QFC Tax Regulations
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Enactment Notice
QATAR FINANCIAL CENTRE
QFC TAX REGULATIONS
These regulations are hereby enacted pursuant to Article 9 of Law No. (7) of 2005
Ali Ahmed Al-Kuwari
Minister of Commerce and Industry of the State of QatarAli Sharif Al-Emadi
Minister of Finance of the State of QatarIssued at: The Qatar Financial Centre, Doha
On: 21 December 2020
Corresponding to: 6 Jumada 1 1442
Part 1: Part 1: Application, Commencement and Interpretation
Article 1 - Citation
These Regulations may be referred to as the QFC Tax Regulations.
Article 2 - Application
(1) These Regulations are made by theMinister pursuant to Article 9 of theQFC Law and define the scope, computation and administration of taxation ofQFC Entities .(2) These Regulations apply to allQFC Entities and toPartners andMembers in, and directors, officers, employees, trustees andRepresentatives of,QFC Entities .(3) Subject to Article 2(4), to the fullest extent permitted by theQFC Law , the laws, rules and regulations of theState ofQatar in relation to taxation do not apply toQFC Entities .(4) For the purposes of Article 2(3), aQFC Entity shall only include—a) anLLC , aQFC Partnership orOther Permitted Form of QFC Entity incorporated inQatar ; or(b) a branch registered under the Companies Regulations 2005, the Limited Liability Partnership Regulations 2005, the Partnership Regulations 2007 or any other regulations made under theQFC Law .Amended (as from 18th June 2014) Article 3 - Commencement
The commencement date of these Regulations is provided for in the issuing resolution.
Article 4 - Language
In accordance with Article 9 of the
QFC Law , these Regulations are written in the English language and the text thereof shall be the official original text. Any translation into another language shall not be authoritative and in the event of any discrepancy between the English text of these Regulations and any other version, the English text shall prevail.Part 2: Part 2: General Scheme of Taxation, Residence and the Charge to Tax
Article 6 - Policy Statement on the General Scheme of Taxation
QFC Entities are taxed on theirLocal Source Profits , with only one category ofTaxable Profits .Article 7 - Scope of Regulations
These Regulations provide for the imposition, administration and collection of tax in accordance with Article 17 of the
QFC Law in relation toQFC Entities .Article 8 - Residence and Non-Residence
(1) AQFC Entity shall be regarded asResident in Qatar for the purposes of these Regulations if—(a) it is incorporated inQatar under the Company Regulations 2005, the Limited Liability Partnership Regulations 2005, the Partnership Regulations 2007 or any other regulations made under theQFC Law or rules made by theRegulatory Authority orQFC Authority ; or(b) its place of effective management is inQatar .(2) Where aQFC Entity is treated as resident in a territory outsideQatar and not resident inQatar for the purposes of anyDouble Taxation Agreement , suchQFC Entity is treated as notResident in Qatar for the purposes of these Regulations.(3) AQFC Entity , which is a branch, shall not be regarded as aResident in Qatar in accordance with Article 8(1)(b) unless the place of effective management of the enterprise of which it is a branch is inQatar .Amended (as from 18th June 2014) Article 9 - The Charge to Tax
(1) Subject to the provisions of these Regulations, corporation tax shall be charged for eachAccounting Period at the standard rate on everyQFC Entity in respect of the full amount of itsLocal Source Taxable Profits .(2) The standard rate of corporation tax is 10%.Article 10 - Local Source
(1)Taxable Profits areLocal Source if they arise in or are derived fromQatar .(1A) Notwithstanding any other provisions in these Regulations, profits arising in or derived fromQatar by aQFC Entity that is not anAuthorised Firm from the provision of services for use outsideQatar are deemed not to beLocal Source Taxable Profits to the extent that the conditions set out in Rule 1A are met.(2) Without prejudice to the generality of Article 10(1),Local Source Taxable Profits are deemed to include—(a)Passive Interest Income ; and(b) notwithstanding the provisions of Article 13, profits arising from interest income received by or accrued to aFinancial Institution to the extent that—(i) the profits are attributable to the initiation of the underlying loan inQatar by, or on behalf of, theFinancial Institution ; and(ii) the risk of default in respect of either (or both) the interest and principal of the loan is borne by theFinancial Institution inQatar ,provided that where either condition (i) or (ii) is met, but not both, 50% of the relevant profits shall be deemed to beLocal Source Taxable Profits .(3)Local Source Taxable Profits shall exclude any profit derived from—(a) immovable property located outsideQatar ;(b)Permanent Establishments of theQFC Entity outsideQatar ; and(c) notwithstanding Article 10(2)(a), the receipt ofPassive Interest Income where the borrower is notResident in Qatar (and the borrowing is not substantially undertaken by or through aPermanent Establishment of the borrower inQatar ) or where the borrower isResident in Qatar and the borrowing is substantially undertaken by or through aPermanent Establishment of the borrower outsideQatar .Amended (as from 12th June 2017). Article 11 - Taxable Profits and Chargeable Profits
