Qa'da, Oct 16, SPA -- Bahrain and Malaysia has sealed a landmark treaty on the avoidance of double taxation. The treaty is seen as major step forward to further cement the bilateral trade and investments as well as paving the way for Malaysian investors to reach $1 trillion GCC market by using Bahrain as a gateway, according to a report published yesterday by the Jeddah-based Arab News. The protocol was signed by Sheikh Ahmed bin Mohammed Al Khalifa, the Minister of Finance, and Syed Sultan Idris, Malaysian Ambassador to Bahrain. The protocol amends the existing double taxation agreement by inserting a new article which allows the competent authorities in the two countries to exchange relevant tax information. The protocol ensures that the agreement complies with the standard on exchange of tax Information set by the Organization for Economic Cooperation and Development (OECD) and endorsed by the G-20. Both sides expressed their satisfaction with the Protocol and commended its role in enhancing economic cooperation and joint investment between the two countries. The minister said that the protocol comes within Bahrain's strategy of signing Double Taxation Agreements with other countries of the world in order to provide the appropriate legal and economic environment to foster joint investment, explore new potential for national products and services, attract further foreign direct investment and enhance the competitiveness of the national economy on the regional and international levels. The Malaysian ambassador stressed that cooperation between Bahrain and Malaysia in financial and economic fields had been improving on steady basis in the last two years, particularly through the visit of Raja Dr. Nazrin Shah, the crown prince of the state of Perak, Malaysia, and financial ambassador of the Malaysia International Islamic Financial Center (MIFC) in October 2009. He referred to the protocol as another milestone demonstrating the mutual desire of the two countries to develop this co-operation further. He also saw great potential for Bahrain and Malaysia as financial hubs in their respective regions to complement each other and work closely for the health and benefit of the Islamic finance industry, which is gaining worldwide acceptance.
