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QNA
Doha
Qatar currently does not have plans to impose tax on income, General Tax Authority (GTA) President Ahmed bin Issa Al Mohannadi has said.
The value-added tax (VAT), which is set to be introduced in the future, is still under legislation but Qatar has no reservations in rolling out the regime, Mohannadi told Al-Sharq, asserting that the country was still part of a framework signed in 2017 by the GCC nations for the implementation of VAT. While Saudi Arabia and the UAE have launched VAT, other member nations, including Qatar, have pushed timelines several times.
However, the country applies a corporate income tax of 10 percent through the Income Tax Law No 24 of 2018 on the earnings of companies with certain exceptions. As per this law, the profits of companies that are wholly owned by Gulf Cooperation Council (GCC) nationals, and the share of corporate profits attributable to GCC nationals who are resident in Qatar, will remain exempt from tax.
Besides, the Law No. 25 of 2018 provides for the introduction of a “selective tax” (excise tax) on certain health-damaging goods, including a 100 percent tax on tobacco and its derivatives and energy drinks, and a 50 percent tax on sugary drinks.
Mohannadi said Qatar collected QR1.2 billion in selective taxes in 2019, highlighting the importance of tax in diversifying the revenue sources of the country.
The objective of the selective tax is to reduce consumption of unhealthy goods, which reduces the burden on the health sector in the country, he said. A study is currently underway to expand the scope of the selective tax on unhealthy foods.
Taxes are a major income for most countries around the world, especially the developed ones, and they have achieved sustainable economic growth despite the presence of tax rates higher than those in Qatar, Mohannadi said.
Taxes in Qatar are among the lowest in the world, he said, adding that they were kept that way to encourage investments.
However, Mohannadi said, tax, or the lack of it, was not the only factor that leads to a choice of investment destination; business, production, labour and other costs that affect profitability play a part too.
The GTA president said since the establishment of the authority in 2018, it has been gradually increasing the tax awareness of the community by inculcating a tax culture.
In 2021, a large number of taxpayers have registered with the authority and submitted their tax returns, he said.
Doha
Qatar currently does not have plans to impose tax on income, General Tax Authority (GTA) President Ahmed bin Issa Al Mohannadi has said.
The value-added tax (VAT), which is set to be introduced in the future, is still under legislation but Qatar has no reservations in rolling out the regime, Mohannadi told Al-Sharq, asserting that the country was still part of a framework signed in 2017 by the GCC nations for the implementation of VAT. While Saudi Arabia and the UAE have launched VAT, other member nations, including Qatar, have pushed timelines several times.
However, the country applies a corporate income tax of 10 percent through the Income Tax Law No 24 of 2018 on the earnings of companies with certain exceptions. As per this law, the profits of companies that are wholly owned by Gulf Cooperation Council (GCC) nationals, and the share of corporate profits attributable to GCC nationals who are resident in Qatar, will remain exempt from tax.
Besides, the Law No. 25 of 2018 provides for the introduction of a “selective tax” (excise tax) on certain health-damaging goods, including a 100 percent tax on tobacco and its derivatives and energy drinks, and a 50 percent tax on sugary drinks.
Mohannadi said Qatar collected QR1.2 billion in selective taxes in 2019, highlighting the importance of tax in diversifying the revenue sources of the country.
The objective of the selective tax is to reduce consumption of unhealthy goods, which reduces the burden on the health sector in the country, he said. A study is currently underway to expand the scope of the selective tax on unhealthy foods.
Taxes are a major income for most countries around the world, especially the developed ones, and they have achieved sustainable economic growth despite the presence of tax rates higher than those in Qatar, Mohannadi said.
Taxes in Qatar are among the lowest in the world, he said, adding that they were kept that way to encourage investments.
However, Mohannadi said, tax, or the lack of it, was not the only factor that leads to a choice of investment destination; business, production, labour and other costs that affect profitability play a part too.
The GTA president said since the establishment of the authority in 2018, it has been gradually increasing the tax awareness of the community by inculcating a tax culture.
In 2021, a large number of taxpayers have registered with the authority and submitted their tax returns, he said.