(1) TheTaxable Profits of aQFC Entity for anAccounting Period are theChargeable Profits of thatQFC Entity , as reduced by the set off of any tax losses andGroup Relief under the provisions of Part 5.(2) TheChargeable Profits of aQFC Entity for anAccounting Period are theAccounting Profits , as defined in Article 15, of thatQFC Entity from itsLicensed Activity and as adjusted by the provisions of these Regulations, excluding Part 5.Amended (as from 18th June 2014) Article 12 - Currency of Tax Calculation
(1) TheChargeable Profits of aQFC Entity shall be calculated in the currency of its accounts.(2) Where the currency of the accounts of aQFC Entity is not Qatari Riyals theChargeable Profits shall, subject to Article 12(3), be converted into Qatari Riyals at the closing exchange rate applying on the last day of theAccounting Period in which theChargeable Profits arose.(3) AQFC Entity may elect to use, for the purposes of convertingChargeable Profits into Qatari Riyals, the average exchange rate applying for theAccounting Period in which theChargeable Profits being converted arose.(4) An election under Article 12(3) shall be made in writing to theTax Department within 6 months of the end of theAccounting Period to which it is to first apply and, once made, shall apply to all subsequentAccounting Periods .(5) This Article applies to the calculation of tax losses in the same way as it applies to the calculation ofChargeable Profits .Article 13 - Non Residents
(1) TheChargeable Profits of aQFC Entity notResident in Qatar shall be the amount ofChargeable Profits as are attributable to itsPermanent Establishment inQatar .(2) TheChargeable Profits attributable under Article 13(1) to aPermanent Establishment shall be the same as theChargeable Profits it would have made if it were a distinct and separate entity, engaged in the same or similar activities under the same or similar conditions, dealing wholly independently with the enterprise of which it is aPermanent Establishment .(3) In attributingChargeable Profits to aPermanent Establishment under Article 13(2) thePermanent Establishment shall be assumed to have the same credit rating as the enterprise of which it is aPermanent Establishment .(4) In attributingChargeable Profits to aPermanent Establishment under Article 13(2) there shall be attributed to thePermanent Establishment such equity and loan capital as appears to theTax Department to be just and reasonable.(5) In attributingChargeable Profits to aPermanent Establishment under Article 13(2), a deduction shall be available to thePermanent Establishment in respect of interest incurred by the enterprise of which it is aPermanent Establishment on indebtedness utilised by thePermanent Establishment in carrying out its activities. If only part of the indebtedness is utilised by thePermanent Establishment in carrying out its activities, a proportion of interest as appears to theTax Department to be just and reasonable shall be available for deduction.Amended (as from 18th June 2014) Part 3: Part 3: Accounting Profit and Accounting Periods
Article 14 - Policy Statement on Accounting Profit and Accounting Periods
QFC Entities are expected to draw up accounts underIFRS or other acceptable GAAP. This Part also deals with a change of accounting basis and definesAccounting Periods .Article 15 - Accounting Profit
(1) TheAccounting Profit of aQFC Entity is the profit, including any capital profits, before the payment of tax and dividends as reflected in theQFC Entity's profit and loss account or income statement, based on accounts prepared in accordance withGAAP and the laws of theQFC .(2) Subject to Article 15(3), for the purposes of this Article accounts prepared in accordance withGAAP means—(a) accounts prepared in accordance withIFRS ,UK GAAP orUS GAAP ; or(b) accounts prepared in accordance with standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).(3) AQFC Entity may apply to theTax Department to use, for the purposes of corporation tax, a basis of accounting different to that set out in Article 15(2).(4) An application under Article 15(3) shall—(a) be in writing;(b) be submitted to theTax Department prior to the start of theAccounting Period to which it relates;(c) set out the reasons why theQFC Entity wishes to use a different basis of accounting; and(d) provide details of the basis of accounting theQFC Entity wishes to adopt.(5) TheTax Department shall, within 60 days of receiving an application under Article 15(3), notify theQFC Entity of its decision in writing.(6) If theTax Department fails to issue a notice under Article 15(5) within 60 days of receiving an application under Article 15(3) the like consequences shall ensue as would have ensued if theTax Department had, within 60 days of the application being received, issued a notice under Article 15(5) accepting the application.(7) Where it is necessary, in order to arrive at theAccounting Profit for anyAccounting Period , to apportion to specificAccounting Periods theAccounting Profit for any period for which the accounts of aQFC Entity have been made up, it shall be lawful to make such an apportionment in proportion to the number of days in the respective periods.Amended (as from 18th June 2014) Article 16 - Change in Basis of Accounting
