Qatar

CIT is levied on a company's Qatar-source income. Some examples of Qatar-source income include the following:

• Income derived from an activity carried on in Qatar.
• Income derived from contracts wholly or partially performed in Qatar.
• Income from real estate situated in Qatar, including income from the sale of shares of companies with assets consisting of mainly real estate situated in Qatar.
• Income from shares in companies resident in Qatar.

Inventory valuation

Inventory must be valued in accordance with International Financial Reporting Standards (IFRS).

Capital gains

Any chargeable gains on the sale of capital assets are taxed as ordinary income. Specific rules exist in respect of gains realised on the disposal of real estate. Capital gains generated by non-residents are an area of increased focus for the GTA.

Under the Regulations, capital gains tax returns should be submitted within 30 days from the sale of the asset or concluding the contract, whichever is earlier.

Dividend income

Dividends are not taxable in Qatar if received from profits that have been subject to Qatar tax or from companies that are exempt from Qatar tax. However, any dividend received by a Qatari entity from a foreign entity which is not linked to a Permanent Establishment of the Qatari entity, is taxable in the State of Qatar.

Interest income

Interest arising in Qatar and bank interest realised outside Qatar, if it results from the taxpayer’s activity in Qatar, are taxed as ordinary income. In addition, any interest received by a Qatari entity from a foreign entity which is not linked to a Permanent Establishment of the Qatari entity, is taxable in the State of Qatar.

Royalty income

Royalty income is taxed as ordinary income.

Foreign income

As stated above, on 2 February 2023, Qatar published Law No.11 of 2022 amending several provisions of the Tax Law in the official Gazette.

The amendments have preserved the overarching principle of taxing income arising from sources in Qatar. However, the amendments specify various types of income generated outside Qatar that will now be subject to income tax in Qatar. This includes income generated from real estate, immovable property, dividends, royalties, interest, and technical service fees as long as such categories of income are not attributable to a foreign permanent establishment of the Qatari Project.

There is also an indication that income derived by a Qatari Project from a broad range of services provided outside Qatar (such as marketing services, procurement and financial intermediation services, fees paid to obtain guarantees or similar financial support, communication services, broadcasting services, etc.) will now be subject to income tax in Qatar.