Doha.biz – Technology, Business, Health, Life, Travel, Advertising, Real Estate, and Much More
Sunday February 25th 2018

Insider

Archives

Ernst & Young praises enactment of QFC tax law


DOHA: After much anticipation, the tax law (Law No. 13 of the year 2010) pertaining to the Qatar Financial Centre (QFC) has been enacted by Qatar and it will help further promote Qatar as a location for financial services companies in the Middle East, says international audit firm, Ernst & Young.

The law, which is effective from 1 January 2010, introduces a flat rate of corporate income tax of 10 percent for companies licensed to operate in the QFC. The law has been published in the Official Gazette.

Commenting on the enactment of the law, Finbarr Sexton, Senior Tax Partner at Ernst & Young Qatar, said in a statement issued yesterday: “The enactment of the QFC tax law follows a collaborative and consultative process between the Ministry of Finance, the QFC tax department, professional firms and other interest groups in Qatar and the result is a progressive and well drafted law. Its enactment brings certainty for multinational financial services companies operating in the QFC regarding the tax position of their activities and, given the low corporate income tax rate of 10 percent, will serve to further promote Qatar as a location for financial services companies in the Middle East.” The QFC tax law sees the establishment of a stand-alone QFC tax department separate from the state tax department. The tax system is that of a self-assessment regime whereby the responsibility is placed on companies to file their own tax returns and pay the appropriate tax by the due date. Importantly, the law also allows for tax returns to be filed electronically.

Regarding the benefits which companies can obtain under the QFC tax law, John Bradley, Senior Director at Ernst & Young Qatar, adds: “The QFC law is based on modern tax principles. In addition to providing tax exemptions for certain dividends and profits on share disposals, it enables companies to avail of reliefs and benefits under Qatar’s rapidly growing Double Tax Treaty Network. With double tax treaties already concluded with countries such as Luxembourg, the UK, Singapore, Switzerland and the Netherlands, Qatar is now well placed to serve as a financial services hub in the Middle East. “ [Read More]