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 Kingdom of Saudi Arabia, United Arab Emirates, and Kuwait.  The DTT between Qatar and Kingdom of Saudi Arabia 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.

Pillar Two

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 Organisation for Economic Co-operation and Development’s (OECD’s) Global Anti-Base Erosion (GloBE) rules. An Undertaxed Profits Rule (UTPR) has not been introduced at this stage. The law affirms alignment with OECD guidance.

On 12 February 2026, the Council of Ministers issued amendments to the Executive Regulations, providing detailed guidance on the application of the IIR and the DMTT. The framework aligns with the OECD GloBE Model Rules and confirms the application of the DMTT to Qatar Constituent Entities, as well as the IIR to Qatar-based parent entities.

Potential implementation of a value-added tax (VAT)

The Gulf Cooperation Council (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 General Tax Authority (GTA) has not made any communication in this regard, there is an increase in the expectation in the market that the introduction of VAT in Qatar may occur in the near future.