2019 Bahrain-Switzerland Income and Capital Tax Treaty Available

<p>Tax Analysts has obtained the English text of the Bahrain-Switzerland income and capital tax treaty signed November 23 in Manama.</p> <p>Under the treaty, dividends are taxable at a maximum rate of 5 percent if the beneficial owner is a company (other than a partnership) that directly holds at least 10 percent of the capital of the payer company. A 15 percent rate applies in other cases. Interest is taxable only in the recipient's state of residence and royalties are taxable only in the beneficial owner's state of residence. </p> <p>Bahrain generally uses the credit method to eliminate double taxation while Switzerland uses a combination of the credit and exemption methods. </p> <p>This is the first tax treaty concluded between the two countries. It will enter into force once ratification instruments are exchanged and its provisions will generally apply from January 1 of the year following entry into force. The 2004 Bahrain-Switzerland transport agreement is suspended once the treaty takes effect. </p>

<p><a href="/lr/resolve/-/2b5b8" title=" ">German text</a>. <a href="/lr/resolve/-/2b5bq" title=" ">Related Swiss release</a>. <a href="/lr/resolve/-/2b5bh" title=" ">German translation</a> of 2004 Bahrain-Switzerland transport agreement.</p>

<p>Tax Analysts has obtained the English text of the Bahrain-Switzerland income and capital tax treaty signed November 23 in Manama.</p>

Tax Analysts has obtained the English text of the Bahrain-Switzerland income and capital tax treaty signed November 23 in Manama. Under the treaty, dividends are taxable at a maximum rate of 5 percent if the beneficial owner is a company (other than a partnership) that directly holds at least 10 percent of the capital of the payer company. A 15 percent rate applies in other cases. Interest is taxable only in the recipient's state of residence and royalties are taxable only in the beneficial owner's state of residence.  Bahrain generally uses the credit method to eliminate double taxation while Switzerland uses a combination of the credit and exemption methods.  This is the first tax treaty concluded between the two countries. It will enter into force once ratification instruments are exchanged and its provisions will generally apply from January 1 of the year following entry into force. The 2004 Bahrain-Switzerland transport agreement is suspended once the treaty takes effect. 

<h4>Rate Table Instructions</h4> <ul> <li>You must enter a rate for each rate type</li> <li>Enter only one rate value per row</li> <li>You may leave the country columns blank if the rate is the same for both countries</li> <li>Country names (if entered) must exactly match the jurisdictions</li> <li>Leave the Partner Country column blank if you want the rate to apply to all partners of the Main Country</li> <li>Enter "n/a" in each rate row to hide the partner in the Main Country table</li> <li>Note that the same rates may apply for Main Country and Partner Country or the Main Country may apply different rates to the Partner Country</li> </ul> <table> <tbody> <tr><th> <div>Rate Type</div> (Dividends, Interest, Royalties)</th><th>Main Country</th><th>Partner Country</th><th>Rate</th><th>Footnote 1</th><th>Footnote 2</th><th>Footnote 3</th><th>Footnote 4</th></tr> <tr> <td>Dividends</td> <td> </td> <td> </td> <td>5/15 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Interest</td> <td> </td> <td> </td> <td>0 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr> <td>Royalties</td> <td> </td> <td> </td> <td>0 </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> </tbody> </table>

Bahrain - Switzerland: 2019 Income and Capital Tax Convention and Final Protocol

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2019 Bahrain-Switzerland Income and Capital Tax Treaty Available