Qatar

Double tax treaties (DTTs) with the Kingdom of Saudi Arabia (KSA) and United Arab Emirates (UAE)

The State of Qatar has recently signed DTTs with the KSA, UAE and Kuwait.  The DTT between Qatar and KSA has been ratified, however, there has been no official statement on the effectiveness of the DTT. The other two DTTs are yet to be ratified.

Amendments to the Tax Law

In March 2025, Qatar enacted Law No. 22 of 2024, introducing a Domestic Minimum Top-Up Tax (DMTT) and Income Inclusion Rule (IIR), effective for fiscal years beginning on or after 1 January 2025. The DMTT is intended to qualify as a “Qualified Domestic Minimum Top-Up Tax” (QDMTT) under the OECD’s GloBE rules. A UTPR has not been introduced at this stage. The law affirms alignment with OECD guidance.

Social and Sports Contribution Fund for listed entities

Companies listed on the Qatar Stock Exchange are required to pay a 2.5% levy imposed under Law No. 13 of 2008 to support social and sport activities. This levy was previously administered by the Social and Sports Contribution Fund, established by way of Amiri Decree No. 44 of the year 2010.

On 2 November 2022, a circular was issued stating that starting from the financial year ended 31 December 2022, the GTA will be responsible for the collection of this 2.5% levy. The procedure and deadlines contained in the Law No. 24 of 2018 and its executive regulations are expected to be applicable.

Economic Substance Requirements

On 17 October 2021, the Ministry of Finance in the State of Qatar issued Decision No. 20 of 2021 (concerning economic substance regulations in Qatar, ’the Regulations/ESR‘), requiring ’qualifying entities‘ that carry on specified activities to demonstrate economic substance in Qatar from 4 November 2021 if they want to benefit from a preferential tax regime.

Note the following:

• Depending on the date of incorporation, qualifying entities would be required to comply on an immediate basis.
• Sanctions for non-compliance and filing requirements will be determined in due course.
• All entities in Qatar should perform an analysis to assess whether they fall into ESR scope and take immediate steps for compliance.

All Qatari entities will need to assess whether and which of their activities fall within the scope of the ESR and how to ensure they meet the ESR requirements in respect of each relevant activity. This is both a qualitative and quantitative assessment that would involve consideration of operational, financial, tax / transfer pricing, legal, and governance matters.

Potential implementation of a value-added tax (VAT)

The GCC countries have signed a VAT common framework, which forms the legal basis for the introduction of a VAT system in each of the GCC member states (Kingdom of Bahrain, State of Kuwait, Sultanate of Oman, State of Qatar, Kingdom of Saudi Arabia, and the United Arab Emirates).

Saudi Arabia and the United Arab Emirates have implemented VAT as of January 2018. Bahrain has implemented VAT as of January 2019. Oman implemented VAT in April 2021. The other GCC member states are also expected to issue their own VAT legislation. The Cabinet of Qatar had previously approved a draft law on VAT and its Executive Regulations as put forth by the Qatar Ministry of Finance. The laws and respective executive regulations have not been published yet. While the GTA has not made any communication in this regard, given the recent resolution of the blockade on Qatar, there is an increase in the expectation in the market that the introduction of VAT in Qatar may occur in the near future.