Qatar has established the General Tax Authority (GTA), which will be in charge of implementing all tax laws and improving tax compliance in the country.
GTA has been established as a separate entity, under the supervision of the Ministry of Finance, and is in line with Qatar’s plans to reduce the country’s dependence on hydrocarbon resources.
The law establishing the GTA mandates the authority to implement all tax laws and setup all related bylaws, procedures and instructions and be responsible for their implementation, review and assess tax return forms and collect taxes from subject entities. It also mandates GTA to represent the State of Qatar in relevant international and regional organisations and at international conferences and events and sign tax agreements with other countries to encourage economic cooperation and joint investments.
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*General Tax Authority established as part of Qatar’s plans to
reduce the country's dependence on hydrocarbon resources
*GTA will be in charge of implementing all tax laws and improving
tax compliance
*Part of the GTA’s mandate will be to implement the Income
Tax law number 24 of 2018 relating to corporate income tax and
the Excise Tax law number 25 of 2018
*Income Tax law number 24 of 2018 amends the previous law
on corporate income tax and stipulates that the salaries and wages of
citizens and residents shall not be subject to any tax and grants
exemptions for equity shares listed on a recognised stock exchange,
profits of banking deposits and companies working in the
agricultural sector and fisheries
*Marine and aerial transportation are also exempted from tax on
condition of reciprocity
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The GTA will support the goals of the Qatar National Vision 2030 to ensure the “sustained welfare” of citizens and residents, and provide a mechanism for Qatar to reduce its dependence on a hydrocarbon-based economy.
The GTA will regulate the work of the taxation system through financial instruments that positively influence the level of welfare of citizens and residents alike, as well as improve public services such as healthcare, education, roads and infrastructure.
The taxation system also lays the foundation for a “better economic future that is strong and sustainable.”
Part of the GTA’s mandate will be to implement the Income Tax law (number 24 of 2018) relating to corporate income tax and the Excise Tax law (number 25 of 2018).
The Income Tax law (number 24 of 2018) amends the previous law on corporate income tax and stipulates that the salaries and wages of citizens and residents shall not be subject to any tax and grants exemptions for equity shares listed on a recognised stock exchange, profits of banking deposits and companies working in the agricultural sector and fisheries.
Marine and aerial transportation are also exempted from tax on condition of reciprocity, an official release yesterday said.
The corporate income tax on foreign companies working in Qatar or on the stake of foreign partners in joint ventures remains at the same level, which is 10% of the taxable income.
The Excise Tax law (number 25 of 2018) came into force on January 1 this year and imposes a tax on certain “health-damaging” goods. It includes a list of the “targeted goods”, with a 100% tax on tobacco products, alcohol and energy drinks and a 50% tax on carbonated drinks, and a 100% tax on special purpose goods.
“The Excise Tax represents a real investment in human capital and is designed to help build a healthier society by discouraging the consumption of harmful goods,” the release said.
The adoption of tax laws (Law number 24 of 2018 on the Income Tax and Law number 25 of 2018 on the Excise Tax) is in line with the decision to establish the GTA, an official note said.
The law establishing the GTA mandates the authority to implement all tax laws and setup all related bylaws, procedures and instructions and be responsible for their implementation, review and assess tax return forms and collect taxes from subject entities. It also mandates GTA to represent the State of Qatar in relevant international and regional organisations and at international conferences and events and sign tax agreements with other countries to encourage economic cooperation and joint investments.
__________________________________
*General Tax Authority established as part of Qatar’s plans to
reduce the country's dependence on hydrocarbon resources
*GTA will be in charge of implementing all tax laws and improving
tax compliance
*Part of the GTA’s mandate will be to implement the Income
Tax law number 24 of 2018 relating to corporate income tax and
the Excise Tax law number 25 of 2018
*Income Tax law number 24 of 2018 amends the previous law
on corporate income tax and stipulates that the salaries and wages of
citizens and residents shall not be subject to any tax and grants
exemptions for equity shares listed on a recognised stock exchange,
profits of banking deposits and companies working in the
agricultural sector and fisheries
*Marine and aerial transportation are also exempted from tax on
condition of reciprocity
__________________________________
The GTA will support the goals of the Qatar National Vision 2030 to ensure the “sustained welfare” of citizens and residents, and provide a mechanism for Qatar to reduce its dependence on a hydrocarbon-based economy.
The GTA will regulate the work of the taxation system through financial instruments that positively influence the level of welfare of citizens and residents alike, as well as improve public services such as healthcare, education, roads and infrastructure.
The taxation system also lays the foundation for a “better economic future that is strong and sustainable.”
Part of the GTA’s mandate will be to implement the Income Tax law (number 24 of 2018) relating to corporate income tax and the Excise Tax law (number 25 of 2018).
The Income Tax law (number 24 of 2018) amends the previous law on corporate income tax and stipulates that the salaries and wages of citizens and residents shall not be subject to any tax and grants exemptions for equity shares listed on a recognised stock exchange, profits of banking deposits and companies working in the agricultural sector and fisheries.
Marine and aerial transportation are also exempted from tax on condition of reciprocity, an official release yesterday said.
The corporate income tax on foreign companies working in Qatar or on the stake of foreign partners in joint ventures remains at the same level, which is 10% of the taxable income.
The Excise Tax law (number 25 of 2018) came into force on January 1 this year and imposes a tax on certain “health-damaging” goods. It includes a list of the “targeted goods”, with a 100% tax on tobacco products, alcohol and energy drinks and a 50% tax on carbonated drinks, and a 100% tax on special purpose goods.
“The Excise Tax represents a real investment in human capital and is designed to help build a healthier society by discouraging the consumption of harmful goods,” the release said.
The adoption of tax laws (Law number 24 of 2018 on the Income Tax and Law number 25 of 2018 on the Excise Tax) is in line with the decision to establish the GTA, an official note said.
