UK- Bahrain Tax agreement
A new Double Taxation Agreement (DTA) between the UK and the Kingdom of Bahrain was recently signed in the Bahraini capital, Manama.
The DTA will allow for the exchange of tax-related information and HMRC hopes it will help combat tax avoidance and money laundering involving both countries. The arrangement will apply to taxpayers who are resident in either the UK, the Kingdom of Bahrain or both jurisdictions.
The exchange of information provisions meets the OECD standards for the exchange of information. The DTA also includes provisions relating to withholding tax. This is the first DTA to be signed between the UK and the Kingdom of Bahrain.
The DTA will take effect once both countries have finalised the legislative procedures needed to give the arrangement the force of law.