Bahrain Tax Update

Analysis

Slim Gargouri provides an update on tax developments in Bahrain, examining increased cooperation between Brunei and Canada and the tax agreement between Bahrain and Barbados which came into effect on 1 January 2014. Slim Gargouri also examines the tax exchange information agreement between Bahrain and the Faroe Islands which came into effect on 1 January 2014.

Bahrain strengthens tax cooperation with Canada

On 4 February 2014, Bahrain issued Bahrain Decree No. 3/2014 enacting the tax information exchange agreement between Bahrain and Canada which was signed on 4 June 2013 in Ottawa.

The agreement covers the income tax payable under Bahrain Emiri Decree No. 22/1979 (“the oil tax”) and all taxes imposed or administered by the Canadian Government in Canada.

The agreement also applies to any identical or substantially similar taxes imposed after the agreement has been signed in addition to, or replacing the existing taxes. The competent authorities in the contracting states will notify each other of any significant changes made to their taxation laws.

Bahrain strengthens tax cooperation with Brunei