(1) This Article applies when in a change period—(a) the basis of accounting adopted by aQFC Entity under Article 15 is changed and the change gives rise, in accordance withGAAP , to a prior period adjustment to closing reserves; or(b) there is a change of accounting policy in drawing up aQFC Entity's accounts from one period of account to the next and the change gives rise, in accordance withGAAP , to a prior period adjustment to closing reserves.(2) For the purposes of this Article "change period" means theAccounting Period in which the change in accounting basis or change of accounting policy is first adopted.(3) Where Article 16(1) applies the prior period adjustment shall be treated as though it took place on the first day of the change period and shall be included in theAccounting Profit for that period.(4) In this Article "closing reserves" means the reserves at the end of theAccounting Period immediately prior to the change period.Amended (as from 18th June 2014) Article 17 - Accounting Period
(1) AnAccounting Period of aQFC Entity shall begin for the purposes of corporation tax whenever—(a) theQFC Entity , not then being within the charge to tax under these Regulations, comes within it by commencing activities within the terms of itsQFC Licence ; or(b) anAccounting Period of theQFC Entity ends without it then ceasing to be within the charge to tax under these Regulations.(2) Subject to Article 17(3), anAccounting Period of aQFC Entity shall end for the purposes of corporation tax on the first occurrence of any of the following—(a) the expiration of 12 months from the beginning of theAccounting Period ;(b) the date to which theQFC Entity makes up its accounts;(c) theQFC Entity ceasing to have any source of income within the terms of itsQFC Licence ;(d) theQFC Entity becomingResident in Qatar ; or(e) the occurrence of one or more of the events mentioned in Article 18(1).(3) TheTax Rules may provide for an extension of the term of anAccounting Period (Tax 8).Amended (as from 18th June 2014) Article 18 - Deemed Disposals
(1) This Article applies whenever aQFC Entity —(a) gives up or has itsQFC Licence revoked;(b) ceases to beResident in Qatar ; or(c) appoints a liquidator at the commencement of a winding up under the Insolvency Regulations 2005.(2) Subject to Articles 18(3) and (4), on the occurrence of any of the events in Article 18(1) theQFC Entity will be treated as though, immediately prior to the occurrence of the first such event, it disposed of and immediately reacquired all of its assets and liabilities at theirMarket Value .(3) When aQFC Entity ceases to beResident in Qatar , without an event in Article 18(1)(a) or (c) occurring, Article 18(2) does not apply to any assets and liabilities retained by aPermanent Establishment situated inQatar of thatQFC Entity .(4) Article 18(2) will only be applied once to the sameQFC Entity but where Article 18(3) applies, Article 18(2) will not be regarded as having been applied in respect of the assets and liabilities retained by thePermanent Establishment situated inQatar .Amended (as from 18th June 2014) Part 4: Part 4: Computational Provisions
Article 19 - Policy Statement on Computational Provisions
Subject to any other provisions of these Regulations in computing the
Chargeable Profits of aQFC Entity for anAccounting Period , expenses, costs or other disbursements may be deducted to the extent that they have been taken into account in arriving at theAccounting Profit of theQFC Entity for thatAccounting Period and are incurred for the purpose of generatingLocal Source Profits or incurred in the operation of a business carried on for the purpose of generating such profits.Article 20 - Scope of Charge
The
Chargeable Profits of aQFC Entity shall include allLocal Source income less expenses incurred in generating that income.Amended (as from 18th June 2014) Article 21 - Deductions Not Allowable and Charitable Donations
(1) Subject to any other provisions in these Regulations, in computing theChargeable Profits of aQFC Entity for anAccounting Period no deduction shall be available in respect of—(a) expenses not actually incurred or not supported by documentary evidence;(b) depreciation of tangible fixed assets, except as provided for by Article 22;(c) financial sanctions imposed by theTax Department and fines or penalties imposed by any other government agency, inQatar or overseas;(d) any costs connected with unlawful acts;(e) amortisation of intangible fixed assets, except as provided for by Article 24;(f) waivers of debts betweenConnected Persons ;(g) a provision for general bad debts or any other provision of a general nature and any bad debt incurred in relation to a loan where the associated interest income was not subject to tax under these Regulations;(h) share based remuneration, except as provided for by Article 25;(j) overseas corporation tax, except as provided for by Article 40;(k) any expenditure incurred generating income that is exempt from tax under these Regulations;(l) any expenses, costs or other disbursements which are not shown, to the satisfaction of theTax Department , to have been incurred in generating Local Source income; or(m) expenditure incurred in connection with obtaining or seeking to obtain aQFC Licence .