Business Reforms in Brunei Darussalam
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Getting Electricity: The utility in Brunei Darussalam streamlined the processes of reviewing applications, and the time to issue an excavation permit was reduced. In addition, Brunei Darussalam increased the reliability of power supply by rolling out a Supervisory Control and Data Acquisition (SCADA) automatic energy management system for the monitoring of outages and the restoration of service.
Getting Credit: Brunei Darussalam strengthened access to credit by adopting a new insolvency law that contemplates protections for secured creditors during an automatic stay in reorganization proceedings. Brunei also improved access to credit information by beginning to distribute data from two utility companies.
Protecting Minority Investors: Brunei Darussalam strengthened minority investor protections by clarifying ownership and control structures, making it easier to sue directors in case of prejudicial related-party transactions, and allowing the rescission of related-party transactions that harm the company.
Paying Taxes: Brunei Darussalam made paying taxes easier by fully implementing an electronic system for filing and paying corporate income tax.
Enforcing Contracts: Brunei Darussalam made enforcing contracts easier by introducing an electronic filing system as well as a platform that allows users to pay court fees electronically.
Resolving Insolvency: Brunei Darussalam made resolving insolvency easier by adopting a new insolvency law that introduced a reorganization procedure and facilitated continuation of the debtor’s business during insolvency proceedings. Brunei Darussalam also introduced regulations for insolvency practitioners.
Starting a Business: Brunei Darussalam made starting a business easier by improving online procedures and simplifying registration and post registration requirements.
Paying Taxes: Brunei Darussalam made paying taxes easier and less costly for companies by merging contributions for the Employee Provident Fund and the Supplemental Pension Fund and increasing the capital allowance for industrial buildings. In addition, it reduced the corporate income tax rate, though it also abolished the partial exemption of income and introduced a flat rate.
Dealing with Construction Permits: Brunei Darussalam made dealing with construction permits easier by consolidating final inspections.
Paying Taxes: Brunei Darussalam made paying taxes easier for companies by allowing joint filing and payment of supplemental contributory pension and employee provident fund contributions and by introducing an online system for paying these 2 contributions.
Getting Credit: Brunei Darussalam improved access to credit information by establishing a public credit registry.
Dealing with Construction Permits: Brunei Darussalam made dealing with construction permits easier by creating a one-stop shop for preconstruction approvals.
Paying Taxes: Brunei Darussalam made paying taxes less costly for companies by reducing the profit tax rate.
Getting Electricity: Brunei Darussalam made getting electricity easier by establishing a one-stop shop and reducing the time required to obtain an excavation permit.
Starting a Business: Brunei Darussalam made starting a business easier by improving efficiency at the company registrar and implementing an electronic system for name searches.
Paying Taxes: Brunei Darussalam reduced the corporate income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%.
Trading across Borders: The introduction of an electronic customs system in Brunei Darussalam made trading easier.
Labor Market Regulation: Brunei Darussalam instituted mandatory minimum annual leave and reduced notice periods applicable in case of redundancy dismissals.
Paying Taxes: Brunei Darussalam made paying taxes less costly for companies by reducing the corporate income tax rate.