Barbados is banking on big business opportunities with oil-rich Arab state Bahrain following the signing of Double Taxation Agreement with that country today.
Minister of Foreign Affairs and Foreign Trade, Senator Maxine McClean, who led a Barbados delegation to the ceremony in capital city Manama, said the new accord was a “tangible signal to the business communities in both countries of the commitment to further enhancing their economic cooperation”.
A statement from the Bahrain News Agency said the new agreement was signed by McClean and that country’s Minister of Finance Shaikh Ahmed bin Mohammed Al Khalifa. Officials said the DTA “will eliminate the double payment of taxes by nationals and enterprises of each of the two countries in the territory of the other”.
“It covers all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property,” the agency noted.
McClean was reported as saying the new tax agreement was more than “an important expression of the strength of the diplomatic ties between Bahrain and Barbados”.
She noted that an Agreement for the Reciprocal Promotion and Protection of Investments was also concluded and is being prepared for signature, expressing hope of the soon signing and ratification of that instrument which will broaden opportunities for cross-border trade and investment.
McClean also said that as active participants in the OECD Global Forum on Transparency, the two countries had demonstrated their commitment to the international rules on tax information exchange, while safe-guarding the rights of tax payers.
“In fact, our mutual acceptance of these principles is reflected in this bilateral tax agreement,” she said.
“Both Barbados and Bahrain understand the complexity and importance of ensuring the continued stability of the global financial system and their role in its rehabilitation.” Bahrain’s minister called the signing “a step forward to further develop economic cooperation and joint investment between the two countries”.
He also spoke of “the crucial role of the DTAs in providing the appropriate economic environment to attract more foreign direct investment and enhance the competitiveness of the national economy”. (SC)