The agreement was signed during a ceremony held at the premises of the Ministry of Finance by Shaikh Ahmed bin Mohammed Al Khalifa, the Minister of Finance, and the Hon Anne Craine MHK, the Isle of Man’s Treasury Minister.
The DTA will comprehensively address taxation issues arising in relation to the flow of business and any movement of people between Bahrain and the Isle of Man. It closely follows the model double taxation treaty published by the Organisation for Economic Co-operation and Development (OECD).
The MoU is a detailed declaration that the two governments intend to work closely together to facilitate the development of bilateral economic activity on the basis of equity and mutual benefit. A Joint Economic Committee consisting of representatives of both sides will be set up to monitor the implementation of the MoU and develop and evaluate proposals on the implementation of its provisions.
The Minister of Finance said that the signing was a clear demonstration of the willingness of both Bahrain and the Isle of Man to develop further their investment and economic ties and stimulate initiatives in these areas. “Given that Bahrain and the Isle of Man are members of the Global Forum on Transparency and Exchange of Information for Tax Purposes, the DTA will certainly encourage transparency and exchange of information for tax purposes,” he said.
“I was delighted to be invited to Bahrain for the signing of these two important agreements. Bahrain is a key financial hub in the Middle East, and today’s agreements will greatly facilitate the development of business and investment opportunities between Bahrain and the Isle of Man,” said Minister Craine.
The signing ceremony was attended by Aref S. Khamis, Undersecretary, Ministry of Finance, and a number of MOF and Isle of Man Treasury officials.
The DTA signed with the Isle of Man is Bahrain’s 23rd DTA which contains an article on Exchange of Information which follows the international standard on transparency and exchange of information for tax purposes adopted by the UN, OECD and G20. Currently Bahrain has a total of 29 signed DTAs of which 21 are in force, 13 of which meet the international standards.