The Bahrain Cabinet has approved the law for the ratification of the new income tax treaty on 22th January 2018, with Egypt for the avoidance of double taxation. The treaty was signed 26 April 2016, will enter into force after the ratification instruments are exchanged and, once in force and effective, will replace the 1997 tax treaty between the two countries.
According to the new treaty the withholding tax rates are: interest-10%; Royalties-10%; Dividend-10% (5% if the beneficial owner is a company directly holding at least 25% of the paying company’s share).
