Weekly Spotlight: New Qatari Income Tax Law Approved

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.

Weekly Spotlight: General Tax Authority to be Estabilished in Qatar

This week the spotlight is on legal and regulatory developments in Qatar, where the country’s Finance Ministry has announced it will establish a General Tax Authority. The Ministry also announced they will not introduce Income Tax on individuals or VAT in 2019. The Authority will be established as a stand-alone entity but will be supervised by the Finance Ministry. It will be responsible for implementing all tax laws. The Authority will be able to set up all related bylaws, procedures and instructions to implement tax legislation. It will also review and assess tax return forms submitted by establishments and collect taxes from relevant entities. In addition, it will represent the country in the relevant international and regional organisations as well as at international conferences and events. Finally, it will have the power to sign agreements with other countries to prevent double taxation. The Ministry added they will issue additional exemptions for key economic sectors and will not impose tax on investments in shares and profits. However, they will introduce an excise tax on goods which negatively affect health from the start of next year. It will include a 100% tax on tobacco and its products and energy drinks and a 50% tax on sugary drinks.

Weekly spotlight: Amendments to Tender and Auction Law in Qatar to be Reviewed

This week the spotlight is on legal and regulatory developments in Qatar, where the Shoura Council has referred Qatar Decree-Law No. 18/2018 amending the 2015 Tender and Auction Law, Qatar Law No. 24/2015 to the Finance and Economic Affairs Committee to review and report back to the Council on.

The law details the classification process for those transacting with the Government, involving the issuing of certificates by the Government Procurement Regulatory Department (GPRD) at the Finance Ministry. Foreign and local companies are classified as contractors, service providers or suppliers. Tenderers applying to be classified are required to submit details on personnel, quality assurance, security and other information. The Council’s President had invited the committees to meet to discuss some things during the holiday, but a formal decision of memorandum cannot be issued to the Government until a new Council session has opened.

Elsewhere, the Council has referred a draft Media City Law to the Cultural Affairs and Information Committee to consider and report back to the Council on. The draft law would give the Media City legal personality and an independent budget. It would manage and develop media activities, attract international media, digital media and technology companies and media research and training institutions. It would provide services to licensed companies operating there, including granting licenses for television and radio broadcasting and for publishing and distributing newspapers, magazines and books.

Weekly Spotlight: Draft Qatari DNA Law Approved

This week the spotlight is on legal developments in Qatar, where the Cabinet has approved a draft DNA Law and referred it to the Shoura Council to consider. If approved it will replace Qatar Law No. 9/2013 and under the Law, the Interior Ministry will establish a DNA database and will be the relevant authority. It will be devoted to preserving genetic fingerprints resulting from samples taken under the Law. It will be illegal to take biological or biochemical samples and to carry out DNA tests, or store data in a DNA database, for evidence, investigation or trial, without a Public Prosecution decision or a competent court decision to do so.

Data recorded in the DNA database will be confidential and may not be viewed without the permission of the Interior Minister, the Public Prosecution or the competent court.
In addition, DNA tests and data kept in the DNA database will be authoritative unless proven otherwise, except where provided for in Chapter 2, Part 6 of the Family Law.