Manama: Bahrain’s parliament has approved a law to tax remittances from expatriates. The matter was referred to the Supreme Council, the Shura Council, for a final decision.
Parliament has approved a law to impose a levy of two percent on each remittance by a non-resident person. The proposal was submitted by Parliament Speaker Ahmed Al Musallam to the Shura Council, the upper house. Although the government opposed the proposal of the MPs, the parliament approved it. The government has argued that taxing remittances is unfair and unconstitutional.
The government also took the position that the levy is a violation of freedom of exchange of money. Bahrain has signed several international agreements and treaties with countries around the world regarding freedom of money transfer. The government has clarified in its written reply to the MPs that it cannot be violated. The government has assessed that the removal of taxes will have a negative impact on the economy and will have a negative impact on the financial and commercial sectors.
The government took the position that the tax would lead to the emergence of illegal transfer channels and the taxes would be evaded by workers and forced to be paid by sponsors, adding to the financial burden on businessmen. The government also explained that expatriates in leadership positions in companies and banks in Bahrain will move to other countries. The Bahrain Chamber and the Bahrain Business Men’s Association have expressed opposition to the proposal.
Summary: Bahrain’s parliament has approved a law to tax remittances from expatriates
#Taxation #remittances #expatriates #Approval #law #Bahraini #Parliament
2024-01-04 18:48:35
