Bahrain - A mutual taxation agreement between Bahrain and the UAE was unanimously approved by the Shura Council yesterday.

Financial and economic affairs committee rapporteur Sadiq Al Rahma stressed that double taxation avoidance agreements effectively helped create a stable investment environment by avoiding the imposition of double taxes on the same income in two different countries and by removing tax barriers.

“These agreements provide the necessary protection for individuals and companies from double taxation, and also encourage companies and individuals to invest mutually in the two countries, thus enhancing the flow of capital and investments to the local economy,” he said.

“The agreements help enhance transparency and exchange of information between tax authorities in different countries, which helps combat tax evasion and achieve tax justice.”

The UAE’s investments in Bahrain amount to $2 billion, according to Finance and National Economy Minister Shaikh Salman bin Khalifa Al Khalifa.

Bahrain’s exports to the UAE exceeded $1bn annually while imports totalled more than $1bn.There are 110 branches of UAE companies in Bahrain, 1,200 Bahraini companies with UAE investors, 6,900 Emirati nationals own stocks in Bahrain Bourse, 3,000 Emiratis own property in Bahrain and 1,978 Emiratis are licensed to conduct business in Bahrain.

Meanwhile, the upper chamber of the National Assembly also approved a similar agreement with Hong Kong.“We have so far signed 45 similar agreements with several countries,” said Shaikh Salman.

The committee’s rapporteur, Hisham Al Qassab, stressed that the draft law aims to develop economic, commercial and investment opportunities and enhance co-operation in tax matters between Bahrain and Hong Kong.

The council decided to approve the two agreements as a whole, with the final vote to be taken on it in the next session.

Meanwhile, Shura Council secretary-general Kareema Al Abbasi read out a statement on the Bahrain Diplomatic Day, which falls tomorrow.

She also notified members about written responses from ministers.The first was from Oil and Environment Minister Dr Mohammed Bin Daina to a question by member Fouad Al Haji on the most prominent types of marine violations that were detected.

The second was from Health Minister Dr Jalila Al Sayyed to a question by Dr Bassam Al Binmohammed regarding making it mandatory for food stores, food manufacturing companies and retailers to place labels on food products.

The third was by Cabinet Affairs Minister Hamad Al Malki, who is politically responsible for Tamkeen (Labour Fund), to a question by services committee vice-chairman Talal Al Mannai on initiatives and efforts undertaken by Tamkeen for renewable energy projects.

Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).