The Isle of Man recently completed its 22nd double taxation agreement, this time with Bahrain, with which the island has also signed a memorandum of understanding on economic trade and technical cooperation.

The signing ceremony took place on February 3 2011 in Bahrain, before the onset of the unrest which swept the country later that month. The Manx Treasury Minister Anne Craine stated:

"I was delighted to be invited to Bahrain for the signing of these two important agreements. Bahrain is a key financial hub in the Middle East, and today's agreements will greatly facilitate the development of business and investment opportunities between Bahrain and the Isle of Man".

The agreement addresses taxation issues arising regarding the flow of business and movement of people between the Isle of Man and Bahrain and closely follows the model text published by the Organisation for Economic Cooperation and Development (OECD). The memorandum of understanding is a declaration of the two governments' intention to work together to facilitate development of bilateral economic activity.

The Isle of Man has now completed 22 double taxation agreements which meet the OECD international tax standard on transparency and effective exchange of information.

For further information on this topic please contact John T Aycock at M&P Legal by telephone (+44 1624 695800), fax (+44 1624 695801) or email ([email protected]).