(2) Where expenditure is incurred for the generation ofLocal Source income and non-Local Source income, the amount of expenditure to be allocated to each source shall be apportioned on a basis which is demonstrated to theTax Department to be just and reasonable.(3) Subject to any other provisions in these Regulations (including Article 21(1) and Article 21(2)), in computing theChargeable Profits of aQFC Entity for anAccounting Period , expenditure incurred inQatar prior to the granting of itsQFC Licence , or the commencement of activities within the terms of itsQFC Licence , shall be deemed to have been incurred by aQFC Entity on the first day of its firstAccounting Period under these Regulations.(4) In computing theChargeable Profits of aQFC Entity for anAccounting Period , aQFC Entity is entitled to a deduction in respect of donations made by thatQFC Entity in theAccounting Period concerned to aCharity established in theState , up to a maximum amount of 5% of theChargeable Profits of thatQFC Entity for thatAccounting Period , as calculated prior to the deduction of any donations under this Article.Amended (as from 18th June 2014) Article 22 - Depreciation
(1) Subject to Articles 22(2) and 23, aQFC Entity shall be entitled to a deduction for the depreciation or other impairment of a tangible fixed asset acquired for the purpose of itsLicensed Activity of an amount equal to the depreciation charged in its accounts.(2) Where depreciation is not calculated in accordance with GAAP, the deduction shall be restricted to the amount which would have been charged under GAAP.(3) The total tax deduction for the depreciation of an asset shall not exceed the original cost of the asset.(4) The reversal of a depreciation charge on an asset is taxable up to the original cost of the asset.(5) The original cost of an asset to aQFC Entity shall be the lower of the cost incurred by theQFC Entity in acquiring the asset and theMarket Value of the asset at the time it was acquired by theQFC Entity .Amended (as from 18th June 2014) Article 23 - Limits on Depreciation
(1) The deduction under Article 22(1) shall be limited to 5% per annum of original cost, as defined by Article 22(5) for the following classes of assets—(a) aircraft;(b) ships;(c) industrial buildings and offices; and(d) infrastructure assets including but not limited to roads, bridges and port facilities.(2) Where depreciation has been limited under Article 23(1) and in a subsequentAccounting Period the depreciation charged in the accounts in respect of that asset is less than 5% of original cost, a tax deduction for depreciation shall be allowed at the annual rate of 5%, provided that—(a) the asset is still owned by theQFC Entity and is being used for the purpose of itsLicensed Activity ;(b) the total accumulated tax deduction does not exceed original cost; and(c) the total accumulated tax deduction does not exceed the total accumulated depreciation of the asset.Amended (as from 18th June 2014) Article 24 - Amortisation of Intangible Fixed Assets
(1) AQFC Entity shall be entitled to a deduction for the amortisation of anIntangible Fixed Asset acquired for the purpose of itsLicensed Activity of an amount equal to the amortisation charged in its accounts.(2) Subject to Article 24(4), in the case of anInternal Intangible Fixed Asset , the amortisation deduction under Article 24(1) shall not exceed the amount of taxable income generated from charges for the use, licence or exploitation of the asset.(3) AnInternal Intangible Fixed Asset is anyIntangible Fixed Asset acquired from aConnected Person by aQFC Entity and used (to any extent) to generateTaxable Profits by granting rights to use, licensing or otherwise exploiting theIntangible Fixed Asset .(4) Where anInternal Intangible Fixed Asset is acquired from aConnected Person by aQFC Entity for the purposes of both:(a) generatingTaxable Profits by granting rights to use, licensing or otherwise exploiting theInternal Intangible Fixed Asset ; and(b) use by thatQFC Entity to carry on itsLicensed Activity , excluding activities described in Article 24(4)(a),theInternal Intangible Fixed Asset shall be deemed to be two distinct notional assets for the purposes of Article 24(2), reflecting an asset used solely for the purposes described in Article 24(4)(a) and an asset used solely for the purposes described in Article 24(4)(b) and Article 24(2) shall only operate to limit an amortisation deduction under Article 24(1) in respect of the notional asset used solely for the purposes described in Article 24(4)(a).(5) For the purposes of Article 24(4), the amortisation deduction available under Article 24(1) in respect of theInternal Intangible Fixed Asset shall be apportioned between the two notional assets described in Article 24(4) on a basis which is demonstrated to theTax Department as being just and reasonable.Amended (as from 18th June 2014) Article 25 - Share Based Remuneration
Remuneration of employees of
