Investment in South East Asia. Policy and Laws by Paul J Davidson, B. Eng., LL.B., LL.M., and Franca

By Paul J Davidson, B. Eng., LL.B., LL.M., and Franca Ciambella, B. Corn., L.L.L. (Eds.)

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Labour Relations 4. 43 The Labour (Immigrant Workers’ Employment License) Act Brunei Darussalam is very dependent on migrant workers, both skilled and unskilled, for the manpower needed to support its economy. About 40 per cent of the local labour force of approximately 3 1,000 works for the Government while a further 8 per cent are employed by Brunei Shell. Both of these employers provide higher wages and fringe benefits than most private businesses. However, the Brunei government is concerned about the potential social problems that could result from a large influx of foreign workers and, therefore, the numbers of migrants are controlled.

Such concessions may be obtained from the Economic Development Board. E. TAX STRUCTURE 1. Individuals Brunei Darussalam does not levy personal income tax. 2. Partnerships A partnership is not subject to tax in Brunei Darussalam as the partnership’s income is apportioned to the individual partners who are not subject to tax. 3. Companies The Income Tax Act, 1949 distinguishes between resident and nonresident companies for tax purposes. A resident company is one which has its central management and control exercised in Brunei Darussalam.

A foreign company may establish a regional representative office, domiciled in one of Indonesia’s main cities. Its activity is limited to supervise and coordinate the business of its principal and branches, covering two or more countries in the region, however, it is not allowed to make any transaction with companies or persons in Indonesia either for export or import or for domestic trading. It may: (1) obtain work permits for expatriate managers; ( 2 ) obtain multiple entry visas for its expatriate personnel as well as exemption from exit tax.

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