The Double Taxation Relief and International Tax Enforcement (Brunei Darussalam) Order 2013

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains an Agreement and Protocol (“the Arrangements”) which further amend an arrangement between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Brunei Darussalam for the Avoidance of Double Taxation with Respect to Taxes on Income and the Prevention of Fiscal Evasion (“the 1950 Arrangement”). The 1950 Arrangement was scheduled to the Double Taxation Relief (Taxes on Income) (Brunei) Order (S.I. 1950/1977) and previously amended by the supplementary arrangements scheduled to the Double Taxation Relief (Taxes on Income) (Brunei) Orders S.I.1968/306 and S.I 1973/2098. This Order brings the Arrangements into effect.

The 1950 Arrangement aims to eliminate the double taxation of income arising in one country and paid to residents of the other country. It does this by allocating the taxing rights that each country has under its domestic law over the same income, and/or by providing relief from double taxation. It also has specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement. The Arrangements continue this approach.

The Arrangements make a small number of amendments to the 1950 Arrangement, bringing it up to date as regards the territorial scope and the definitions of the competent authorities. They also introduce a new Exchange of Information Article which brings the 1950 Arrangement into line with the approach adopted in the Organisation for Economic Cooperation and Development’s (“OECD”) Model Tax Convention on Income and on Capital.

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the Arrangements.

The Arrangements will enter into force on the date of the later of the notifications by each country of the completion of its legislative procedures and will take effect from that date.

The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

A Tax Information and Impact Note has not been prepared for this Order as it gives effect to a previously announced policy to enact a double taxation agreement.