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Taxation in Qatar – Attracting Investment

The government of Qatar recently introduced a lower headline rate of corporate income tax, wider range of tax treaty structuring options, and changes in withholding tax obligations.

(PresseBox) (Berlin, ) The object was to promote and endorse, further, the in-pouring and continued influx of interested foreign investors in Qatar, and to provide tax relief from corporate tax cost for both current and newly established businesses, as well as for permanent and non-residents. The tax bracket system from a minimum rate of zero to maximum of 35 percent was superseded by a substantially simplified taxable profit flat rate of ten percent. This rate, which applies as of the beginning of 2010, will exponentially reduce the tax cost, as well as dropping the administrative burden on companies and increasing certainty regarding group’s taxation affairs.

The new tax law stipulates a five percent withholding tax on payments made in respect to technical remunerations, as well as on certain interest: commission, brokerage, management, attendance and service fees paid to non-residents which was set at seven percent.

However, this new tax rates are not applied to entities established in Qatar Financial Centre. Such entities, being located of Qatar, are not considered non-residents to whom the withholding tax obligations attach. Qatar offers the some of the world’s lowest tax rates in an ongoing effort to stimulate foreign
investment.

Author: Mohammad Sultan Al-Ali, ECOVIS Qatar, Doha, Qatar
www.ecovis.com

ECOVIS AG Steuerberatungsgesellschaft

Ecovis is a leading global consulting firm with its origins in Continental Europe. It has over 3,300 staff operating in 30 countries. Its consulting focus and core competencies lie in the areas of tax consultation, auditing, legal advice and accounting and management consulting services. The particular strength of Ecovis is the combination of personal advice at a local level with the general expertise of an international and interdisciplinary network of professionals. Every Ecovis office can rely on qualified specialists in its back offices as well as on the specific industrial or national know-how of all the Ecovis experts worldwide. This diversified expertise provides clients with effective support, especially in the fields of international transactions and investments - from preparation in the client's native country to support in the target country. In its consulting work Ecovis concentrates mainly on mid-sized firms. Both nationally and internationally, its one-stop-shop concept ensures all-round support in legal, fiscal, managerial and administrative issues. The name Ecovis, a combination of the terms economy and vision, expresses both its international character and its focus on the future and growth.
www.ecovis.com