- MANAMA: Bahrain and the Isle of Man government on Thursday signed an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (DTA) and a memorandum of understanding (MoU) on economic, trade and technical Cooperation.
Bahrain's Minister of Finance Shaikh Ahmed bin Mohammed Al-Khalifa and Isle of Man's Treasury Minister Anne Craine signed the agreement.
The DTA will comprehensively address taxation issues arising in relation to the flow of business and any movement of people between Bahrain and the Isle of Man. It closely follows the double taxation treaty model published by the Organization for Economic Co-operation and Development (OECD).
The MoU is a detailed declaration that the two governments intend to work closely together to facilitate the development of bilateral economic activity on the basis of equity and mutual benefit. A Joint Economic Committee consisting of representatives of both sides will be set up to monitor the implementation of the MoU and develop and evaluate proposals on the implementation of its provisions.
The finance minister said the signing was a clear demonstration of the willingness of both Bahrain and the Isle of Man to develop further their investment and economic ties and stimulate initiatives in these areas. "Given that Bahrain and the Isle of Man are members of the Global Forum on Transparency and Exchange of Information for Tax Purposes, the DTA will certainly encourage transparency and exchange of information for tax purposes," he said.
"I was delighted to be invited to Bahrain for the signing of these two important agreements. Bahrain is a key financial hub in the Middle East, and today's agreements will greatly facilitate the development of business and investment opportunities between Bahrain and the Isle of Man," said Craine. Ministry of Finance (MOF) Undersecretary Aref S. Khamis and MOF and Isle of Man treasury officials attended the event.
The DTA signed with the Isle of Man is Bahrain's 23rd DTA, which contains an article on exchange of information, which follows the international standard on transparency and exchange of information for tax purposes adopted by the UN, OECD and G20. Currently, Bahrain has a total of 29 signed DTAs of which 21 are in force, 13 of which meet the international standards.