This week the spotlight is on tax developments in Qatar, where the country’s Finance Ministry has recently announced the issuing of a new Income Tax Law, Qatar Law No. 24/2018, which replaces the current Income Tax Law, Qatar Law No. 21/2009. Under the new law, the corporate income tax rate remains unchanged at 10%.
The key changes include income connected with agreements relating to petrochemical industries will be subject to corporate income tax at 35% and the penalties for late registration, filing tax returns and paying taxes have been increased significantly. In addition, the 7% withholding tax rate has been removed and a single withholding tax rate of 5% now applies to payments made by Qatari residents to non-residents with no permanent establishment in Qatar in respect of royalties, interest, commissions and services performed in Qatar by non-residents.