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June 26, 2026

This Convention between Bahrain and Barbados aims to prevent double taxation on income. It applies to Bahrain's income tax and Barbados's income, corporation, and petroleum winning operations taxes. Key provisions define permanent establishment, including a building site lasting over six months, and establish residency criteria. Profits from international transport are taxable only in the state of effective management. The treaty specifies that dividends, income from debt claims, and royalties are taxable in the recipient's state of residence, with no source-state taxation. Double taxation is eliminated through the credit method for both states, as outlined in Article 23.

Convention between the Government of the Kingdom of BAHRAIN and the Government of BARBADOS for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income

The Governments of the Kingdom of Bahrain and Barbados, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:

Contents

Article 1 - Persons Covered

Article 2 - Taxes Covered

Article 3 - General Definitions

Article 4 - Resident

Article 5 - Permanent Establishment

Article 6 - Income from Immovable Property

Article 7 - Business Profits

Article 8 - International Transport

Article 9 - Associated Enterprises

Article 10 - Dividends

Article 11 - Income from Debt Claims

Article 12 - Royalties

Article 13 - Capital Gains

Article 14 - Independent Personal Services

Article 15 - Dependent Personal Services

Article 16 - Director's Fees

Article 17 - Entertainers and Sportspersons

Article 18 - Pensions

Article 19 - Government Service

Article 20 - Students

Article 21 - Professors and Teachers

Article 22 - Other Income

Article 23 - Relief from Double Taxation

Article 24 - Non-discrimination

Article 25 - Mutual Agreement Procedure

Article 26 - Exchange of Information

Article 27 - Members of Diplomatic Missions and Consular Posts

Article 28 - Entry into Force

Article 29 - Termination

Article 1
Persons Covered

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2
Taxes Covered

The existing taxes to which this Convention shall apply are:
1. in Bahrain, to income tax payable under Amiri Decree No. 22/1979 (hereinafter referred to as "Bahrain Tax"); and
2. in Barbados:
  1. the income tax (including premium income tax);
  2. the corporation tax (including the tax on branch profits); and
  3. the petroleum winning operations tax;
  (hereinafter referred to as "Barbados tax").
The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.

Article 1Persons Covered

Article 2Taxes Covered

Article 3General Definitions

Article 1
Persons Covered

Article 2
Taxes Covered

Article 3
General Definitions