Double Taxation Relief (Taxes on Income and Capital Gains) (Kingdom of Bahrain) Order, 2010

JurisdictionIreland
CitationIR SI 24/2010

S.I. No. 24 of 2010

DOUBLE TAXATION RELIEF (TAXES ON INCOME AND CAPITAL GAINS) (KINGDOM OF BAHRAIN) ORDER 2010

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 5th February, 2010.

WHEREAS it is enacted by section 826(1) (as substituted by section 35 of the Finance Act 2007 (No. 11 of 2007)) of the Taxes Consolidation Act 1997 (No. 39 of 1997) that where the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax, corporation tax in respect of income and chargeable gains, capital gains tax or any taxes of a similar character imposed by the laws of the State or by the laws of that territory and, in the case of taxes of any kind or description imposed by the laws of the State or the laws of that territory, in relation to exchanging information for the purposes of the prevention and detection of tax evasion or granting relief from taxation under the laws of that territory to persons who are resident in the State for the purposes of tax, and that it is expedient that those arrangements should have the force of law, and that the order so made is referred to in Part 1 of Schedule 24A of the Taxes Consolidation Act 1997 , then, subject to section 826 of that Act, the arrangements shall, notwithstanding any enactment, have the force of law as if such order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 1 of Schedule 24A:

AND WHEREAS it is further enacted by section 826(6) of the Taxes Consolidation Act 1997 that where such an order is proposed to be made, a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann:

AND WHEREAS a draft of the following Order has been laid before Dáil Éireann and a resolution approving of the draft has been passed by Dáil Éireann:

NOW, the Government, in exercise of the powers conferred on them by section 826(1) (as substituted by section 35 of the Finance Act 2007 (No. 11 of 2007)) of the Taxes Consolidation Act 1997 (No. 39 of 1997) hereby order as follows:

1. This Order may be cited as the Double Taxation Relief (Taxes on Income and Capital Gains) (Kingdom of Bahrain) Order 2010.

2. It is declared—

(a) that the arrangements specified in the Convention, the text of which is set out in the Schedule to this Order, have been made with the Government of the Kingdom of Bahrain in relation to affording relief from double taxation in respect of income tax, corporation tax in respect of income and chargeable gains, capital gains tax and any taxes of a similar character, imposed by the laws of the State or by the laws of the Kingdom of Bahrain, and, in the case of taxes of any kind or description imposed by the laws of the State or the laws of the Kingdom of Bahrain, in relation to exchanging information for the purposes of the prevention and detection of tax evasion and granting relief from taxation under the laws of the Kingdom of Bahrain to persons who are resident in the State for the purposes of tax, and

(b) that it is expedient that those arrangements should have the force of law.

SCHEDULE CONVENTION BETWEEN

IRELAND AND THE KINGDOM OF BAHRAIN

FOR THE AVOIDANCE OF DOUBLE TAXATION

AND THE PREVENTION OF FISCAL EVASION

WITH RESPECT TO TAXES

ON INCOME AND CAPITAL GAINS

The Government of Ireland and the Government of the Kingdom of Bahrain, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, have agreed as follows:

ARTICLE 1

PERSONS COVERED

This Convention shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2

TAXES COVERED

1. This Convention shall apply to taxes on income and capital gains imposed by each Contracting State, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income and capital gains all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property.

3. The existing taxes to which the Convention shall apply are in particular:

(a) in the case of Ireland:

(i) the income tax;

(ii) the income levy;

(iii) the corporation tax; and

(iv) the capital gains tax;

(hereinafter referred to as “Irish tax”);

(b) in the case of Bahrain to income tax payable under Amiri Decree No. 22/1979 (“The Oil Tax”) (hereinafter referred to as “Bahrain Tax”).

4. The Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.

ARTICLE 3

GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context otherwise requires:

(a) the term “Ireland” includes any area outside the territorial waters of Ireland which has been or may hereafter be designated, under the laws of Ireland concerning the Exclusive Economic Zone and the Continental Shelf, as an area within which Ireland may exercise such sovereign rights and jurisdiction as are in conformity with international law;

(b) the term “Bahrain” means the territory of the Kingdom of Bahrain as well as the maritime areas, seabed and subsoil over which Bahrain exercises, in accordance with international law, sovereign rights and jurisdiction;

(c) the terms “a Contracting State” and “the other Contracting State” mean Ireland or the Kingdom of Bahrain, as the context requires; and the term “Contracting States” means Ireland and the Kingdom of Bahrain;

(d) the term “person” includes an individual, a company and any other body of persons;

(e) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes or any other entity constituted or recognised under the laws of one or other of the Contracting States as a body corporate;

(f) the term “enterprise” applies to the carrying on of any business;

(g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State and, in the case of international traffic, shall include respectively an enterprise managed and controlled in a Contracting State and an enterprise managed and controlled in the other Contracting State;

(h) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(i) the term “national”, in relation to a Contracting State, means:

(i) in the case of Bahrain, any individual possessing the nationality of Bahrain and any legal person or association deriving its status as such from the laws in force in Bahrain; and

(ii) in the case of Ireland, any individual possessing the citizenship of Ireland and any legal person or association deriving its status as such from the laws in force in Ireland;

(j) the term “competent authority” means:

(i) in the case of Bahrain, the Minister of Finance or his authorised representative; and

(ii) in the case of Ireland, the Revenue Commissioners or their authorised representative;

(k) the term “business” includes the performance of professional services and of other activities of an independent character.

2. As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 4

RESIDENT

1. For the purposes of this Convention, the term “resident of a Contracting State” means:

(a) in the case of Bahrain,

(i) an individual who is a national of Bahrain and who is present in Bahrain for a period or periods totalling in the aggregate at least 183 days in the fiscal year concerned, and

(ii) any other person which, under the laws of Bahrain, is liable to tax therein by reason of domicile, residence, place of incorporation, place of management or any other criterion of a similar nature;

(b) in the case of Ireland any person who, under the laws of Ireland, is liable to tax therein by reason of his domicile, residence, place of incorporation, place of management or any other criterion of a similar nature,

and also includes that State, and any political subdivision or local authority thereof.

This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if he has...

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