Tax treaty between Bahrain and Seychelles: effective from January 2013

Signed on 24 April 2012, the tax agreement between Bahrain and Seychelles entered into force on 3 February 2012 and is effective from the 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" includes a building site or construction or assembly or installation project or supervisory activity connected therewith where such site, project or activity continues for a period of more than twelve months;

Dividends

Dividends paid by a company which is a resident of a contracting state to a resident of the other contracting state shall be taxable only in that other state.

Income from debt-claims

Income from debt-claims arising in a contracting state and paid to a resident of the other contracting state shall be taxable only in that other state.

Royalties