- Income Tax Law
- Chapter one: Definitions
- Chapter two: Scope of the tax
- Chapter three: Calculation of the tax
- Chapter four: Tax obligations
- Chapter five: Powers and duties of the Department
- Chapter six: Objection and appeals
- Chapter seven: Collection and refund of the tax
- Chapter eight: Financial penalties and sanctions
- Chapter nine: General provisions
- Untitled
FOREWARD
�
His Highness the Deputy of the Amir issued on 17 November 2009
�
Law No. 21 of 2009 issuing the Income Tax Law.
�The law, which will apply on income arising on or after 01 January
�2010, is issued in the Arabic language.
�
This is a translation provided by the Public Revenues and Taxes
�Department to facilitate the understanding of the law for English
�speaking taxpayers. It has no authority.
�
The only text of the law that has authority is the Arabic text.
�
We, Tamim Bin Hamad Al Thani Deputy of the Amir of the State of Qatar, Having perused the Constitution; And Decree-Law No. 11 of the year 1993 concerning Income Tax; And the proposal of the Minister of Economy and Finance; And the draft Law submitted by the Council of Ministers; And the opinion of the Consultative Council;
Have decided the following law:
Article 1
The provisions of the Income Tax Law attached to this Law shall come into force.
Article 2
Subject to the provisions of Article (20) of the attached law, the provisions of the attached law do not apply to the following:
1-private associations and foundations and private foundations of public interest constituted in accordance with the provisions the laws governing each of them.
2- private bodies registered in the State or registered in another State and authorized to operate in the State, provided that they do not aim to achieve profits.
3- Salaries, wages, allowances and the like.
4- Gross income from legacies and inheritances.
Article 3
The Minister of Economy and Finance shall issue the executive regulations and decisions required for the implementation of the attached law. And, until these regulations and decisions are issued, the regulations and decisions currently in force shall remain applicable in so far as they are not in contradiction with the provisions of the attached law.
Article 4
�
Decree-Law No. 11 of the year 1993 concerning the Income Tax and any provision in contradiction with the provisions of this law and the attached law Shall be repealed.
Exemptions that are applicable at the date of entry into force of the attached law shall remain effective until the expiry of their period.
Article 5
All competent authorities, each within its own competence, shall execute this law, which shall come into force as of the first day of January 2010 and shall be published in the Official Gazette.
Tamim Bin Hamad Al-Thani Deputy of the Amir of the State of Qatar
Issued at Diwan Amiri on: 29 /11 /1430 A.H. Corresponding to : 17/11/2009 A.D.
INCOME TAX LAW
Chapter one: Definitions
Article 1
In applying the provisions of this law, the following expressions and terms shall have the meanings assigned thereto unless the context otherwise requires.
-Tax: The income tax.
�-Ministry: The Ministry of Economy and Finance.
�-Minister: The Minister of Economy and Finance.
�-Department: The administrative unity concerned with the application of
�
this law. -Director: The director of the Department. -Activity: Any profession, vocation, service, trade, industry, speculation,
contractual work or any business carried on to derive a profit or an income including the exploitation of a movable or immovable property. -Taxpayer: A natural or a legal person subject to tax under the provisions of this law.
-The person in charge: The chairman of the board of directors, a delegated member, an authorized manager or any person who represents or runs the company or enterprise.
-Taxable year: twelve months starting on the first day of January and ending on the thirty first day of December of the same year. -Accounting period: The period for which the taxpayer prepares his accounts. -Gross income: Total income and profits derived by the taxpayer from the sources mentioned in this law. -Net income: Gross income less allowable deductions in accordance with the provisions of this law. -Taxable income: Net income after subtracting losses provided for in Article 10 of this law.
-Return: A statement in which the taxpayer acknowledges the amount of taxable income and the tax due in accordance with the form prepared for this purpose.
-Resident: 1- A natural person who meets any of the following:
�a-has a permanent home in the State.
�
b- has been in the State for more than one hundred and eighty-three (183) consecutive or separate days during any twelve (12) month period.
c- has his centre of vital interests in the State.
2- A body corporate that meets any of the following: a- It is incorporated under Qatari laws. b-Its head office is situated in the State. c-Its place of effective management is situated in the
State.
-Permanent Establishment: A fixed place of business through which the business of a taxpayer is wholly or partly carried on, including , for instance, a branch, office, factory, workshop, mine, oil or gas well, quarry, a building site, an assembly project or a place of exploration, extraction or exploitation of natural resources. Permanent establishment also includes the activity carried on by the taxpayer through a person acting on behalf of the taxpayer or in his interest, other than an agent of an independent status
-Royalties: Payments of any kind made as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or discs used for radio or television broadcasting, any patent, trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience.
