QFC Issues Enhanced Tax Rules, Regulations to Attract Further Business

Doha, July 18 (QNA) - The Qatar Financial Centre (QFC) Authority announced the enactment of the recently amended Tax Rules and Regulations, as part of its ongoing commitment to further enhance and develop its platform, and following a public consultation. According to a press release issued by QFC today, the amendment clarifies the definition of 'Local Source Taxable Profits' and includes a provision to exclude profits of non-regulated firms that are derived from services used outside of the State of Qatar. The amendments are applicable provided that the firm's accounts are audited and reported on by an external auditor, at least 30 percent of the firm's income can be attributed to activities undertaken by the QFC firm in Qatar, the firm employs at least three full time employees and that the services are not rendered under an arrangement the sole or main purpose of which is the avoidance of tax. The statement said that other minor changes were also introduced to clarify the definition of Qatari Owned Companies and the application of the late payment charge. In addition, the amendments now allow for the service of documents and notices to be made by email or other designated means of electronic transmission. "This recent enhancement widens the scope for firms who provide services to overseas entities to avail of tax reliefs," explained QFC Authority Chief Finance and Tax Officer Hamed Al Saadi. "These changes have been made taking into account international tax initiatives such as the BEPS project," he added. The Qatar Financial Centre (QFC) is an onshore business and financial centre located in Doha, providing an excellent platform for firms to do business in Qatar and the region. The QFC offers its own legal, regulatory, tax and business environment, which allows 100 percent foreign ownership, 100 percent repatriation of profits, and charges a competitive rate of 10 percent corporate tax on locally sourced profits. (QNA)