Brunei
Executive Summary
The Islamic Sultanate of Brunei Darussalam is close to vital sea
lanes running through the South China
Sea linking the Indian and Pacific Oceans.
The climate is tropical. The capital
is Bandar Seri Begawan. The country
consists of two parts physically separated
by a finger of Malaysian territory.
Brunei's major natural resources are
petroleum, natural gas and timber.
Brunei was a powerful state from the 16th to the 19th century, but
in 1888 it became a British protectorate.
Britain retained responsibility for
the state's defense and foreign affairs
until 1984, when the sultanate became
fully independent.
The population was estimated at 374,577 in July, 2007. The official religion is Islamic. Malay is the official language;
English and Chinese are also spoken.
Brunei
is a constitutional sultanate. The Sultan
and Prime Minister is Sir Hassnal Bolkiah
(since 5 October 1967).
Civil law is based on English common law; for Muslims, Islamic Shari'a
law supersedes civil law in a number
of areas.
GDP at purchasing power parity was $9.557 billion
in 2006, and GDP per head at
purchasing power parity in
2005 was $25,600
- on a par with the GDP of the EU prior
to enlargement. The government runs
a surplus. The currency is the Bruneian
dollar; in 2004 1 Bruneian dollar was
worth 1.6902 US dollars.
In 2000, Brunei instituted a tax-privileged International Financial
Centre (BIFC) providing regimes for
banking, insurance, investment funds
and trust management. Accordingly, Brunei
is a "dual jurisdiction", whereby the
international legislation offers "offshore"
facilities, alongside the usual range
of "domestic" legislation drawn from
that of England and Wales. Legislation
passed in 2000 introduced a number of
additional corporate forms which are
available to business operations in
the International Financial Centre,
including International Business Companies,
International Limited Partnerships,
and International Trusts.
In
Brunei there is no personal income tax,
and there are no export, sales, payroll
or manufacturing taxes. Sole-proprietorship
and partnership businesses are not subject
to income tax. The main tax for resident
('domestic') companies is corporate
tax, but this does not apply in the
BIFC.
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