Section 42A
Tax credit for contribution to Employee Trust
Where an employer makes a contribution to the Employee Trust established by section 6 of the Employee Trust Act (Chapter 167), credit at the rate of 10 per cent of the additional contribution so made (in excess of contribution made for the last year), shall be allowed against the tax payable by it in addition to the deductions allowed under sections 11 and 11E.
Tax credit on salaries paid to new employees 42AA.
(1)
Subject to subsection (2), where an employer incurred expenditure on payment of salary to its new employees, tax credit at the rate of 50 per cent of the expenditure on salaries so paid shall be allowed against the tax payable by it for the relevant year of assessment.
(2)
The tax credit shall be —
(a)
allowed in respect of new employees —
(i)
who are either citizens of Brunei Darussalam or permanent residents;
(ii)
whose gross salary, during the basis period, does not exceed to $3,000 per month; and
(iii)
whose corresponding amount of contribution has been paid to the Employee Trust established by section 6 of the Employee Trust Act (Chapter 167);
(b)
available for the initial period of 36 months during which the new employee continues to remain under the employment of the employer.
(3)
In this section, “new employee” means a person who has been unemployed for a period of at least one year immediately preceding the date of his employment with the employer claiming the tax credit.
Income Tax
B.L.R.O. 1/2024 81
Tax credit for training 42AB.
(1)
Subject to subsection (2), where an employer incurred expenditure during the basis period, on the training of its employees, tax credit shall be allowed against the tax payable by it for the relevant year of assessment.
(2)
The tax credit shall be equal to the amount of gross salary paid during the training period of employees —
(a)
who are citizens of Brunei Darussalam or permanent residents;
(b)
whose gross salary, during the basis period, does not exceed $2,000 per month; and
(c)
whose corresponding amount of contribution has been paid to the Employee Trust established by section 6 of the
Employee Trust Act (Chapter 167).
(3)
In this section, “training” means education or instruction provided by a university, college, polytechnic, technical school or institution, which is approved, recognised or registered by the relevant authority or body, but does not include in-house training.