An unique and innovative incentive have been introduced by the Qatar Financial Centre (QFC) Authority as amendments to the Tax Regulations and Tax Rules regarding using new areas of tax relief and tax losses, mostly providing an advantage for Qatar owned entities to elect for a zero tax rate to apply to their operations in the QFC.

The updates will facilitate Qatar owned entities investing in Qatar by permitting them to opt for the zero tax rates on their operations performed from the Qatar Financial Centre (QFC). It will also facilitate them to invest overseas by introducing beneficial changes to the taxation of structures, for example Special Purpose Companies and Holding Companies established in the Qatar Financial Centre.

Deputy Chief Executive Officer of the QFC Authority, Yousef Mohammed Al-Jaida, said: “The QFC Authority’s mandate is to support enterprises in Qatar and help the State of Qatar meet its development objectives. The most recent amendments to the QFC’s Tax Regulations and Rules introduce changes which create new opportunities for Qatari-owned entities and demonstrate our commitment to continuing to meet our mandate.”

Chief Financial and Tax Officer, QFC Authority, Sheikh Salman Al Thani, added: “The QFC Authority strives constantly to keep its tax regime as up to date as possible and to provide a first class tax and legal environment for QFC-licensed firms.  These changes to our Tax Regulations and Rules following our latest review support the QFC’s evolving strategy by ensuring alignment with structures such as Holding Companies and Special Purpose Companies available in the QFC. Qatari-owned entities stand particularly to benefit and will now find it advantageous to set up structures in the QFC which previously they could only establish abroad.”