QATAR NEWS

 

Qatar new tax rate reduced to 10%
November 17, 2009, Doha - Qatar

Qatar has become the latest Gulf state to slash its corporate tax rate, amid attempts to attract foreign investment to the region.

The Qatari government has decided to cut the rate from 35% to 10%, effective January 1, 2010.
The new rate will be the state's first flat corporate tax rate. Previously, seven strata existed, ranging from 0% for companies that had annual incomes up to QR100,000 ($137,000), to 35% for companies who generate over QR5 million.

Exceeding (QAR)	Not Exceeding (QAR)	Rate (%)
0	100,000	Exempt
100,001	500,000	10
500,001	1,000,000	15
1,000,001	1,500,000	20
1,500,001	2,500,000	25
2,500,001	5,000,000	30
5,000,001 and above		35

The new tax law will be levied on the renues of business activities, contracts - which are being partly or wholly implementted - properties, including the sales of stakes in the shareholding companies or the privately-owned companies whose assets are maily comprised of properties. Revenues of the natural sources excavation and exploration in the state and the loan interest rates obtained within the state are also taxable.

The move is designed to attract foreign investment to the state which was voted as the world's friendliest tax environment in a survey earlier this year by Forbes 2009 Tax Misery & Reform Index.

Qatar is the latest Gulf state to cut its corporate tax rate in recent years. Five years ago Saudi Arabia reduced its rate from 45% to 20%, while Kuwait and Oman have also made cuts.

---