eLearningClasses.com
Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

CYPRUS DOUBLE TAX TREATY AGREEMENT WITH BAHRAIN ENFORCED

On the 9th of March 2015, in Manama- Bahrain, an agreement for the avoidance of double taxation was signed between the Republic of Cyprus and the Kingdom of Bahrain, subsequently the tax treaty was entered into force on 26April 2016. The main objective of the agreement is to develop a stronger economic and trade relationship between the two countries.

The double tax treaty with Bahrain expands Cyprus’ network of related arrangements, based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital, andaims to boost trade and foreign investments between Cyprus and the Gulf state.

The agreement will be enforced upon mutual confirmations from both countries, concluding the ratification procedures, with an effective date being 1stof January 2017.

The main provisions of the tax treaty include:

Taxes covered (pertaining to Article2)

  • The agreement applies to taxes on income imposed by either country on income tax, corporate income tax, capital gains tax and Special Defence Tax (SDT).

Permanent establishment ((article 5) 

  • This follows the OECD Model Tax Convention and refers to abuilding site, a construction or installation project or any supervisory activities in connection with them constitute a permanent establishment only if they last for more than twelve months.

Business profits

  • The agreement relating to Business profits correlates verbatim with the OECD Model Convention bar profits of a permanent establishment in the other contracting state, therefore only taxable in the country in which the company is resident.

Dividends, interest and royalties

  • Dividends, interest and royalties is paid by a company resident in the contracting state and taxable only in the resident state. Zero withholding taxes is to be applied on payments of dividends, interest and royalties, and although currently Bahrain doesn’t levy withholding taxes on dividends, interest or royalties at present, should this be revised in the future, no withholding taxes would be applied to payments made to Cypriot tax residents.

Capital gains

  • Gains derived by immovable property may be taxed in the contracting state in which the property is situated. Gains derived from the alienation of all other property (including aircraft operated in international traffic or ships) as well as gains from disposal of shares are only taxable in the contracting state in which the alienator is resident.