QFC Entities which is linked to the share price performance of shares listed on a recognised stock exchange shall be allowed as a deduction for anAccounting Period only if it meets the following conditions—(a) it is charged in the profit and loss account of theQFC Entity ; and(b) it is charged in the profit and loss account of the consolidated accounts of the quoted parentCompany .Part 5: Part 5: Loss Relief
Article 26 - Policy Statement on Loss Relief
Tax losses are calculated on the same basis as
Chargeable Profits . Losses can be carried forward but not back, and can be relieved against the profits ofQFC Entities , which areCompanies orLLPs , in the sameGroup . The carry forward of losses may be restricted in the event of a change inOwnership .Amended (as from 18th June 2014) Article 27 - Calculation of Tax Losses
Tax losses shall be computed in a like manner and in respect of the same period as
Chargeable Profits . Relief shall not be given more than once in respect of the same loss.Amended (as from 18th June 2014) Article 28 - Carry Forward of Tax Losses
(1) Where, in anyAccounting Period aQFC Entity carrying on aLicensed Activity generates a tax loss, the loss shall be set off against anyChargeable Profits generated by thatQFC Entity in succeedingAccounting Periods , for so long as it continues to have a source of income within the terms of itsQFC Licence .(2) Any tax loss carried forward to a succeedingAccounting Period shall be set off in full against theChargeable Profits of that succeeding period before any of the loss can be carried forward to a second succeedingAccounting Period .(3) Losses arising before these Regulations come into force are not available for carry forward.Article 29 - Transfer of Licensed Activity Without Change in Ownership
(1) This Article applies where aQFC Entity (the "predecessor") ceases to carry on aLicensed Activity , and anotherQFC Entity (the "successor") begins to carry it on, and at that time aPerson with a51% Interest in the predecessor has a51% Interest in the successor which he continues to hold for at least 6 months from the date the successor begins to carry on theLicensed Activity .(2) Subject to Article 29(3), tax losses available to the predecessor, and not utilised as at the date of transfer of theLicensed Activity , shall be available to the successor as though they were losses carried forward under Article 28 as at the date of transfer.(3) Tax losses transferred to the successor shall only be available againstChargeable Profits arising from theLicensed Activity referred to in Article 29(1).Amended (as from 18th June 2014) Article 30 - Disallowance of Tax Losses on a Change in Ownership
(1) Where—(a) within anOwnership change period there is a major change in the nature or conduct of theLicensed Activities carried on by aQFC Entity ; or(b) at any time after the scale of the activities carried on by aQFC Entity under itsQFC Licence become negligible, and before any significant revival of those activities, there is a change in the Ownership of theQFC Entity , no relief shall be available for tax losses carried forward from anAccounting Period ending before the change inOwnership to anAccounting Period ending after the change inOwnership .(2) An "Ownership change period" is the period commencing one year before and ending two years after a change inOwnership .(3) For the purposes of this Article anAccounting Period shall be treated as ending on the day of the change inOwnership .(4) The apportionment ofChargeable Profits or tax losses between the period before and after a change inOwnership shall be on a time basis unless it can be shown, to the satisfaction of theTax Department , that such a method would produce an unjust or unreasonable result for theQFC Entity when such other method may be used as appears to theTax Department to produce a just and reasonable result.(5) A major change in the nature of theLicensed Activities shall include a major change in the contents of theQFC Licence .Amended (as from 18th June 2014) Article 31 - Determination of Change in Ownership
(1) For the purposes of Article 30 there has been a change in theOwnership of aCompany if—(a) a singlePerson acquires more than half of theOrdinary Share Capital of theCompany ; or(b) two or morePersons each acquire a holding of 10% or more of theOrdinary Share Capital of theCompany , and those holdings together amount to more than half of theOrdinary Share Capital of theCompany .(2)Ownership of aCompany shall include both direct and indirectOwnership ofOrdinary Share Capital .(3) For the purposes of Article 30, there has been a change in theOwnership of aPartnership if there is a change in theOwnership of—(a) at least half of thePartnership assets; or(b) at least half of the income earning rights in thePartnership .(4) A determination of whether there has been a change inOwnership under this Article shall be restricted to a review ofCompany shareholdings orOwnership of aPartnership , as the case may be, within any 12 month period.Amended (as from 18th June 2014) Article 32 - Group Relief
