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June 26, 2026

This Convention between Bahrain and the United Kingdom avoids double taxation and prevents fiscal evasion for taxes on income and capital gains. It applies to Bahrain's income tax payable under Legislative Decree No. (22) of 1979 (The Oil Tax) and the UK's income tax, corporation tax, and capital gains tax. Key articles include Article 5 on Permanent Establishment and Article 7 on Business Gains, which stipulates profits are taxable only in an enterprise's state of residence unless attributable to a permanent establishment. Article 10 addresses Dividends, Article 12 Royalties, and Article 21 outlines methods for eliminating double taxation.

Agreement between the Government of the KINGDOM OF BAHRAIN and the Government of the UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains

The Government of the Kingdom of Bahrain and The Government of the United Kingdom of Great Britain and Northern Ireland; Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital gains; Have agreed upon as follows:

Contents

Article 1 - Persons Covered by the Convention

Article 2 - Taxes Covered by the Convention

Article 3 - General Definitions

Article 4 - Residence

Article 5 - Permanent Establishment

Article 6 - Income from Immovable Property

Article 7 - Business Gains

Article 8 - Shipping and Air Transport

Article 9 - Associated Enterprises

Article 10 - Dividends

Article 11 - Income from Debt-Claims

Article 12 - Royalties

Article 13 - Capital Gains

Article 14 - Income from Employment

Article 15 - Directors' Fees

Article 16 - Artists and Sports Persons

Article 17 - Pensions

Article 18 - Government Services

Article 19 - Students

Article 20 - Other Income

Article 21 - Elimination of Double Taxation

Article 22 - Non-Discrimination

Article 23 - Mutual Agreement Procedure

Article 24 - Exchange of Information

Article 25 - Members of Diplomatic or Permanent Missions and Consular Missions

Article 26 - Entry into Force of the Convention

Article 27 - Termination of the Convention

Article 1
Persons Covered by the Convention

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

Article 1Persons Covered by the Convention

Article 2Taxes Covered by the Convention

Article 1
Persons Covered by the Convention

Article 2
Taxes Covered by the Convention