The Republic of Cyprus and the Kingdom of Bahrain signed on Monday March 9, 2015 a double taxation avoidance agreement on income tax and Capital.
According to a Finance Ministry announcement, the text agreed between the two states` negotiating teams will contribute to the further development of trade and economic relations between the Cyprus and Bahrain as well as with other countries.
By updating, maintaining and expanding the existing network of double taxation avoidance agreements, which are of a paramount economic and political significance, the ministry seeks to enhance and attract foreign investments and to promote Cyprus as an international business center.
The double taxation avoidance agreement updates an existing protocol and expands the network of similar deals, based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital, in order to help boost foreign direct investments to Cyprus. The agreement signed is based on the OECD Model Convention for the Avoidance of Double Taxation on Income and on Capital, the press release concludes.