(1) Where in anyAccounting Period aQFC Entity that is aCompany or anLLP (the "Surrendering Entity ") has incurred a tax loss, the amount of the loss may be set off for the purposes of corporation tax against theChargeable Profits of a secondQFC Entity that is aCompany or anLLP (the "Claimant Entity ") for its correspondingAccounting Period by way of a relief from corporation tax called "Group Relief ".(2)Group Relief shall be available where theSurrendering Entity and theClaimant Entity are both members of the sameGroup .(3)Group Relief for anAccounting Period shall be allowed as a deduction against theClaimant Entity's Chargeable Profits for the period after the deduction of tax losses brought forward from previousAccounting Periods under Article 28.(4)Group Relief may, by election, be allowed against theClaimant Entity's Chargeable Profits before the deduction of tax losses brought forward under Article 28. An election under this paragraph shall be made in writing to theTax Department within 18 months from the end of theAccounting Period to which the election relates.(5) A claim toGroup Relief shall be made in accordance with the provisions of theTax Rules (TAX 9).(6) A payment forGroup Relief , up to the amount of that relief, shall not be taken into account in computingChargeable Profits or tax losses of either theSurrendering Entity or theClaimant Entity .(7) If theTax Department discover that anyGroup Relief which has been given is, or has become, excessive they may make an assessment to tax in the amount which in their opinion ought to be charged. If an assessment under this Article is made because aClaimant Entity fails, or is unable, to amend its return under TAX 9.5.5, the assessment is not out of time under Article 129 if it is made within one year from—(a) the date on which theSurrendering Entity gives notice of the withdrawal of consent or, if later, sends a copy of a new notice of consent, to theClaimant Entity under TAX 9.5.3; or(b) the date on which theTax Department sends theClaimant Entity a copy of a notice containing their directions under TAX 9.5.4.(8) An assessment made under this Article may be appealed under Article 133.Amended (as from 18th June 2014) Article 33 - Corresponding Accounting Periods
(1) For the purposes of Group Relief anyAccounting Period of theClaimant Entity which falls wholly or partly within anAccounting Period of theSurrendering Entity shall correspond to thatAccounting Period .(2) Where anAccounting Period of theSurrendering Entity and a correspondingAccounting Period of theClaimant Entity do not coincide—(a) the tax losses of theSurrendering Entity available to surrender to theClaimant Entity shall be reduced by applying the fraction—
A B
and;(b) thewhere—Chargeable Profits of theClaimant Entity , against which the tax losses of theSurrendering Entity are to be set off, shall be reduced by applying the fraction—A C
A is the length of the period common to the twoAccounting Periods ;
B is the length of theAccounting Period of theSurrendering Entity ; and
C is the length of the correspondingAccounting Period of theClaimant Entity .Amended (as from 18th June 2014) Article 34 - Definition of a Group
(1) For the purposes of these Regulations,QFC Entities shall be deemed to be members of aGroup if oneQFC Entity is a 75% Subsidiary of the other or both are 75% Subsidiaries of a thirdCompany or anLLP .(2) Subject to Article 34(3), aCompany is a 75% Subsidiary of anotherCompany or anLLP if and so long as not less than 75% of itsOrdinary Share Capital is owned directly or indirectly by that otherCompany orLLP .(3) ACompany shall not be treated as a 75% Subsidiary of anotherCompany orLLP unless thatCompany orLLP is—(a) beneficially entitled to not less than 75% of any profits available forDistribution to equity holders of the subsidiaryCompany ; and(b) beneficially entitled to not less than 75% of any assets of the subsidiaryCompany available to its equity holders on a winding up.(4) In determining whether oneCompany is a 75% Subsidiary of anotherCompany orLLP , the otherCompany orLLP shall be treated as not being the owner of anyOrdinary Share Capital which it owns directly in the first mentionedCompany if the shares are held with the sole or main intention of deriving a profit from their resale.(5) AnLLP is a 75% Subsidiary of anotherCompany orLLP (5) if and so long as—(a) not less than 75% of the assets of theLLP ; and(b) not less than 75% of the income earning rights in theLLP ,are beneficially owned by that otherCompany orLLP .(6) AnLLP shall not be treated as a 75% Subsidiary of anotherCompany orLLP unless thatCompany orLLP is—(a) beneficially entitled to not less than 75% of any profits available forDistribution to holders of anLLP interest, as applicable, in the subsidiaryLLP ; and(b) beneficially entitled to not less than 75% of any assets of the subsidiaryLLP available to holders of anLLP interest, as applicable, in the subsidiaryLLP on a winding up.Amended (as from 18th June 2014) Article 35 - Companies Joining or Leaving a Group
