Which foreign sources of income will be taxed in Qatar
Income received from foreign sources was not previously included in income tax in Qatar. February innovations change everything. But there are exceptions. Income related to the permanent representation of the Qatar project located outside the country will not be accounted for in the tax base.
The amendment describes specific sources of taxable income:
- income received from real estate located outside Qatar, including income from its sale;
- income from distribution, marketing, telecommunications and broadcasting; brokerage fees; commissions on guarantees and other forms of financial support;
- dividends, interest, royalties and technical fees received by local companies from sources outside Qatar.
It is expected that the expansion of the scope of income tax will lead to an increase in the tax liabilities of Qatari organizations, which may not currently be subject to the global minimum tax.
In addition, the amendments introduce a mechanism of fiscal benefits, according to which taxpayers can deduct the amount of taxes paid from foreign income if two conditions are met:
the foreign tax was introduced by a foreign state;
the foreign tax was actually paid (excluding any foreign tax that was reimbursed by a foreign State).
Advantages of doing business and daily life in Qatar:
No. 1 in the Arab world in business support and 2nd place in terms of economic freedom in the Middle East.
The highest level of GDP among the countries of the Middle East (167.62 billion US dollars)
One of the lowest corporate tax rates in the world (10%). Flexible taxation (2nd place in the world according to the Doing Business rating).
Foreign investors are offered full repatriation of capital and profits abroad in foreign currency;
Convenient conditions for creating a business from scratch or expanding the boundaries of influence
The jurisdiction is not recognized as an offshore by international organizations, the government of the Russian Federation and Belarus.
If you are planning to open a company in Qatar, you need assistance in legal and tax support, leave a request in the form below and we will contact you as soon as possible.
Lana Avetisyan
Managing Director for Business Development
+7 (977) 298-27-05
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