Under the new regime, which has effect from 1 January 2010, all QFC registered companies are subject to a 10% corporation tax to be charged on locally sourced profits. In addition, an advance transaction ruling scheme has been incorporated into the regime to give firms more certainty of tax treatment.
Furthermore, the regime, which will be administered on a self-assessment basis, also includes tax incentives for reinsurance, captive insurance and asset management firms.
Shashank Srivastava, acting CEO of the QFCA said: “It is important to have a viable tax regime that ensures a sustainable economy. We believe we have achieved the ideal balance for companies that operate here and the State of Qatar, which provides such world class services and access to one of the world’s most attractive investment pools.”
The regime has been developed over the past three years in conjunction with the Ministry of Economy and Finance, and the financial services industry, the QFC Authority said in a statement, and replaces the temporary tax holiday which ended on 31 December 2009.