A Qatari resident company that derives income from sources in Qatar is subject to corporate tax in Qatar.

Effective 17 May 2023, a Qatari resident entity deriving income from a permanent establishment outside Qatar is not subject to tax on such income, provided that the income is taxable in the jurisdiction in which the permanent establishment is located.

Effective 17 May 2023, provisions are introduced for the taxation of the following income arising from sources outside Qatar, provided such income is not attributable to a foreign permanent establishment:

Income from immovable property located abroad, including profits from the sale of such properties;
Dividends, royalties, interest, technical service fees, and other services;
Income derived from obtaining rights to distribute products or services;
Income derived from marketing, procurement, financial services, communication services, and broadcasting services; and
Income derived from granting guarantees or other financial support.

The executive regulations detailing the application of the amendments are yet to be issued.

Companies that are wholly owned by Qatari and/or Gulf Cooperation Council (GCC) nationals who are resident in Qatar are not subject to corporate tax in Qatar. Qatari tax resident companies that are not wholly owned by Qatari and/or GCC nationals are taxed on the share of profits ultimately attributable to the non-Qatari or non-GCC national shareholders and/or GCC nationals who are not tax residents in Qatar.

Dividends

Dividends received are not taxable in Qatar, provided they are distributed out of profits subject to Qatar tax or from companies that are exempt from Qatar tax. However, any dividend received by a Qatari resident company from a foreign entity that is not connected with the permanent establishment of the Qatari company is taxable in Qatar as ordinary income.

Capital Gains

Capital gains are subject to tax in Qatar as ordinary income. However, effective from 13 December 2018, capital gains realized on the revaluation of assets used as a share-in-kind contribution in a Qatari joint stock company are exempt, provided the shares are not sold within 5 years. Capital gains realized on the sale of listed shares are also exempt.

Effective 17 May 2023, an exemption applies to capital gains realized on the following, provided that tax has been paid outside Qatar on such capital gains:

The disposal of an immovable property located outside Qatar;
The disposal of a property located outside Qatar through a foreign permanent establishment of a Qatar resident;
The transfer of a foreign permanent establishment of a Qatar resident; and
The disposal of non-Qatari shares, interests, or other rights.

The executive regulations detailing the application of the amendments are yet to be issued.

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