On 28 January 2021, Bahrain ratified and published in its Official Gazette the tax treaty signed with Switzerland. The treaty was signed back in November 2019 and provides measures that cap maximum withholding tax rates and provides for the exchange of information.
The double taxation agreement is not yet in force as no ratification instruments have been exchanged. After an exchange of ratification instruments, the treaty will apply as from the 1st January of the year following its entry into force.
Ratification of the Multilateral Competent Authority Agreement on Exchange of Country-by-Country Reports (MCAA CbCr)
On the 28 January 2021, Bahrain ratified and published in its Official Gazette the Multilateral Competent Authority Agreement on exchange of Country-by-Country Reports.
The agreement was signed back in December 2019 and provides for a standardized and efficient mechanism to facilitate the bilateral automatic exchange of country-by-country reports.
This agreement is aimed at increasing transparency and collaboration between the signatory states. As of January 2020, there were 89 signatory countries.
The ratified agreement will come into effect from the day following the date of its publication in the Official Gazette, that is since Friday 29th January.
It should be noted that Bahrain has not yet implemented any Country-by-Country reporting standards. However, we expect Bahrain to shortly introduce such measures.