-Technical fees: Payments of any kind made as consideration for managerial or technical or consultancy services.
Chapter two: Scope of the tax
Section 1: Imposition of the tax
Article 2
An annual tax shall be imposed on the taxpayer’s taxable income derived
from sources in the State during the previous taxable year.
Notwithstanding the provisions of the previous paragraph, the tax shall be
imposed on:
1-Bank interest and returns realized outside the State provided that they are derived from amounts resulting from the activity of the taxpayer in the State; and
2-Commissions due under agency, brokerage or commercial representation agreements accrued outside the State in respect of activities carried on in the State.
Article 3
Income derived from the State shall include: 1-Gross income derived from an activity carried on in the State; 2-Gross income derived from contracts wholly or partly performed
in the State; 3-Gross income from real estate situated in the State including the sale of shares in companies or partnerships the assets of which consist mainly of real estate situated in the State; 4-Gross income from shares in companies resident in the State or listed on its stock markets; 5-Consideration for services paid to head offices, branches or
related companies; 6- Interest on loans obtained in the State; 7-Gross income from the exploration, extraction or exploitation of
natural resources situated in the State; and 8-Gross income subject to tax in the State under a double taxation agreement.
Article 4
�
Notwithstanding other tax exemptions provided for under special laws or international agreements or under the provisions of Articles 51 to 56 of this law, the following items of income shall be exempt from tax:
1-Bank interest and returns due to natural persons other than those carrying on a taxable activity in the State, whether or not resident in the State.
2-Interest and returns on public treasury bonds, development bonds and public corporation bonds.
3-Capital gains on the disposal of real estate and securities derived by natural persons provided that the real estate and securities disposed of are not part of the assets of a taxable activity.
4-Dividends and other income from shares if the amounts distributed during a taxable year were taken from profits that were:
a-subject to the tax under this law; or
b-distributed by a company the income of which is exempt from tax under this law or other laws.
5-Gross income from handcraft activities that do not use machines provided that the gross income does not exceed one hundred thousands (100,000) Riyals per year, the average number of employees does not exceed 3 during the taxable year and the activity is carried on in one single establishment, in accordance with the limits and conditions provided for in the executive regulations of this law.
6-Gross income from agricultural and fishing activities.
7-Gross income of non Qatari air and sea transport companies operating in the State, subject to reciprocity.
8-Gross income of Qatari natural persons resident in the State, including their shares in the profits of legal persons.
9-Gross income of legal persons resident in the State and wholly owned by Qatari nationals.
Article 5
The accounting period of a taxpayer who carries on an activity shall be the taxable year.
However, the taxpayer may, after obtaining the approval of the Department, adopt an accounting period that is different from the taxable year in accordance with the provisions of the executive regulations of this law.
The accounting period of a taxpayer shall be twelve months, subject to the following:
1-Where the taxpayer starts the activity after the beginning of the taxable year, the accounting period shall start from the date of the beginning of the activity. The first accounting period may not be less than six months nor more than eighteen months. In all cases, the tax shall be calculated on the taxable income of the actual accounting period.
2- Where the activity is liquidated, the accounting period shall run from the end of the previous accounting period until the end of liquidation.
3- Where the activity is ceased, assigned or sold, the accounting period shall run from the end of the previous accounting period until the date of cessation, assignment or sale.
4-Where the taxpayer carries on a temporary activity the period of which does not exceed 18 months, the accounting period shall be the period of activity.
Article 6
The taxpayer shall determine the taxable income on the basis of the accruals accounting method used in commercial accounting in accordance with international accounting standards, and subject to the provisions of this law and its executive regulations.
The taxpayer may not use another method of accounting, except upon the approval of the Department.
Chapter three: Calculation of the tax
Section 1: Taxable income
Article 7
Taxable income shall be determined on the basis of the gross income derived from all transactions carried out by the taxpayer after subtracting allowable deductions and losses provided for in Article 10 of this law.
Allowable deductions mean expenses and costs incurred by the taxpayer that satisfy the following requirements:
1- They are necessary to derive the gross income;
2-They are actually incurred and supported by documentary evidence;
3-They do not increase the value of fixed assets used in the activity; and
4- They are related to the taxable year.
Article 8
Allowable deductions include mainly the following, in accordance the executive regulations of this law:
1- Costs of raw materials, consumables and services required for carrying on the activity.
