Bahrain approves draft law to ratify income tax treaty with Saudi Arabia signed on 3 December 2025 to prevent double taxation and promote investment, entering into force after ratification instruments are exchanged.

The Legislative and Legal Affairs Committee of Bahrain’s Council of Representatives approved the draft law for the ratification of the income tax treaty with Saudi Arabia on 13 April 2026.

Bahrain and Saudi Arabia signed a tax treaty on 3 December 2025. The agreement aims to address double taxation and promote investment.

This treaty is the first between the two countries and will enter into force after the ratification instruments are exchanged.