Bahrain inks deals to avoid double taxation
Manama, April 26, 2010
Bahrain has signed a number of agreements and a MoU with Bermuda, Seychelles and International Bank for Reconstruction and Development (IBRD), to avoid double taxation.
Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa signed them with Bermuda's Minister of Labour, Home Affairs and Housing David A Burch, Seychelles Finance Minister Danny Faure and World Bank managing director Juan Daboub, during a visit to the US.
A deal to avoid double taxation and prevent evasion of income tax and an MoU on economic, trade and technical co-operation were signed with Bermuda.
The deal eliminates double payment of taxes by nationals and enterprises of each country in the territory of the other and applies to taxes on income and capital imposed by either nation or its political subdivisions or local authorities, irrespective of the manner in which they are levied.
According to the MoU, both sides will seek to develop and strengthen co-operation in financial and professional services, trade, industry, construction, agriculture, transport, telecommunications, education, tourism and investment.
A joint economic committee of representatives from both sides will be set up to co-ordinate and promote economic, trade and technical co-operation.
A similar agreement was signed with Seychelles to eliminate double payment of taxes by nationals and enterprises of each country in the territory of the other.
It also applies to taxes on income and capital imposed on behalf of each country, irrespective of the manner in which they are levied and regards as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property.
A framework agreement with the IBRD to enhance co-operation was also signed. With these, the kingdom has signed 31 deals to avoid double taxation, of which 20 are in effect and comply with the exchange of tax information standards set by Organisation for Economic Co-operation and Development and endorsed by the G20 London Summit in April last year.-TradeArabia News Service