains tax where the Collector of Income Tax can establish that the gains form part of the normal trading activities – they then become taxable as revenue gains.

Banking and finance

There are 11 banks that provide full banking services in the country. The banks in Brunei are:

• Baiduri Bank Berhad
• Bank Islam Brunei Darussalam Berhad
• Citibank NA
• HSBC
• Malayan Banking Berhad
• OCBC
• RHB Bank Berhad
• Royal Bank of Canada
• Standard Chartered Bank
• Tabung Amanah Islam Brunei
• United Overseas Bank