Hong Kong's Comprehensive Avoidance of Double Taxation Agreement ("CDTA") with Bahrain came into force on March 4, 2025, benefiting both Hong Kong and Bahrain in cross-border business activities, and avoiding double taxation. The agreement will be applicable for the year of assessment starting April 1, 2026.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On March 4, 2025, the Comprehensive Double Taxation Avoidance Agreement ("CDTA") between Hong Kong and Bahrain entered into force. The agreement was signed in March 2024 and has since completed the necessary ratification procedures. The CDTA will be applicable to tax assessments in Hong Kong beginning on or after April 1, 2026, ensuring that companies and residents of both jurisdictions avoid double taxation on the same income source. This arrangement provides clarity on tax liabilities and offers cost savings for businesses engaged in cross-border activities, thus fostering mutual trade and investment. As of April 28, 2025, the Hong Kong government has signed CDTAs with 51 tax jurisdictions.
The full text of the CDTA can be accessed on the Hong Kong e-Legislation website.
The agreement was announced and made publicly available on Monday, April 28, 2025, at 15:11 HKT.
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