FAISAL KV

Payroll Compliance in Brunei Made Simple

Leave a Comment / HR & Payroll, Uncategorized

Ultimate Payroll Guide for Businesses in Brunei (2025 Edition) Managing payroll in Brunei isn’t just about disbursing salaries—it’s about staying legally compliant, safeguarding employee rights, and ensuring seamless operations. Whether you’re a startup, SME, or an established enterprise, this guide will walk you through everything you need to know about payroll management in Brunei, with a focus on the latest TAP and SCP contribution requirements. 📌 Why Payroll Management Matters in Brunei In Brunei, payroll is tightly regulated under the Employment Order 2009. A proper payroll system ensures: Timely and accurate salary disbursement TAP & SCP compliance Transparent deductions and benefits Legal adherence and audit readiness A well-structured payroll process not only saves time but also builds trust with your employees. 📋 Core Components of Payroll in Brunei 1. Employment Contracts All employees must be given written contracts stating job roles, wages, working hours, and leave entitlements. This ensures both clarity and legal compliance. 2. Salary Structure Your payroll must cover: Basic Salary Overtime Compensation Bonuses & Allowances Approved Deductions (e.g., absences, loans) 3. Payroll Frequency Salaries are usually paid monthly and must be disbursed within 7 days after month-end. Employers are advised to issue itemized payslips to all employees. 🧾 TAP and SCP Contributions – What Employers Need to Know Under Brunei law, employers must contribute to two retirement schemes: TAP (Tabung Amanah Pekerja) SCP (Supplementary Contributory Pension) These ensure financial security for employees post-retirement. 🔐 Employer Contribution Rates Salary Range (BND) Employer Contribution Rate (TAP + SCP) $500.00 and below Fixed at $57.50 $500.01 – $1,500.00 10.5% of wages (minimum $57.50) $1,500.01 – $2,800.00 9.5% $2,800.01 and above 8.5% 💡 There is no maximum cap anymore—contributions are calculated on the full salary. 👨‍💼 Employee Contribution Fixed at 8.5% of their basic wage Automatically deducted and submitted by the employer 📅 Contribution Deadline Employers must submit contributions by the 15th of the following month to avoid penalties. 💻 Use the e-Amanah portal to: Register as an employer Register new employees Update employee details Submit and track monthly contributions 💼 Defining “Wages” for Contribution Included in contributions: Basic salary Commissions (if no fixed salary) Allowances considered part of fixed pay Excluded from contributions: Overtime pay Bonuses Special or acting allowances Travelling and housing allowances Gratuity, retrenchment benefits, and service charges   🛠 Tools & Services to Simplify Payroll Managing payroll manually increases the risk of errors. Many businesses in Brunei now use professional payroll services or software for: Monthly salary automation TAP/SCP calculations Payslip generation Compliance reporting 💼 Want full payroll support in Brunei? Contact us for: Payroll Outsourcing Employee Contract Management Tax & Contribution Reports HR Documentation & Compliance For more information:  Contact us at : +673 8243820 | +673 8306820 6738243820 2701277 Email: info@merciumbn.com Visit Our Website: www.merciumbn.com Follow us on IG:   mercium_bn Visit us: No. 7, First Floor, Bng Hj Abd Rahman Spg 7, Kg Menglait, Jln Gadong, Brunei Darussalam  Written by: Faisal KvCorporate Compliance Specialist | Mercium Sdn Bhd, Brunei Darussalam Let’s Work Together to Build Your Success CONTACT US Facebook-f Instagram Youtube Linkedin

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Annual Return Filing Guide for Companies in Brunei

