According to an update from the Bahrain Ministry of Finance, the income tax treaty with Bangladesh entered into force on 30 April 2018. The treaty, signed 22 December 2015, is the first of its kind between the two countries.
The treaty covers Bahrain income tax and Bangladesh income tax.
Article 7 (Business Profits) includes the provision that nothing in the treaty will affect the rights of a Contracting State to tax the income derived by an enterprise of the other State from engaging in the exploration or the production of crude oil or other natural hydrocarbons in the first-mentioned State or in refining crude oil in that State.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
The treaty generally applies from 1 January 2019 in Bahrain and 1 July 2019 in Bangladesh.
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