Effective 17 May 2023, new foreign tax credit provisions are introduced, whereby a credit is allowed for foreign tax paid on foreign source income that has become taxable in Qatar (see Sec. 5.1.), subject to certain conditions. Previously, Qatar did not allow foreign tax credits, but attached tax credits could be deducted as an expense.

The foreign tax credit is limited to the amount of Qatari tax on such income. The credit is available if the following conditions are met:

The foreign tax has been charged by a foreign country; and
The foreign tax has been effectively paid (other than any foreign tax that has been refunded by the foreign country).

Below is a summary of the available methods for various income tax streams based on domestic law.

Royalty Copyright	IC
Capital Gains	IC
Dividends	IC
Interest	IC
Royalty Patent	IC
Sales	IC
Service Management	IC
Service Technical	IC
Royalty Trademark	IC

The credit column shows the type of foreign tax credit granted when the receiving country receives a payment. Four abbreviations are used for the type of foreign tax credit available:

NC means no credit but foreign withholding taxes can be deducted.
OC means ordinary credit, i.e., credit for foreign withholding taxes (e.g., withholding taxes).
IC means indirect credit, i.e., credit for underlying corporate taxes as well as foreign withholding taxes.
ND means no credit and no deduction for any foreign withholding taxes incurred.

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