The Hong Kong Inland Revenue Department has announced that the income tax treaty with Bahrain entered into force on 4 March 2025. The treaty, signed 3 March 2024, is the first of its kind between the two jurisdictions. Taxes Covered The treaty covers Bahrain income tax payable under Amiri Decree No. 22/1979. It covers Hong Kong profits tax, salaries tax, and property tax. Service PE The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services through employees or other engaged personnel if the activities continue for the same or connected project within...