Advisory Council of Qatar has rejected a proposal to exempt foreign investors from income tax and capital gains on local equity market investments.
On February 19, 2014, the State Cabinet had approved a draft law by the Financial and Economic Affairs Committee and the State Cabinet that sought to allow foreign stock investors such as individuals, corporate and institutions, that exempt from taxes on capital gains and income from dividends, interest from bonds, debentures and treasury bills. The Cabinet had discussed that the exemption would help raise the foreign funds into the equity market of Qatar from individuals and institutions like pension, hedge, mutual funds and investment.
The draft law has rejected by the Advisory Council on the exemption and calling for review of 3 articles. The Advisory council argued that allowing favorable conditions to foreign equity investors on local equity market would not promote the Qatari economy given that many foreign investors leave the market after getting a profit.