(1) Subject to Article 35(2),Group Relief is available only if theSurrendering Entity and theClaimant Entity are members of the sameGroup throughout the whole of theSurrendering Entity's Accounting Period to which the claim relates and throughout the whole of the correspondingAccounting Period of theClaimant Entity .(2) Where on any occasion twoQFC Entities become or cease to be members of the sameGroup , then for the purposes of determining the availability and amount ofGroup Relief it shall be assumed in respect of eachQFC Entity that on that occasion (unless a trueAccounting Period of theQFC Entity then begins or ends) anAccounting Period of theQFC Entity ends and a new one begins.(3)Chargeable Profits and tax losses of the trueAccounting Period shall be apportioned between the deemedAccounting Periods on a time basis according to their lengths.Amended (as from 18th June 2014) Part 6: Part 6: Double Taxation Relief
Article 36 - Policy Statement on Double Taxation Relief
Relief from double taxation is available under a
Double Taxation Agreement . Provision is also made for unilateral credit relief.Amended (as from 18th June 2014) Article 37 - Relief Under Agreements with Other Countries
(1) WhereQatar has entered intoDouble Taxation Agreements , the provisions of thoseDouble Taxation Agreements shall apply in preference to any similar provisions in these Regulations and theTax Rules .(2) Credit for tax paid under the law of any country other thanQatar is not allowable under Article 38 in the case of any income if any credit for that tax is allowable in respect of that income under aDouble Taxation Agreement made betweenQatar and that country.Amended (as from 18th June 2014) Article 38 - Unilateral Relief
(1) Relief from double taxation shall be given in respect of tax paid under the law of any country other thanQatar on income subject to tax under these Regulations, by allowing that tax as a credit against corporation tax, notwithstanding that noDouble Taxation Agreements are in force, and this relief will be referred to as "unilateral relief".(2) "Tax paid" in Article 38(1) shall only include—(a) income and corporation taxes paid on income in the other country, computed by reference to that income; and(b) withholding taxes paid in respect of income in the other country.(3) Articles 38 to 40 apply only toQFC Entities regarded asResident in Qatar under Article 8 of these Regulations.Amended (as from 18th June 2014) Article 39 - Calculation of Income Subject to Overseas Tax
(1) Where credit for any overseas tax paid is to be given under these Regulations then the income in respect of which the credit is to be given shall include the full amount of the overseas tax paid on that income.(2) Relief for overseas tax paid shall not exceed the tax payable to theQFCA under these Regulations on the income in respect of which that overseas tax has been paid.Article 40 - Election to Treat as an Expense
A
QFC Entity may elect, in writing to theTax Department within 18 months from the end of anAccounting Period , for overseas tax paid in respect of overseas income subject to tax under these Regulations in thatAccounting Period to be treated as a deductible expense instead of being available for unilateral relief under Article 38. Where an election is made under this Article all of the tax paid on any source of overseas income shall be treated as an expense.Part 7: Part 7: Reorganisations and Reconstructions
Article 41 - Policy Statement on Reorganisations and Reconstructions
The
QFC tax regime supports commercially driven reorganisations. This Part provides relief for a number of specified transactions. Relief is also available on a discretionary basis for other transactions carried out as part of a bona fide commercial reorganisation or reconstruction.Article 42 - Intra-Group Transfer of Assets
(1) Where aCompany ("Company A") disposes of an asset to anotherCompany ("Company B") at a time when bothCompanies areQFC Entities and are members of the sameGroup , then Company A and Company B shall be treated for the purposes of these Regulations as if the asset was acquired by Company B for a consideration of such amount as would secure that neither a gain nor a loss would accrue to Company A on the disposal.(2) If within 12 months after the disposal in Article 42(1) Company A and Company B cease to be members of the sameGroup then that disposal will be treated as having taken place atMarket Value , at the date of the disposal.Article 43 - Replacement of Business Assets
(1) Where aQFC Entity disposes of specified business assets (the "old assets") and the consideration for the disposal is used to acquire other specified business assets (the "new assets"), then on making a claim—(a) the consideration for the disposal of the old assets shall be treated as if it were an amount to secure that neither a gain nor a loss would accrue to theQFC Entity ; and(b) the consideration for the acquisition of the new assets shall be reduced by the difference between the actual consideration for the disposal of the old assets and the amount theQFC Entity is treated as receiving under Article 43(1)(a).(2) In this Article a "specified business asset" is an asset meeting all the following conditions—(a) the asset has been used for the purposes of generatingLocal Source income; and(b) it falls within one of the following classes of assets—(i) a building, part of a building or land;(ii) goodwill;(iii) patents, copyrights or any other form of intellectual property.(3) Where the consideration for the disposal is not fully utilised to acquire new assets, the consideration under Article 43(1)(a) shall be increased by the amount not so utilised.