Leave a Comment / Corporate Secretarial Service

Comprehensive Guide to Annual Return Submission in Brunei If you’ve registered a company in Brunei (Sdn Bhd), filing your Annual Return is not just a formality—it’s a legal requirement under the Companies Act (Cap 39). Missing this step could lead to penalties, delays in renewals, or even the striking off of your company. Whether you’re a new business owner or simply want to make sure you’re compliant, here’s a straightforward guide to help you understand what an annual return is and how to stay on top of it. 📌 What Is an Annual Return? An Annual Return is a document that provides updated information about your company, such as: Company name and registration number Principal business activities Company address Directors and shareholders Share structure Date of AGM (if applicable) 👉 It is not the same as your tax return. The annual return is filed with the Registrar of Companies and Business Names (ROCBN), not the Revenue Division. 📅 When Must It Be Filed? You must file the annual return: Once every year Within 30 days of your company’s anniversary date of incorporation ⏰ Missing the deadline may result in late fees or the company being marked as non-compliant. 🧾 Why Is Filing Important? Filing your annual return: Keeps your company legally active and in good standing Ensures your company details are up-to-date with ROCBN Is often required for banking, licensing, or tender applications Avoids penalties or possible deregistration ✅ What You Need to Prepare Latest company details (directors, shareholders, etc.) Updated registered office address (if changed) Details of shareholding and issued capital Confirmation of whether AGM was held or exempted 👨‍💼 Who Can File It? The filing can be done by: Company secretary Director (if the company does not have a secretary) Or your appointed business consultant Many business owners choose to engage a corporate service provider to ensure timely and accurate submissions.  Pro Tip: Always check your incorporation date and set a yearly reminder to avoid missing the 30-day deadline. Early filing helps with smoother renewals and keeps your company records compliant. Need Help Filing Your Annual Return? Our team can assist with: Preparing and submitting your Annual Return Updating company records Ensuring compliance with ROCBN regulations Contact us today for reliable support in managing your company obligations. ✍️ Written by: Faisal KvCorporate Compliance Specialist | Mercium Sdn Bhd, Brunei Darussalam For more information: 📞 Contact us at : +673 8243820 | +673 8306820📱 6738243820☎ 2701277 📩 Email: info@merciumbn.com 💻 Visit Our Website: www.merciumbn.com 💬 Follow us on IG: mercium_bn 📍 Visit us: No. 7, First Floor, Bng Hj Abd Rahman Spg 7, Kg Menglait, Jln Gadong, Brunei Darussalam Let’s Work Together to Build Your Success CONTACT US Facebook-f Instagram Youtube Linkedin

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Top 7 Tax Tips Every Business Owner in Brunei Should Know

Leave a Comment / Corporate Income Tax

Brunei Tax Tips: What Every Business Owner Needs to Know Whether you’re running a small startup or managing a well-established company in Brunei, understanding your tax responsibilities can help you avoid unnecessary penalties and improve your business’s financial health. Brunei’s tax system is relatively straightforward, but proper compliance is key. Here are 7 essential tax tips for businesses in Brunei to stay on the right side of the law—and maybe even save some money. 1. Know If You’re TaxableIn Brunei, there is no personal income tax, but it does levy corporate income tax on companies. If you are running a company (Sdn Bhd), you must: Annual filling of Income Tax Returns Pay tax on your net profits 💡 Tip: Don’t just assume your business is taxable. Seek professional advice to avoid expensive assumptions. 2. Know That You Need To File TaxesEven if your company did not make any profit or is dormant, all registered companies in Brunei are required to submit their yearly tax returns. Many small business owners fail to realize this simple responsibility, leading to penalties as a result of late or failed filings. 💡 Tip: You still need to file on time even if your company is dormant or had no sales. 3. Don’t Lose Sight of Employer ResponsibilitiesIf your business has employees, you are responsible for: SCP and TAP (Employee Provident Fund) contributions by month Preparing monthly payslips and payroll records Filing annual employer returns 💡 Tip: Not paying can incur penalties and impact your company’s standing with authorities. 4. Organizing the Receipts & DocumentsWhen faced with a tax audit in Brunei, you must present: Income receipts Expense invoices Bank statements Payment vouchers 💡 Tip: Just record everything digitally via cloud-based accounting software. This will save you a lot during tax times 힘move less work. 5. Claim What You CanExpenses related to legitimate businesses are deductible, such as: Staff salaries and training Rent and utilities Office supplies and equipment Marketing and advertising  ProTip: Your expenses need to be clearly related to the business and you need to document them responsibly. 6. You Have No Profit, But Do File On TimeYou ought to file your Income Tax Return – whether or not you had sales or profit. You will incur penalties for late submissions irrespective of your tax payable being zero.  Tip: Remember the deadline: You need to file your taxes by 30 June of the assessment year. 7. Know When to Reach Out for HelpTax laws are complex — especially when your business is growing, trading across borders, or undergoing restructuring. Here are some simple things you can do to navigate the situation: Hiring a local accountant or tax consultant can help you: Avoid penalties Deductible expenses. Plan ahead for tax season  Tip: If it’s been a while since you used it, invest a little in expert support so that you don’t end up spending thousands to recover your data in the long run ✅ Final WordThere’s more to staying compliant with Brunei’s tax rules than avoiding penalty—it’s also about running a smarter, more streamlined business. These tips can keep you organized, legally compliant, and financially ready to grow. 📞 Office: Brunei: 📈 Aid with tax filing, accounting, and payroll in Brunei?Reach out to our corporate advisory team today for a no-obligation consultation For more information: 📞 Contact us at : +673 8243820 | +673 8306820📱 6738243820 ☎ 2701277 📩 Email: info@merciumbn.com 💻 Visit Our Website: www.merciumbn.com 💬Follow us on IG: mercium_bn 📍 Visit us: No. 7, First Floor, Bng Hj Abd Rahman Spg 7, Kg Menglait, Jln Gadong, Brunei Darussalam ✍️ Written by: Faisal KvCorporate Compliance Specialist | Mercium Sdn Bhd, Brunei Darussalam Let’s Work Together to Build Your Success CONTACT US Facebook-f Instagram Youtube Linkedin

