Switzerland and Bahrain agree text of double tax pact
23 May 2016
Bahrain and Switzerland have agreed to increase economic and trade relations and initialed a double tax agreement during an official working visit on May 12 by Bahrain's King, Hamad bin Isa Al Khalifa, reports Tax News.
Talks covered cooperation in international organizations; strengthening economic relations, particularly in light of the free trade agreement between European Free Trade Association states and the Gulf Cooperation Council that went into force in July 2014; and regional issues.
A double tax agreement was initialed to ensure that income from persons engaging in trade and investment is not taxed twice. Once in force, the agreement will allocate taxing rights to the two countries and may reduce or eliminate withholding tax on cross border income.
The two nations' trade promotion agencies, Switzerland Global Enterprise and the Bahrain Economic Development Board, agreed to continue recent discussions on collaborative work.