Website Last updated:

June 26, 2026

This Agreement between Bahrain and Oman addresses the elimination of double taxation and prevention of fiscal evasion regarding income taxes. It applies to Omani Income Tax and Bahraini Corporate Income Tax. Crucially, the treaty establishes a 0% withholding tax rate for both dividends and interest (income from debt-claims) in the source state, taxing them only in the recipient's country. Conversely, royalties and fees for technical services are subject to a maximum source withholding tax of 8%. The Agreement employs the credit method for the elimination of double taxation and includes anti-avoidance provisions regarding treaty shopping.

Agreement between the Government of the SULTANATE OF OMAN and the Government of the KINGDOM OF BAHRAIN regarding the Elimination of Double Taxation and the Prevention of Tax Evasion and Avoidance with respect to Taxes on Income

The Government of the Sultanate of Oman and the Government of the Kingdom of Bahrain, desiring to further develop their economic relationship and to enhance their cooperation in tax matters,

Intending to conclude an Agreement for the elimination of double taxation with respect to taxes on income without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this Agreement for the indirect benefit of residents of third States), have agreed as follows:

Contents

CHAPTER I - SCOPE OF THE AGREEMENT

Article 1 - Persons Covered

Article 2 - Taxes Covered

CHAPTER II - DEFINITIONS

Article 3 - General Definitions

Article 4 - Resident

Article 5 - Permanent Establishment

CHAPTER III - TAXATION OF INCOME

Article 6 - Income from Immovable Property

Article 7 - Business Profits

Article 8 - International Traffic

Article 9 - Associated Enterprises

Article 10 - Dividends

Article 11 - Income from Debt-Claims

Article 12 - Royalties

Article 13 - Fees for Technical Services

Article 14 - Capital Gains

Article 15 - Income from Employment

Article 16 - Directors' Fees

Article 17 - Artistes and Sportspersons

Article 18 - Pensions and Social Security Payments

Article 19 - Government Service

Article 20 - Professors and Researchers

Article 21 - Students and Trainees

Article 22 - Other Income

CHAPTER IV - ELIMINATION OF DOUBLE TAXATION

Article 23 - Methods for Elimination of Double Taxation

CHAPTER V - SPECIAL PROVISIONS

Article 24 - Government Investments

Article 25 - Non-Discrimination

Article 26 - Mutual Agreement Procedure

Article 27 - Exchange of Information

Article 28 - Members of Diplomatic Missions and Consular Posts

Article 29 - Entitlement to Benefits

CHAPTER VI - FINAL PROVISIONS

Article 30 - Entry into Force

Article 31 - Termination

CHAPTER I - SCOPE OF THE AGREEMENT

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

CHAPTER I - SCOPE OF THE AGREEMENT

Article 1Persons Covered

Article 2Taxes Covered

Article 1
Persons Covered

Article 2
Taxes Covered