Hong Kong’s Comprehensive Avoidance of Double Taxation Agreement (CDTA) with Bahrain, signed in March last year, came into force on 4 March 2025, after completion of relevant ratification procedures.
The CDTA will be applicable to Hong Kong tax for any year of assessment beginning on or after 1 April 2026.
This announcement was made by the Hong Kong Inland Revenue Department on 28 April 2025.
“Under the CDTA, companies and residents of Hong Kong and Bahrain will not have to pay tax twice on a single source of income. The CDTA will allow them to have certainty on tax liabilities and save tax when they engage in cross-border business activities, thus helping to promote bilateral trade and investment. To date, Hong Kong has signed CDTAs with 51 tax jurisdictions,” a Government spokesman said.
