10 October 2010 - A Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income was signed in Washington DC between the Government of the Kingdom of Bahrain and the Government of Mexico.
The Convention was signed by H.E. Shaikh Ahmed bin Mohammed Al Khalifa, the Minister of Finance, and H.E. Ernesto Cordero Arroyo, the Mexican Minister of Finance and Public Credit.
The Convention eliminates double taxation between the two countries and allows for exchange of tax information in accordance with the standards created by the Organisation for Economic Co-operation and Development (OECD). It applies to taxes on income imposed on behalf of each of the two countries, irrespective of the manner in which they are levied.
The Minister and his Mexican counterpart praised the Convention and its role in promoting good governance in tax matters and fostering investment. They looked forward to increased co-operation between their competent tax authorities.