Income tax agreement between Bahrain and Czech Republic: effective from January 2013

Bahrain and the Czech Republic, concluded, in Prague on the 24 May 2011, an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Entered into force on 10 April 2012, the provisions of the agreement apply from 1 January 2013.

The main provisions of the agreement are as follows:

Permanent establishment

The term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

The term "permanent establishment" likewise encompasses:

• a building site or a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than six months;