REV-01 — INCOME TAX RETURN (ITR) FILING

📘 REV-01 — INCOME TAX RETURN (ITR) FILING

Corporate Income Tax Submission – Brunei Darussalam

1. Overview

REV-01 — Income Tax Return (ITR) Filing refers to the annual corporate income tax compliance service for companies in Brunei Darussalam.
It involves the preparation and/or review of financial statements, computation of taxable income, and submission of the Income Tax Return to the Ministry of Finance and Economy (MOFE), Revenue Division for the relevant Year of Assessment (YA).

This service ensures the company remains compliant with the Income Tax Act (Cap. 35) and avoids penalties for late or incorrect filing.

2. Legal Requirement

Under the Income Tax Act (Cap. 35):

• Every company is required to file an annual Income Tax Return.
• Financial information submitted must be accurate and supported by proper records.
• Tax computations must follow applicable tax rules and allowances.
• Returns must be submitted within the prescribed deadline.
• Failure to comply may result in penalties, fines, or enforcement action.

3. Scope of Services

We assist clients with end-to-end tax compliance, including:

A. Financial Statement Preparation & Review

• Preparation of unaudited financial statements for tax filing purposes (where applicable)
• Review of audited financial statements provided by auditors
• Review of management accounts and general ledger
• Identification of tax-adjustable items and compliance gaps
• Ensuring consistency between financials and tax disclosures

B. Tax Filing & Compliance

• Preparation of corporate tax computation and supporting schedules
• Completion of Form ITR (MOFE prescribed format)
• Verification of company statutory details
• Online submission via MOFE Revenue Division Portal
• Liaison with MOFE on queries, clarifications, or revisions
• Post-filing follow-up until Notice of Assessment is issued

4. ITR Filing Process

1. Financial Review / Preparation
   • Preparation or review of financial statements for the basis period
   • Review of income, expenses, and tax adjustments
2. Tax Computation
   • Computation of chargeable income
   • Preparation of tax schedules and supporting documents
3. Form Preparation
   • Completion of Income Tax Return (ITR) in MOFE format
4. Online Submission
   • Upload and submission via MOFE Revenue Division Portal
5. MOFE Review
   • Follow-up on assessment or clarification requests

5. Due Dates & Timeline

📅 Annual Income Tax Return (ITR)

• Due by: 30 June each year for the relevant Year of Assessment (YA)

📅 Estimated Chargeable Income (ECI)

• Must be submitted within 3 months after the end of the accounting period

📅 Payment of Assessed Tax

• Payable within 30 days from the date of the Notice of Assessment issued by MOFE

⚠️ Timelines may vary if:

• Financial information is delayed
• MOFE raises additional queries
• There is a change in accounting period or business activity

6. Documents Required

• Audited or unaudited financial statements
• Management accounts (if required)
• General ledger and trial balance (for preparation/review)
• Tax computation and schedules
• Completed Form ITR (MOFE template)
• Company details (ROC number, address, business activities)
• Supporting invoices or schedules (if requested by MOFE)

7. Penalties & Consequences for Late / Non-Filing

Failure to submit the ITR by the statutory deadline may result in:

• Fine of up to BND 10,000
• Imprisonment up to 12 months (in default of payment)
• Court summons and enforcement action
• Requirement to file outstanding returns regardless of penalty
• Additional penalties and interest on unpaid tax
• Adverse compliance record with MOFE

⚠️ Even dormant or inactive companies may still be required to file, depending on circumstances.

8. Frequently Asked Questions (FAQ)

Q1: What is REV-01 used for?
It is used to file the company’s annual corporate Income Tax Return.

Q2: Who must file an ITR?
All companies with taxable income in Brunei Darussalam.

Q3: Are audited accounts mandatory?
Audited accounts are required where applicable; otherwise, unaudited accounts may be accepted for tax filing.

Q4: What is the Year of Assessment (YA)?
The YA is the tax year in which income is assessed, usually following the accounting period.

Q5: Can financial statements be prepared solely for tax filing?
Yes. Unaudited financial statements may be prepared specifically for tax compliance purposes.

Q6: Is physical presence required?
No. Filing can be completed remotely.

Q7: What happens after submission?
MOFE may issue an assessment or request further clarification.

Q8: Are penalties applicable for late filing?
Yes. Late or non-filing may attract fines and legal action.

Q9: Is tax payable at the time of filing?
No. Tax is payable after MOFE issues the assessment.

Q10: How long should records be retained?
Accounting and tax records should be kept for at least 7 years.

9. Final Stage / Follow-Up

• Await Notice of Assessment from MOFE
• Respond to any clarification requests
• Retain acknowledgment and filed ITR copy
• Arrange payment of assessed tax (if applicable)