Taxation: Switzerland signs an agreement with Bahrain
Income and wealth should no longer be taxed by both Switzerland and Bahrain. The two countries signed Monday in Manama a convention to avoid double taxation. In order to enter into force, the agreement must in particular still be approved by the Federal Chambers.
Dividends may be taxed in the State of source up to a maximum of 15%. Dividends from key shareholdings can be taxed at up to 5%, said the State Secretariat for International Financial Matters Monday. Interest and license fees will be taxable only in the recipient's state of residence.
The convention contains an administrative assistance clause that meets the international standard. It also includes a clause against abuse, in line with the recommendations of the G20 and the OECD. (AWP)