Qatar’s Council of Ministers approved the proposed amendments to the Income Tax Law, on 4 December 2024, for the implementation of measures aligned with the Pillar Two global minimum tax framework.
As part of the inclusive framework on Base Erosion and Profit Shifting (BEPS), Qatar has committed to implementing a Global Minimum Tax rate of 15%. This includes introducing a 15% qualified domestic minimum top-up tax (QDMTT) for in-scope MNE groups, which has been presented to the Consultative Council (parliament) for consideration. The bill also includes the introduction of the Pillar Two income inclusion rule (IIR) and the undertaxed payment/profit rule (UTPR) to ensure a minimum corporate tax of 15% for large multinational (MNE) groups with annual consolidated revenue of at least EUR 750 million in at least two of the preceding four fiscal years and proposes implementing a qualified domestic minimum top-up tax (QDMTT) for members of in-scope groups and certain safe harbours.
The IIR and QDMTT apply for financial periods beginning on or after 31 December 2023, while the UTPR generally applies for financial periods beginning on or after 31 December 2024.