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Brunei Director Responsibilities

Leave a Comment / Business Licensing

A Business Owners Legal Guide Directors of companies in Brunei Darussalam have significant responsibilities in terms of the management and operation of companies. Their duties are clearly defined under the Companies Act (Cap. 39) and other applicable legislation. When you are appointed as a new director — or considering the role — it is important to know what you must do so you can comply and not put your personal assets at risk. 1. Fiduciary Duties Directors have fiduciary duties to the company, so must act: In good faith and in the company’s best interests; Honestly and forthrightly, free of any conflict of interest; Faithfully and prudently, not using their position to enrich themselves. If these duties are not adhered to, one could face legal action or disqualification. 2. Duty of Care and Skill A director must: Exercise due diligence, care and competence in a manner appropriate for the person’s position; From the information available, decide on the best course of action; Get expert advice when needed (such as legal, financial, or technical). This duty obliges directors to act responsibly in managing affairs of the company. 3. Statutory Duties Under the Companies Act In accordance with the Companies Act (Cap. 39), directors must: - Keep accurate books; Please file your Annual Returns with the Registrar of Companies & Business Names (ROCBN); Conduct Annual General Meetings (AGMs) as required; Reveal any conflict of interest on transactions involving the company; Do not commit any wrongful or fraudulent trading particularly in a situation where the company is also insolvent. 4. Employment & Immigration Compliance In the event that the company hires local or foreign workers, directors are obliged to ensure: - There are proper employment contracts; On-time salaries and statutory contributions; Labour Department regulations compliance; Work permits and employment passes for foreign workers. 5. Tax Obligations Directors must ensure that: The company submits tax return with Revenue Division, MOF; Correct and timely submission of withholding taxes, employee CPF/SCP, and other taxes as applicable; Any queries with the audit or investigation from the tax authority handled in an efficient and transparent way. 6. Business License Compliance Directors must ensure that: The company has valid business licenses from the relevant authorities; It keeps the authorities updated about any modification to nature of business, address or ownership; License renewal deadlines are met. 7. Liability and Penalties Penalties for breach of these duties may include: - Fines, penalties or disqualification from appointment as director; Personal liability for the debts of the business in cases of negligence or fraud; Criminal charges for egregious cases of willful misconduct or fraudulent activities. The seriousness of the role of a director in Brunei has serious legal implications. It is more than just a title — it includes actively participating in the company’s operations and ensuring compliance with statutory and regulatory requirements. Directors should remain informed and seek professional advice where needed, to ensure they meet their responsibilities and safeguard the reputation of the company. 📌 Is your company’s statutory compliance with the Brunei authorities well-managed?Expert corporate services, ROC filings and business advisory solutions. For more information: 📞 Contact us at : +673 8243820 | +673 8306820📱 6738243820☎ 2701277📩 Email: info@merciumbn.com💻 Visit Our Website: www.merciumbn.com💬 Follow us on IG:   mercium_bn📍 Visit us: No. 7, First Floor, Bng Hj Abd Rahman Spg 7, Kg Menglait, Jln Gadong, Brunei Darussalam ✍️ Written by: Faisal KvCorporate Compliance Specialist | Mercium Sdn Bhd, Brunei Darussalam Let’s Work Together to Build Your Success CONTACT US Facebook-f Instagram Youtube Linkedin

