Bahrain, Georgia ink key taxation deal
Manama, July 19, 2011
An agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital (DTA) was signed yesterday (July 18) between the governments of Bahrain and Georgia.
The agreement was signed by Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa and Georgian Ambassador Ekaterine Meiering-Mikadze.
The DTA will eliminate the double payment of taxes by nationals and enterprises of each of the two countries in the territory of the other.
It covers all taxes imposed on total income, total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
The DTA represents Bahrain's 16th agreement which complies with the Standards on Exchange of Tax Information set by the Organisation for Economic Co-operation and Development and endorsed by the G20.
Bahrain has signed a total of 32 DTAs.
Shaikh Ahmed welcomed the signing as a step forward to further develop economic co-operation and joint investment between the two countries.
He also commended the crucial role of the DTAs in providing the appropriate economic environment to attract more foreign direct investment and enhance the competitiveness of the national economy.
"The signing of this kind of agreement is an important step to the formation of a solid legal base to economic co-operation between our two countries as well as fostering joint ventures between the private sector in both sides," said Meiering-Mikadze. – TradeArabia News Service