The income tax treaty between Bahrain and the UAE will take full effect from 1 January 2026. 

Bahrain’s National Bureau for Revenue announced that the income tax treaty with the UAE has entered into force starting 1 May 2025.

The treaty was signed on 11 February 2024 is a first of its kind between the two nations.

Earlier, Bahrain passed the law to ratify the income tax treaty with the UAE on 9 March 2025.

The treaty applies from 1 January 2026.