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EKK Licensing and Compliance

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Beauty and Health Businesses in Brunei: EKK Licensing, Compliance, and Beyond Brunei Darussalam’s beauty and health industry is governed by specific regulations to ensure quality, safety, and professionalism. This post will guide you through the EKK (Establismen Kecantikan dan Kesihatan) licensing requirements and also provide a broader look at other business regulations in Brunei. EKK Licensing and Compliance The Beauty and Health Establishments Order, 2016, outlines the rules for operating beauty and health establishments (EKK) in Brunei. A valid EKK license is required to offer services such as: Aerobics   Aromatherapy   Barber services   Slimming treatments   Cosmetics services   Facial and body treatments   Gymnasium facilities   Hair salons   Manicure and pedicure services   Massage services   Reflexology   Spas (including hot or cold pools)  Key EKK Regulations: Licensing: EKK licenses are valid for three (3) years and must be renewed.   License holders must notify authorities of changes in license details.   Licenses are not transferable.   Business Hours: Businesses must close on Fridays from 12:00 pm to 2:00 pm. Employee Rules: Employers must provide employee details to authorities.   Employees must undergo medical exams every two (2) years.   Local employees must be at least 20 years old; foreign employees 25-55 years old.   Employees must be able to communicate in Malay or English.   Employees must dress modestly and wear name tags. Operational Requirements: Establishments must be clean, safe, and well-lit.   Fire safety equipment must be provided.   Separate changing areas for male and female customers must be available. Prohibited Activities: EKKs cannot allow entry to individuals with infectious diseases.   EKKs cannot employ individuals with infectious diseases or those considered to be of “bad character”.   Inappropriate dress or behavior is prohibited.   Gender-specific treatment rules generally apply (male staff for male customers, etc.).   Animals are not allowed.   Obscene displays are prohibited.   Specific Massage Rules: These include gender-specific services, designated locations, and customer record-keeping.          Other Business Regulations in Brunei In addition to EKK-specific rules, businesses in Brunei must generally comply with the following: Business Registration: Businesses must register with the appropriate authorities .   Licensing and Permits: Businesses may need licenses/permits related to land use, environment, or specific industries .   Employment Regulations: These cover employment contracts, minimum wage, working hours, benefits, and workplace safety .   Financial Regulations: Businesses must comply with accounting standards and tax obligations .   Import/Export Regulations: Businesses involved in trade must follow customs and trade laws .   Consumer Protection: Laws protect consumers from unfair practices related to advertising, product safety, and contracts . For more information: 📞 Contact us at : +673 8243820 | +673 8306820📱 6738243820☎ 2701277📩 Email: info@merciumbn.com💻 Visit Our Website: www.merciumbn.com💬 Follow us on IG:   mercium_bn📍 Visit us: No. 7, First Floor, Bng Hj Abd Rahman Spg 7, Kg Menglait, Jln Gadong, Brunei Darussalam ✍️ Written by: Faisal KvCorporate Compliance Specialist | Mercium Sdn Bhd, Brunei Darussalam Let’s Work Together to Build Your Success CONTACT US Facebook-f Instagram Youtube Linkedin

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