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June 26, 2026

Agreement between the Government of the STATE OF BAHRAIN and the Government of MALAYSIA for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income

The Government of the State of Bahrain and the Government of Malaysia,

Desiring to conclude an Agreement 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 - Shipping and Air Transport

Article 9 - Associated Enterprises

Article 10 - Dividends

Article 11 - Income from Debt-Claims

Article 12 - Royalties

Article 13 - Fees for Technical Services

Article 14 - Gains from the Alienation of Property

Article 15 - Independent Personal Services

Article 16 - Dependent Personal Services

Article 17 - Directors' Fees

Article 18 - Artistes and Sportsmen

Article 19 - Pensions

Article 20 - Government Service

Article 21 - Students and Trainees

Article 22 - Lecturers and Researchers

Article 23 - Other Income

Article 24 - Miscellaneous Provisions

Article 25 - Elimination of Double Taxation

Article 26 - Non-Discrimination

Article 27 - Mutual Agreement Procedure

Article 28 - Diplomatic Agents and Consular Officers

Article 29 - Entry into Force

Article 30 - Termination

Article 1
Persons Covered

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

Article 2
Taxes Covered

  1. This Agreement shall apply to taxes on income imposed by a Contracting State, irrespective of the manner in which they are levied.

  2. The existing taxes which are the subject of this Agreement are:

    1. in Malaysia:

      1. the income tax; and

      2. the petroleum income tax;

      (hereinafter referred to as "Malaysian tax");

    2. in Bahrain:

      1. the corporate income tax; and

      2. any tax imposed on total income or on elements of income;

      (hereinafter referred to as "Bahraini tax").

  3. This Agreement shall also apply to any identical or substantially similar taxes on income which are imposed after the date of signature of the Agreement 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 3
General Definitions