Qatar drops foreign corporate tax to 10 percent

25/06/2009

Investors and entrepreneurs looking to work or invest in a tax-friendly environment may now be even more likely to do so in the state of Qatar, after its decision to drop foreign corporate tax rates to just 10%, down from 35%.

The decision was announced on Wednesday by a financial ministry official who stated, “Qatar is unifying the corporate tax rate to help attract foreign investments to the country.”

The new law is now subject only to approval from the country’s ruler in the next few days.

Qatar is often cited as one of the best places to do business and was named the friendliest tax environment in the world in the Forbes 2009 Tax Misery & Reform Index. Firms registered in Qatar and in neighbouring Arab states do not have to pay any corporation tax at all, which has attracted foreign entrepreneurs to register companies in the state.

The moves to attract foreign investors and companies is intended to reduce the country’s reliance on oil and gas revenues which currently account for the 60% of Qatar’s gross domestic product.