Qatar: Preferential tax treatment requires compliance with economic substance regulations

The economic substance regulations were issued in Qatar

The economic substance regulations were issued in Qatar

The Ministry of Finance issued Decision No. 20 of 2021 (dated 17 October 2021 and published in the official gazette on 4 November 2021) providing the economic substance regulations.

The regulations require certain entities engaged in specified activities to demonstrate economic substance in Qatar if they want to continue to benefit from a preferential tax regime. Pursuant to the regulations, eligible entities are those that conduct a “covered service activity” or “an intellectual property activity” and also that benefit from a preferential tax system in Qatar (which can include entities registered in investment free zones and science and technology park free zone).

Read a December 2021 report [PDF 807 KB] prepared by the KPMG member firm in Qatar 


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