Bahrain's parliament has approved a draft law to ratify the protocol to the tax treaty between Bahrain and China.
The protocol was signed September 16th 2013, and includes several amendments to the language of the original treaty in terms of taxes covered, general definitions, residence and elimination of double taxation. The main change though is to dividends withholding tax, which is raised from 5% to 10% for dividends paid by the resident of one state to a beneficial owner in the other state.
The protocol will enter into force 30 days after the exchange of ratification instruments, and its will apply from January 1st of the year following the year it enters into force. The original treaty was signed May 16th 2002.
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