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News > Double taxation agreement between Cyprus and Bahrain

Double taxation agreement between Cyprus and Bahrain

Double taxation agreement between Cyprus and Bahrain
9/9/2010

This Convention eliminates the double payment of taxes by nationals and enterprises of each country whilst resident in the territory of the other country. This applies with respect to taxes on income including gains from the alienation of movable or immovable property and taxes on the total amounts or salaries paid by enterprises, irrespective of the manner in which they are levied. This includes also any similar taxes that might come into effect after the signing of the Convention. In this regard the authorities of the respective country have to notify the other country of any such significant chances in their tax laws.

This agreement aims at facilitating trade exchanges and investment between Cyprus and Bahrain, particularly when trade between Cyprus and the main countries of the Gulf region doubled between 2004 and 2009. This trade related mainly to preparation of foodstuffs, plastics, machinery and mechanical appliances as well as printed books and newspapers.

During the signing of this Convention, Cyprus also confirmed its backing for an EU-Gulf trade agreement “especially because of the potential of increased trade and investment which may also lead to cooperation in other areas”, as Malta’s Finance Minister Tonio Fenech remarked.

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Double taxation agreement between Cyprus and Bahrain
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