2- Interest on loans used in the activity.
3- Salaries, wages, end of services benefits and similar payments including contributions to set up retirement pensions or end of service payments or contributions to investment funds for the employees.
4- Rents.
5- Insurance premiums.
6- bad debts.
�
Law No. 21 of 2009 issuing the Income Tax Law. This is a translation provided by the Public Revenues and Taxes The only text of the law that has authority is the Arabic text. We, Tamim Bin Hamad Al Thani Deputy of the Amir of the State of Qatar, Having perused the Constitution; And Decree-Law No. 11 of the year 1993 concerning Income Tax; And the proposal of the Minister of Economy and Finance; And the draft Law submitted by the Council of Ministers; And the opinion of the Consultative Council;
Have decided the following law:
The provisions of the Income Tax Law attached to this Law shall come into force.
Subject to the provisions of Article (20) of the attached law, the provisions of the attached law do not apply to the following:
1-private associations and foundations and private foundations of public interest constituted in accordance with the provisions the laws governing each of them.
2- private bodies registered in the State or registered in another State and authorized to operate in the State, provided that they do not aim to achieve profits.
3- Salaries, wages, allowances and the like.
4- Gross income from legacies and inheritances.
The Minister of Economy and Finance shall issue the executive regulations and decisions required for the implementation of the attached law. And, until these regulations and decisions are issued, the regulations and decisions currently in force shall remain applicable in so far as they are not in contradiction with the provisions of the attached law.
Decree-Law No. 11 of the year 1993 concerning the Income Tax and any provision in contradiction with the provisions of this law and the attached law Shall be repealed.
Exemptions that are applicable at the date of entry into force of the attached law shall remain effective until the expiry of their period.
All competent authorities, each within its own competence, shall execute this law, which shall come into force as of the first day of January 2010 and shall be published in the Official Gazette.
Tamim Bin Hamad Al-Thani Deputy of the Amir of the State of Qatar
Issued at Diwan Amiri on: 29 /11 /1430 A.H. Corresponding to : 17/11/2009 A.D.
INCOME TAX LAW
Chapter one: Definitions
In applying the provisions of this law, the following expressions and terms shall have the meanings assigned thereto unless the context otherwise requires.
-Tax: The income tax. this law. -Director: The director of the Department. -Activity: Any profession, vocation, service, trade, industry, speculation,
contractual work or any business carried on to derive a profit or an income including the exploitation of a movable or immovable property. -Taxpayer: A natural or a legal person subject to tax under the provisions of this law.
-The person in charge: The chairman of the board of directors, a delegated member, an authorized manager or any person who represents or runs the company or enterprise.
-Taxable year: twelve months starting on the first day of January and ending on the thirty first day of December of the same year. -Accounting period: The period for which the taxpayer prepares his accounts. -Gross income: Total income and profits derived by the taxpayer from the sources mentioned in this law. -Net income: Gross income less allowable deductions in accordance with the provisions of this law. -Taxable income: Net income after subtracting losses provided for in Article 10 of this law.
-Return: A statement in which the taxpayer acknowledges the amount of taxable income and the tax due in accordance with the form prepared for this purpose.
-Resident: 1- A natural person who meets any of the following: b- has been in the State for more than one hundred and eighty-three (183) consecutive or separate days during any twelve (12) month period.
c- has his centre of vital interests in the State.
2- A body corporate that meets any of the following: a- It is incorporated under Qatari laws. b-Its head office is situated in the State. c-Its place of effective management is situated in the
State.
-Permanent Establishment: A fixed place of business through which the business of a taxpayer is wholly or partly carried on, including , for instance, a branch, office, factory, workshop, mine, oil or gas well, quarry, a building site, an assembly project or a place of exploration, extraction or exploitation of natural resources. Permanent establishment also includes the activity carried on by the taxpayer through a person acting on behalf of the taxpayer or in his interest, other than an agent of an independent status
-Royalties: Payments of any kind made as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, or films or discs used for radio or television broadcasting, any patent, trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience.
-Technical fees: Payments of any kind made as consideration for managerial or technical or consultancy services.
Chapter two: Scope of the tax
Section 1: Imposition of the tax
An annual tax shall be imposed on the taxpayer’s taxable income derived
from sources in the State during the previous taxable year.
Notwithstanding the provisions of the previous paragraph, the tax shall be
imposed on:
1-Bank interest and returns realized outside the State provided that they are derived from amounts resulting from the activity of the taxpayer in the State; and
2-Commissions due under agency, brokerage or commercial representation agreements accrued outside the State in respect of activities carried on in the State.
