TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
TheFinanceStory
No Result
View All Result
  • Login
  • Register
Book 1:1 session with industry experts!
  TFS Gulf
  • All categories
    • inPractice
    • Entrepreneur Story
    • Finance Leaders
    • Videos
The finance story
No Result
View All Result
  • Login
  • Register
Book 1:1 session with industry experts!
The Finance Story
No Result
View All Result

Bahrain-UAE Double Tax Treaty to be signed in 2024: Exciting news for businesses in both countries

On 5th February, the Bahrain Government authorized the signing of a double tax treaty with the United Arab Emirates. News comes right before Bahrain's Corporate Tax.

The Finance Story by The Finance Story
Published date: 10th February, 2024
Last edited date: 12th February, 2024
SHARE (0)
Share on FacebookShare on Twitter
  • The Bahrain Cabinet has given its approval for the signing of an income tax treaty with the United Arab Emirates.
  • Some experts have long anticipated this move, especially considering Bahrain’s plans to introduce Corporate Tax soon.
  • This treaty holds great importance as it could significantly boost businesses operating in both countries.

Bahrain to eliminate double taxation with UAE

On 5th February 2024, the Bahrain Cabinet officially gave its approval for a tax treaty with the United Arab Emirates.

This treaty is the first of its kind between the two countries. Its purpose is to prevent double taxation and discourage fiscal evasion for businesses and individuals operating in both nations.

Taxes to be covered in the treaty

The double tax avoidance agreement includes,

  • Income taxes
  • Withholding taxes and other related taxes

However, the exact terms of the treaty have not been made public yet.

Current status

The treaty is yet to come into effect.

The UAE and Bahrain have to first sign the treaty and complete their own ratification processes.

What’s a Double Taxation Avoidance Agreement?

A double-taxation avoidance agreement (DTAA) is an agreement between two countries to avoid or reduce the taxation of the same income or asset by both countries.

This negatively impacts the flow of goods, services, capital, technology transfer, and trade between the two countries.

Bahrain has double tax treaties (DTTs) with these countries as of 2023.

The UAE has double tax treaties (DTTs) with these countries as of 2023.

How it will help the two countries

  1. Facilitate Trade and Investment: The Double Tax Treaty (DTT) can make cross-border transactions more attractive and encourage trade and investment between Bahrain and the UAE, two closely linked economies.
  2. Attract Companies: With the UAE having implemented Corporate Income Tax (“CIT”) in June 2023, companies might hesitate to do business there due to potential double taxation in both countries. Having a DTT in place can provide clarity and assurance, making Bahrain a more attractive alternative for these companies.
  3. Political and Economic Ties: Signing a DTT demonstrates this commitment and strengthens their bilateral relationship.

Bahrain’s Corporate Tax to be implemented

News of Bahrain’s DTT with UAE emerges just before the country is scheduled to introduce Corporate Income Tax (“CIT”).

The Bahrain government aims to present the CIT law drafts to the legislative authority in March 2024.

This step brings Bahrain in line with other GCC countries that have already adopted a comprehensive CIT.

Wrapping up

This agreement is considered a significant development for regional economic cooperation and could potentially boost cross-border investments and trade between Bahrain and the UAE.

The Finance Story

The Finance Story

Recommended for you

Deloitte to add hundreds of tech jobs across the UK, over the next 3 years.
Big 4

Deloitte to add hundreds of tech jobs in UK

25th May, 2025 | 2 mins read
JP Morgan may slash over 10% of operations workforce
AI in Finance

JP Morgan may slash over 10% of operations workforce

23rd May, 2025 | 2 mins read
EY in trouble for audit failure of NMC Health: Faces £2 Billion lawsuit
Accounting & Consulting services

EY in trouble for audit failure of NMC Health: Faces £2 Billion lawsuit

22nd May, 2025 | 3 mins read
Randstad India CFO says executive hiring booming
Hiring

Randstad India CFO says executive hiring booming

22nd May, 2025 | 2 mins read
FTI Consulting taps Antoine Nasr to lead Middle East Business
Dubai

FTI Consulting doubles down on the Middle East

21st May, 2025 | 3 mins read
Microsoft fires 6000 employees...To sharpen focus on AI
News

Microsoft fires 6000 employees…To sharpen focus on AI

20th May, 2025 | 4 mins read
Next Post
Tax job market in India is booming: This recruiter shares trends, opportunities & skills for success

Tax Talent Market in India: What To Expect?

Start conversation Cancel reply

Your email address will not be published. Required fields are marked *

1:1 career advice platform

  • Manager

    Investment Banking (Front Office) at HDFC Bank.

  • Finance Director

    at Procter & Gamble (P&G)

  • Strategic Program & Ops Manager

    Risk and Internal Audit at Accenture

  • Vice President

    at Alcazar Capital

  • Manager ACR

    Accounting, Compliance and Reporting at EY

  • Senior Accountant

    at BDO Canada LLP

  • Regional Financial Coordinator and Project Manager

    at TotalEnergies

  • Accounts Manager

    at Sterling Perfumes Industries LLC (Fakhruddin Holdings)

BOOK 1:1 CALL

1:1 career advice platform

  • Manager ACR

    Accounting, Compliance and Reporting at EY

  • Senior Accountant

    at BDO Canada LLP

  • Regional Financial Coordinator and Project Manager

    at TotalEnergies

  • Accounts Manager

    at Sterling Perfumes Industries LLC (Fakhruddin Holdings)

BOOK 1:1 CALL
The Finance Story

The Finance Story empowers finance professionals—CFOs, consultants, accountants, tax experts, and bankers—to navigate critical market shifts, industry disruptions, and emerging technologies & trends.

How? We spotlight key opportunities in India and globally, equipping finance professionals with the insights and strategies to drive business growth, optimize decision-making, and position their companies at the forefront

Quick Links

  • Finance
  • Partners
  • Privacy and Policy
  • Terms of use

Follow us

  • /TheFinanceStory
  • @TheFinanceStory
  • /TheFinanceStory
  • @thefinancestory_com
  • TheFinanceStory

© 2022. The Finance Story. All Rights Reserved.

No Result
View All Result
  • TFS Gulf
  • Entrepreneur Story
  • Finance Leaders
  • Videos
  • Login
  • Sign Up

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies to personalize your experience. By continuing to visit this website you agree to our use of cookies.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?
Book 1:1 call with industry expert