Manama: The Finance Ministers of the European Union decided to remove the Kingdom of Bahrain from the EU's list of non-cooperative jurisdictions in taxation matters. The decision was taken earlier today during the meeting of the EU Economic and Financial Affairs Council(Ecofin) in Brussels.
Ms Rana E. Faqihi, Assistant Undersecretary for Public Revenue Development at the Ministry of Finance, referred to the move as a testimony to the regulatory system of the financial and banking sector in the Kingdom and its adherence to best international practices.
She also noted that the removal is a culmination of a series of measures taken by Bahrain with a vision of enhancing transparency with regard to taxation issues. This includes, inter alia, joining the Global Forum on Transparency and Exchange of Information for Tax Purposes, and the OECD’s Inclusive Framework on Base Erosion and Profit Shifting (BEPS).
Further, Bahrain also signed the Convention on Mutual Administrative Assistance in Tax Matters (MAC), and the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA). Both documents are currently being ratified in line with Bahrain’s constitution. They complement a robust tax treaty network, which includes more than 50 signed instruments on the exchange of tax information.
She stressed that Bahrain is proud to maintain a financial regulatory infrastructure which is globally recognised for its strength and efficiency, and will continue to work with the EU and other relevant regional and international bodies to combat all forms of tax evasion.