Qatar, Bermuda sign double taxation agreement

By added on 14/05/2012

This is the second such agreement signed by Bermuda. The first double taxation agreement was signed with Bahrain in May 2010. The deal was signed with Qatar was signed on 10 May 2012 by Premier and Minister of Finance of Bermuda, the Hon. Paula A. Cox JP, MP, reports CPI Financial.

On signing the agreement Premier Cox said, ”Today the Government of Bermuda lays down our trump card to further Bermuda as a western hub for the Islamic financial services industry.

“The Double Taxation Agreement (DTA) signed today enters Bermuda among Qatar’s impressive DTA network of 50 DTAs and positions us to market Bermuda as an interconnecting domicile for Bermuda and investment from and to those 50 countries with which Qatar has DTAs.

“As well, investors in countries that to date do not have a DTA with Qatar can establish domicile in Bermuda and benefit from the Qatar Bermuda DTA and the DTA network.

“The DTA also provides incentive to Qatar entities including Qatar Airways, also Bermuda’s reinsurance industry and shipping companies around the world that have Qatari or GCC ownership interests.”

The previous day, Premier Cox had also signed a memorandum of understanding (MOU) which covers Economic, Commercial and Technical Cooperation, including industry, mines energy, agriculture, communications, transportation, construction, labour and tourism, which sets out that Qatar will assist Bermuda to make further inroads in the GCC region and Bermuda will position ourselves as a hub to assist Qatar to further diversify structures to access western markets.

The Premier ended her speech on a lighter note, saying, “Today is an important handshake between Bermuda and the State of Qatar for Qatar is the hand in the GCC region and Bermuda is the hook in the West.

“Qatar local folklore describes the shape of the country as resembling the palm of a right hand extended in prayer, while Bermuda is shaped like a fish hook. With Bermuda using our hook in the West to attract new business and with Qatar using its hand in the GCC to secure further opportunity, a powerful partnership has been formed for the benefit of the people of our respective countries.”