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06
News
Expat workforce in
Bahrain reaches new
The Netherlands and Bermuda
peak
exchange tax information
The Dutch State Secretary for made by the signing of its recent Based on the information
Finance, Jan Kees de Jager, reached TIEA’s. The TIEA we sign today is exchange agreement, the
agreement with the Minister of the twelfth TIEA of Bermuda. This Netherlands and Bermuda will
Finance of Bermuda, Mrs. Paula means that, Bermuda has substan- exchange information on request
Cox, on Monday June 8, 2009 tially implemented the interna- relating to both criminal and civil
regarding the exchange of infor- tionally tax agreed standard.” tax matters.
mation relating to tax matters Bermuda has been active in the The exchange of information
(TIEA). Global Forum on Taxation and on criminal tax matters will
The Netherlands and Bermuda recently concluded similar TIEA’s also apply to tax years that are
The number of expats in Bahrain
affirmed their wish to deepen eco- with a considerable list of coun- still open when the agreement
increased by 18.8 per cent in the nomic and trade ties when the
tries. This demonstrates that enters into force. The operation
first quarter of 2009 when com- State Secretary and the Minister of Bermuda is not only committed to of this agreement facilitates and
pared to the same period last year. Finance signed four agreements the OECD standards on trans- broadens the exchange of infor-
The Labour Market Regulatory and a Protocol at the Netherlands parency and information exchange mation from, for example, bank
Authority (LMRA) revealed that the
embassy in London. in tax matters, it also shows the and trusts.
figure rose by 71,000 in comparison
In the light of increasing eco- efforts of Bermuda in implement- Taxpayers with undeclared
to the same quarter in 2008.
nomic globalisation of the last ing these standards. income can avoid a penalty if
LMRA Policy Directorate vice-
decades and the recent economic The information exchange they declare this income volun-
president Mohammed Dito
situation, the exchange of tax agreement between the tarily. The forms necessary to
announced that the total number of
information has become increas- Netherlands and Bermuda is based declare this income can be down-
people working in Bahrain at the
ingly important. It is of common on the OECD’s Model Agreement loaded from the Tax and Customs
end of March 2009 was 596,224,
which indicated an annual growth
international interest that juris- on the Exchange of Information Administration’s website.
of 16.5%. This consisted of 142,642
dictions assist each other combat- on Tax Matters. The Netherlands In connection to the TIEA
Bahrainis and 453,582 non-
ting tax avoidance, fraud, money already concluded TIEA’s with Isle the Netherlands and Bermuda
Bahrainis.
laundering and terrorist financ- of Man (October 2005), Jersey signed three additional agree-
The annual increase in Bahraini
ing. The Netherlands for that rea- (June 2007) and Guernsey (April ments: an agreement on access
employment was 9.8%. This repre-
son has been a leading advocate 2008). State Secretary Jan Kees de to mutual agreement procedures
sents the highest growth rate since
of the broadest possible exchange Jager: “The Netherlands has an relating to transfer pricing and
LMRA started to monitor Bahraini
of information for years. interest in the broadest possible agreements with respect to the
employment in 2008.
State Secretary Jan Kees de Jager exchange of information. These avoidance of double taxation
Figures from the LMRA indicate noted Bermuda’s contribution to agreements will assist our national with respect to enterprises
that the Authority issued 34,463 the mulilateral efforts of the tax authorities to track financial operating ships and aircraft and
new work visas during the first OECD member states to combat flows. The Netherlands intends to with respect to income of indi-
quarter of 2009. Of these, 50% con-
harmful tax competition and to conclude similar TIEA’s with other viduals.
cerned construction workers.
promote transparency and the jurisdictions soon. I sincerely wel- The agreements have yet to be
“This is a 7.9% increase over the
effective exchange of information come the steps Bermuda made by submitted for the required ratifi-
same period last year,” continued
relating to tax matters: “I welcome the recent signing of many cation processes in the
Dito.
the significant steps Bermuda TIEA’s.” Netherlands and Bermuda.
“This contradicts certain reports
which say many people are leaving
Bahrain because of the recession. In
fact, the number of foreigners tak-
ing up new jobs in Bahrain has been UAE property prices revert to 2006 levels
on a steady increase.”
The number of work visas
renewed during the first quarter was The website Propertyfinder.ae position as the most sought after around the same as they were in
26,499, an 11.3% per cent increase indicates property prices in the place to buy with 27% of traffic year 2006 - and in some areas, year
over 2008. UAE have reverted to 2006 levels. featured on the website. 2005.
Bahraini median wages across the The comparison was made as Marcello Sambartolo, head of “We are seeing areas in Abu
public and private sectors increased Propertyfinder.ae released details marketing at propertyfinder.ae, Dhabi gaining momentum in pop-
to BD413 from BD402 in the last of the Emirate’s top locations to said: “May’s survey is confirming ularity for a variety of reasons. On
quarter of last year. buy and rent during May. a pattern of price sensitivity. the buying side, the usual suspects
During this period the total num- The survey was based on the People are chasing the best rental are keeping their ground. Sought
ber of job vacancies registered at the response of more than 120,000 deals with the best options and the after areas are now beginning to
ministry was 6,413, representing an visitors to the website over the location is secondary, within sell at reasonable prices, still high
increase of 27%’ month. Khalifa City in Abu Dhabi reason. from a global perspective but defi-
Editor’s comment: Further evi-
emerged as the most popular place “This is also driving prices to be nitely not exaggerated.”
dence that the Middle East has
to rent with more than 20% of more competitive in areas where Al Barsha with 12% of inquiries
remained relatively unscathed in
total inquiries. previously thought to be immune. was another popular location,
terms of the global downturn.
The Springs in Dubai held its The pricing levels are now sitting with Dubai Marina a close second.
June 2009 Investment International www.investmentinternational.com
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