Bahrain: Income tax treaty with Jersey enters into force
Generally applies from January 1, 2027, for withholding and other taxes
The Bahrain-Jersey income tax treaty, which was signed on September 15, 2025, entered into force on June 3, 2026.
The treaty sets out taxation rules for business profits, dividends, interest, royalties, capital gains, employment income, pensions, and other income. It also includes provisions on permanent establishments (PEs), exchange of information, mutual agreement procedures, non-discrimination, and anti-abuse rules based on the principal purpose test (PPT).
The treaty generally applies from January 1, 2027, for withholding and other taxes.
For more information, contact a KPMG tax professional in Bahrain:
Mubeen Khadir | mubeenkhadir@kpmg.com
Shashank Chandak | shashankchandak@kpmg.com
Zainab Murad | zainabmurad@kpmg.com