It is important to recognise that residence is not the basis used to determine whether an entity is taxable for CIT purposes in Qatar. Accordingly, a CIT exposure in Qatar may arise even if a company is not resident in Qatar. However, residence is relevant when considering whether WHT will apply on payments received rather than CIT.
A company is resident in Qatar if it is incorporated in accordance with Qatari laws, its head office is situated in Qatar, or its place of effective management and control is in Qatar.
Permanent establishment (PE)
The definition of PE was recently updated in February 2023. Based on the amendment to the tax law, a PE is defined as a “having a fixed place of business” and “the realization of profit”. Further guidance on the definition of PE is expected to be published in the amendments to the executive regulations in the near future.