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Bahrain And UK Sign DTA,
by Lorys Charalambous, Tax-News.com, Cyprus
Thursday, March 11, 2010
The Kingdom of Bahrain’s Minister of Finance, Shaikh Ahmed bin Mohammed
Al Khalifa, and UK ambassador, Jamie Bowden, signed
a comprehensive double taxation agreement (DTA) between the two countries in
Manama on March 10.
The new DTA generally follows the Organisation for Economic
Co-operation and Development (OECD) model double taxation convention, including
the internationally-agreed OECD standard for the provision on exchange of information.
There will also be zero rates of withholding tax on dividends (except for real
estate investment trusts) and on royalties; and a zero rate of withholding tax
on interest but with a provision to ensure the benefits of the interest article
can only flow to residents of the other state.
The DTA is a new addition to the 27 similar agreements already signed by the
Kingdom of Bahrain. It will enter into force once both countries have completed
their legislative procedures, and its provisions will then take effect from
the next calendar year.
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