On 24 February 2014, Hungary and Bahrain signed a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. A number of agreements pertaining to the economic and technical co-operation were also signed between the two countries. The convention applies to residents and enterprises of both countries and aims at eliminating the double taxation of income as well as creating an appropriate environment to attract capital investment in each state.
The double tax convention complies with the international standards on exchange of tax information set by the Organization for Economic Co-operation and Development (OECD) and endorsed by the G20. The agreement is expected to create a more favorable climate for foreign direct investment.
