The Kingdom of Bahrain and Czech Republic signed an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (DTAA). The agreement was signed in Prague between the two governments by Minister of Finance Shaikh Ahmed bin Mohammed Al Khalifa and his Czech counterpart Miroslav Kalousek.
The DTAA will eliminate the double payment of taxes by nationals and enterprises of each of the two countries in the territory of the other. It applies to taxes on income irrespective of the manner in which they are levied and covers all taxes imposed on total income, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
The DTAA represents Bahrain’s 14th agreement which complies with the Standard on Exchange of Tax Information set by the Organisation for Economic Co-operation and Development (OECD) and endorsed by the G20. Bahrain has signed a total of 30 DTAAs.
The Minister of Finance welcomed the signing “as a further step forward to enhancing economic co-operation and joint investment between the Kingdom of Bahrain and the Czech Republic and as complimenting the Agreement for the Promotion and Protection of Investments signed by the two countries on the 15th of October 2007”.
The signing ceremony was attended by a number of MOF and Czech Republic officials.