Income Tax Act · s 42AA

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42AA.
Tax credit on salaries paid to new employees
(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

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s 42AATax credit on salaries paid to new employees

Tax credit on salaries paid to new employees

(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