Manama: Bahrain and Malta have signed a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The convention, signed by Shaikh Ahmad Bin Mohammad Al Khalifa, Bahrain Minister of Finance, and Tonio Fenech, the Maltese minister of finance, economy and investment, eliminates the double payment of taxes by nationals and enterprises of each country in the territory of the other. It applies to taxes on income imposed by each country or its political subdivisions or local authorities, irrespective of the manner in which they are levied.
The Convention is Bahrain's 18th such treaty that complies with the standard on exchange of tax information set by the Organisation for Economic Cooperation and Development (OECD) and endorsed by the G20 London Summit in April 2009.
It regards as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property and taxes on the total amounts of wages or salaries paid by enterprises, the two parties said.
It also applies to any identical or substantially similar taxes that are imposed after the date of signature of the convention in addition to, or in place of, existing taxes. Competent authorities in the two countries are to notify each other of any significant changes in their taxation laws.
Both countries said the signing was a step forward in developing bilateral co-operation in tax and econ-omic matters.
