The Cabinet of Qatar approves a draft law on VAT and income tax
Another step closer to VAT implementation
The Cabinet of Qatar has approved a draft law on Value Added Tax (VAT) and income tax and their draft executive regulations.
The draft law on VAT is in accordance with the unified GCC VAT agreement. The agreement acts as the basis for the domestic VAT legislation in each Member State by stipulating certain principles, which must be followed by all members, while allowing the countries to opt for different VAT treatments in relation to some supplies.
In addition, it has also been reported that draft legislation on income tax has been considered which will amend certain aspects of the Income Tax Law disseminated by Law No. 21 of 2009 and Law No. 17 of 2014, which exempt the share of non-Qatari investors in the profits of some companies and investment funds from income tax.
Texts of the draft law and regulations are not yet available as the draft law still needs the approval of the Shura (Consultative) Council and the Emir.