Bahrain approved the law for the ratification of the income tax treaty with Guernsey on 23 April 2025. The treaty was signed 29 September 2024, is the first of its kind between the two jurisdictions.
A tax treaty, also known as a double tax agreement (DTA) or double tax avoidance agreement (DTAA), is a pact between two countries designed to prevent or reduce double taxation. These agreements may address various types of taxes, such as income taxes, inheritance taxes, value-added taxes, or others. In addition to bilateral agreements, there are also multilateral treaties in effect.
It will take effect 30 days after the exchange of ratification instruments and will be applicable from 1 January of the year following its entry into force.
