The Shura Council, chaired by His Excellency the Speaker, Hassan bin Abdullah Al Ghanim, approved amendments to the Income Tax Law during its weekly session on December 23, 2024. The amendments, aimed at introducing a global minimum corporate tax of 15%, uphold fairness and tax parity between local and multinational companies operating in Qatar.
The General Tax Authority (GTA) clarified that the amendments target global multinational companies and enterprises with foreign branches generating annual revenues exceeding QAR 3 billion. This includes Qatari companies with branches abroad and international companies with branches in Qatar, ensuring comprehensive applicability.
The GTA emphasized that the new tax framework excludes individual taxpayers and local companies, maintaining the existing 10% corporate tax rate. This exclusion supports regulatory consistency and fairness while ensuring that local businesses are not adversely impacted.
The amendment delivers substantial economic benefits by protecting Qatari multinational companies from paying the 15% tax abroad, ensuring tax revenues remain within Qatar. Without local collection, the 15% tax would instead be imposed by other countries, potentially reducing Qatar’s share of global tax revenues.
Aligned with Qatar National Vision 2030, the GTA continues to support international efforts to combat tax base erosion and profit shifting. The amendment reflects Qatar’s commitment to implementing global regulations in line with the Organisation for Economic Co-operation and Development (OECD) and G20 standards, fostering sustainable development and economic transparency.
The law allows multinational companies to file their tax returns for the Domestic Minimum Top-up Tax (QDMTT) in Qatar, ensuring compliance with the global standards defined under Pillar I and Pillar II of the OECD’s initiatives. These measures were endorsed in October 2021 by over 140 countries, addressing tax challenges arising from the digital economy and protecting national tax bases.
By adopting these amendments, Qatar reinforces its leadership in aligning with global tax frameworks, while safeguarding its economic interests and promoting transparency. With these steps, Qatar affirms its role in shaping a balanced global tax system that fosters fairness and sustainable growth.
