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June 26, 2026

This Agreement between the United Arab Emirates and the Kingdom of Bahrain aims to eliminate double taxation on income and prevent tax evasion (Preamble). It applies to taxes on income, specifically the Corporate Income Tax in both Contracting States (Article 2), covering residents of one or both States (Article 1). Key provisions include a mutual exemption from tax on dividends (Article 10), income from debt-claims (Article 11), and royalties (Article 12) in the source State. The primary method for eliminating double taxation is the Credit Method (Article 22). Government investments and related income are exempt from tax in the other Contracting State (Article 26). The Treaty also contains a Limitation on Benefits clause (Article 29).

Agreement between the Government of the UNITED ARAB EMIRATES and the Government of the KINGDOM OF BAHRAIN for the Elimination of Double Taxation with respect to Taxes on Income and the Prevention of Tax Evasion and Avoidance

The Government of the United Arab Emirates and the Government of the Kingdom of Bahrain, desiring to develop their relationship and to enhance cooperation between them in tax matters, and to conclude an agreement for the elimination of double taxation with respect to taxes on income, and for the prevention of opportunities for tax reduction or non-taxation through tax evasion or tax avoidance (including through arrangements for the use of the Agreement aimed at obtaining benefits provided by this Agreement for the indirect benefit of residents of a third State), 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, Air, and Land 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 - Entertainers and Sportspersons

Article 17 - Pensions

Article 18 - Government Service

Article 19 - Students

Article 20 - Teachers and Researchers

Article 21 - Other Income

Article 22 - Elimination of Double Taxation

Article 23 - Non-Discrimination

Article 24 - Mutual Agreement Procedure

Article 25 - Exchange of Information

Article 26 - Special Provisions

Article 27 - Members of Diplomatic Missions and Consular Posts

Article 28 - Income from Natural Resources

Article 29 - Entitlement to Benefits

Article 30 - Entry into Force

Article 31 - 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

This is an unofficial / best effort translation

Article 1Persons Covered

Article 2Taxes Covered

Article 1
Persons Covered

Article 2
Taxes Covered