Bahrain approves ratification of income tax treaty with Jersey, establishing rules on corporate and income taxation and preventing double taxation once in force.
The Bahrain Council of Representatives has approved the law for the ratification of the income tax treaty with Jersey during its 25th Session on 7 April 2026.
Signed on 16 September 2025, the treaty is the first of its kind between the two jurisdictions.
The treaty covers the taxation of corporate income in Bahrain and income in Jersey, establishing how each jurisdiction applies its tax rules.
Under the agreement, Jersey individuals and companies in Bahrain will avoid punitive double taxation, where income is taxed both in the country where it is earned and in their home country.
It will enter into force once the ratification instruments are exchanged and will apply from 1 January of the year following its entry into force.
Earlier, the Jersey States Assembly approved the income tax treaty with Bahrain on 12 March 2026.
