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Double Tax Treaties

Bahrain's extensive DTT network and how to leverage treaty benefits.

INTERNATIONALMarch 2026 · 6 min read

Why Treaties Matter

Although Bahrain has no income tax, its treaty network protects Bahrain-resident businesses from double taxation abroad. Treaties reduce withholding taxes on dividends, interest, and royalties received from treaty-partner countries.

Key Treaty Partners

Country Dividends Interest Royalties
🇬🇧 United Kingdom 0% 0% 0%
🇫🇷 France 0% 0% 0%
🇳🇱 Netherlands 0/10% 0% 0%
🇲🇾 Malaysia 0/5% 5% 8%
🇹🇭 Thailand 10% 10% 10%
🇨🇳 China 5/10% 10% 10%

Bahrain has 40+ active DTTs. Rates shown are treaty-reduced maximums.

How to Claim Treaty Benefits

1

Obtain Tax Residency Certificate

Apply to NBR for a Tax Residency Certificate (TRC) confirming Bahrain tax residence.

2

Submit Treaty Claim

File the appropriate forms with the source country's tax authority to claim reduced withholding rates.

3

Apply Reduced Rate

Source country applies treaty rate instead of domestic rate. Refund available if withheld at higher rate.

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