Section 10
Income exempted
(1)
There shall be exempt from tax —
(a)
the official emoluments received by His Majesty the
Sultan and Yang Di-Pertuan;
(b)
the income of any organisation exempted from payment of tax under or by order made under any written law for the time being in force in Brunei Darussalam relating to the extension of diplomatic privileges and the income of any officer of any such organisation or any other person exempted from payment of tax by order made under any such law;
(c)
the official emoluments of consuls-general, consuls, vice-consuls and persons employed on the staff of any consulate-general or consulate, who are subjects or citizens of the
State which they represent, but only to the extent to which reciprocal treatment is accorded by the State which they represent to Brunei Darussalam consular officers;
(d)
(Omitted);
(e)
the income of any municipal or local authority or other similar authority constituted by or under any written law for the time being in force;
(f)
the income of any charitable institution or of any body or persons or trust established for charitable purposes only:
Provided that where a trade or business is carried on by such institution, body of persons or trust, the income derived from such trade or business shall be exempt from tax only if such income is applied solely for charitable purposes and either —
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(i)
the trade or business is exercised in the course of the actual carrying out of a primary purpose of such institution, body of persons or trust; or
(ii)
the work in connection with the trade or business is mainly carried on by persons for whose benefit such institution, body of persons or trust was established;
(g)
sums received by way of commutation of pensions;
(h)
sums received by way of retiring or death gratuities or as consolidated compensation for death or injuries;
(i)
sums withdrawn by individuals on retirement from any provident society or fund approved by the Collector under section 11(1)(f);
(j)
wound and disability pensions granted to members of the
Royal Brunei Armed Forces or of the Brunei Volunteer Force or the
Commonwealth forces, and pensions granted to dependent relatives of any such member killed on war service and disability pensions granted to members of civil defence organisations in
Brunei Darussalam in respect of war service injuries;
(k)
the investment income of any pension or provident society or fund approved by the Collector under the provisions of section 11(1)(f);
(l)
gains or profits from the business of shipowner or charterer or of air transport carried on by a person not resident in
Brunei Darussalam:
Provided that —
(i)
the Collector is satisfied that an equivalent exemption from tax is granted by the country in which such person is resident to persons resident in
Brunei Darussalam;
(ii)
a person is deemed to be resident in that country only in which the central management and control of his business are exercised.
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(2)
The Minister, with the approval of His Majesty the Sultan and
Yang Di-Pertuan may, by public notification, provide that the interest payable on any loan charged on the public revenue of Brunei Darussalam shall be exempt from tax, either generally or in respect of interest payable to persons not resident in Brunei Darussalam, and such interest shall as from the date and to the extent specified by such notification be exempt accordingly.
(3)
There shall be exempt from tax any income arising from sources outside Brunei Darussalam and received therein by any person who is in Brunei Darussalam for some temporary purpose only and not with any intent to establish his residence therein and who has not actually resided in
Brunei Darussalam at one or more times for a period equal in the whole to 6 months in the year of assessment.
(4)
There shall be exempt from tax any income of a person relevant to year of assessment 2015 and the subsequent years of assessment if its gross sales or turnover during the basis period does not exceed $1,000,000.
(5)
For the purpose of subsection (4), gross sales or turnover include revenues from the sale of goods, rendering of services, interests, royalties and dividends.