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First-time comprehensive agreement signed
A first-time comprehensive double taxation agreement between the UK and the Kingdom of Bahrain was signed in Manama on 10 March.
The treaty generally follows the Organisation for Economic Co-operation and Development (OECD) Model Double Taxation Convention. Important features include:
- the latest OECD provision on exchange of information;
- zero rate of withholding tax on dividends (except for REITs) and on royalties;
- 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 text of the agreement is available online and will be published by the Stationery Office as soon as it is presented to Parliament for approval.
The agreement enters into force once both countries have completed their legislative procedures; its provisions will then take effect from the next calendar year.