Income derived from the State shall include: 1-Gross income derived from an activity carried on in the State; 2-Gross income derived from contracts wholly or partly performed
in the State; 3-Gross income from real estate situated in the State including the sale of shares in companies or partnerships the assets of which consist mainly of real estate situated in the State; 4-Gross income from shares in companies resident in the State or listed on its stock markets; 5-Consideration for services paid to head offices, branches or
related companies; 6- Interest on loans obtained in the State; 7-Gross income from the exploration, extraction or exploitation of
natural resources situated in the State; and 8-Gross income subject to tax in the State under a double taxation agreement.
Notwithstanding other tax exemptions provided for under special laws or international agreements or under the provisions of Articles 51 to 56 of this law, the following items of income shall be exempt from tax:
1-Bank interest and returns due to natural persons other than those carrying on a taxable activity in the State, whether or not resident in the State.
2-Interest and returns on public treasury bonds, development bonds and public corporation bonds.
3-Capital gains on the disposal of real estate and securities derived by natural persons provided that the real estate and securities disposed of are not part of the assets of a taxable activity.
4-Dividends and other income from shares if the amounts distributed during a taxable year were taken from profits that were:
a-subject to the tax under this law; or
b-distributed by a company the income of which is exempt from tax under this law or other laws.
5-Gross income from handcraft activities that do not use machines provided that the gross income does not exceed one hundred thousands (100,000) Riyals per year, the average number of employees does not exceed 3 during the taxable year and the activity is carried on in one single establishment, in accordance with the limits and conditions provided for in the executive regulations of this law.
6-Gross income from agricultural and fishing activities.
7-Gross income of non Qatari air and sea transport companies operating in the State, subject to reciprocity.
8-Gross income of Qatari natural persons resident in the State, including their shares in the profits of legal persons.
9-Gross income of legal persons resident in the State and wholly owned by Qatari nationals.
The accounting period of a taxpayer who carries on an activity shall be the taxable year.
However, the taxpayer may, after obtaining the approval of the Department, adopt an accounting period that is different from the taxable year in accordance with the provisions of the executive regulations of this law.
The accounting period of a taxpayer shall be twelve months, subject to the following:
1-Where the taxpayer starts the activity after the beginning of the taxable year, the accounting period shall start from the date of the beginning of the activity. The first accounting period may not be less than six months nor more than eighteen months. In all cases, the tax shall be calculated on the taxable income of the actual accounting period.
2- Where the activity is liquidated, the accounting period shall run from the end of the previous accounting period until the end of liquidation.
3- Where the activity is ceased, assigned or sold, the accounting period shall run from the end of the previous accounting period until the date of cessation, assignment or sale.
4-Where the taxpayer carries on a temporary activity the period of which does not exceed 18 months, the accounting period shall be the period of activity.
Article 6
The taxpayer shall determine the taxable income on the basis of the accruals accounting method used in commercial accounting in accordance with international accounting standards, and subject to the provisions of this law and its executive regulations.
The taxpayer may not use another method of accounting, except upon the approval of the Department.
Chapter three: Calculation of the tax
Section 1: Taxable income
Taxable income shall be determined on the basis of the gross income derived from all transactions carried out by the taxpayer after subtracting allowable deductions and losses provided for in Article 10 of this law.
Allowable deductions mean expenses and costs incurred by the taxpayer that satisfy the following requirements:
1- They are necessary to derive the gross income;
2-They are actually incurred and supported by documentary evidence;
3-They do not increase the value of fixed assets used in the activity; and
4- They are related to the taxable year.
Article 8
Allowable deductions include mainly the following, in accordance the executive regulations of this law:
1- Costs of raw materials, consumables and services required for carrying on the activity.
2- Interest on loans used in the activity.
3- Salaries, wages, end of services benefits and similar payments including contributions to set up retirement pensions or end of service payments or contributions to investment funds for the employees.
4- Rents.
5- Insurance premiums.
6- bad debts.
�The law, which will apply on income arising on or after 01 January
�2010, is issued in the Arabic language.
�
�Department to facilitate the understanding of the law for English
�speaking taxpayers. It has no authority.
�
�
Article 1
Article 2
Article 3
Article 4
� Article 5
Article 1
�-Ministry: The Ministry of Economy and Finance.
�-Minister: The Minister of Economy and Finance.
�-Department: The administrative unity concerned with the application of
�
�a-has a permanent home in the State.
�
Article 2
Article 3
Article 4
� Article 5
Article 7