(4) Where the old assets have not been used for the purposes of generatingLocal Source income for the whole of their period ofOwnership , or have not been used wholly for such purposes, the consideration under Article 43(1)(a) shall be of such an amount to secure that the gain accruing to theQFC Entity is proportionate to the period during which the old assets were not used for generatingLocal Source income or proportionate to the extent the old assets were not used for generatingLocal Source income, as the case may be.(5) This Article only applies where the acquisition of the new assets takes place within the period beginning 6 months before and ending two years after the disposal of the old asset.Amended (as from 18th June 2014) Article 44 - Reduction in Share Capital
(1) This Article applies where aCompany —(a) extinguishes or reduces the liability on any of its shares in respect of capital not paid up;(b) cancels any paid up capital that is lost or unrepresented by available assets; or(c) redeems or otherwise purchases any of its shares.(2) AnyQFC Entity carrying out, receiving proceeds from or generating a profit and loss account credit in respect of a transaction listed in Article 44(1) shall be exempt from tax under these Regulations on the transaction.Amended (as from 16th June 2020) Article 45 - Incorporation of a Business
(1) This Article applies when—(a) aQFC Entity that is not aCompany (“QFC Entity A”) transfers to aQFC Entity that is either aCompany or anLLP (“QFC Entity B”) a business as a going concern, together with the whole, or substantially the whole of the assets of the business other than cash;(b) the business is transferred wholly in exchange for shares or interests, as applicable, (the “New Shares”) issued by QFC Entity B to QFC Entity A or aPerson Connected to QFC Entity A; and(c) the condition outlined in Article 45(2) is fulfilled.(2) The condition is that QFC Entity A or aPerson Connected to QFC Entity A will, in consequence of the exchange outlined in Article 45(1)(b):(a) where QFC Entity B is aCompany , hold 100% of the shares in QFC Entity B; or(b) where QFC Entity B is an LLP, beneficially own 100% of the assets of, and income earning rights in, theLLP .(3) The consideration for the transfer of assets shall be treated as being of such amount as would secure that neither a gain nor a loss would accrue to QFC Entity A.(4) In the event that—(a) where QFC Entity B is aCompany ,Ownership of more than 50% of the new shares changes; or(b) where QFC Entity B is anLLP ,Ownership of more than 50% of the assets of theLLP orOwnership of more than 50% of the income earning rights in theLLP changes,in each case, within 12 months of the date of transfer of the business mentioned in Article 45(1), that transfer shall be treated as taking place atMarket Value on the date the business was transferred to theCompany or theLLP , as applicable.(5) Tax losses not utilised at the date of transfer by QFC Entity A shall be available to QFC Entity B as though they were losses carried forward under Article 28 at the date of transfer.(6) The consideration for the issuance of New Shares referred to in Article 45(1) shall be deemed to be for a consideration equal to theMarket Value of the assets of the business transferred on the date of such transfer.Amended (as from 18th June 2014) Article 46 - Reorganisations and Reconstructions Carried out for Bona Fide Commercial Reasons
(1) If aQFC Entity carries out a reorganisation or reconstruction not covered by Articles 42 to 45—(a) for bona fide commercial reasons; and(b) if obtaining a tax advantage was not the main object, or one of the main objects, of the transaction or series of transactions, theTax Department shall, on application by theQFC Entity , consider treating the transaction or series of transactions constituting the reorganisation or reconstruction in a tax neutral manner.(2) TheTax Rules may contain provisions regarding the form and manner in which an application under Article 46(1) is to be made (TAX 14).Part 8: Part 8: Transfer Pricing
Article 47 - Policy Statement on Transfer Pricing
This Part provides rules for the treatment for tax purposes of income affected by transactions between
Associated Persons .Article 48 - Basic Rule
(1) This Part applies when—(a) conditions ("the actual conditions") have been made or imposed between any twoAssociated Persons in their commercial or financial relations by means of a transaction or series of transactions; and(b) by reason of the actual conditions being made or imposed instead of the arm's length conditions there is, except for this Article, a reduction in the amount of theChargeable Profits of aQFC Entity , being one of thoseAssociated Persons ("the first taxpayer") for anAccounting Period .(2) The "arm's length conditions" are the conditions that would have been made or imposed if thePersons were notAssociated with each other and the term includes the case where no conditions would have been made or imposed as betweenPersons who were notAssociated with each other.(3) TheChargeable Profits of the first taxpayer shall be computed for tax purposes as if the arm's length conditions had been made or imposed as between the first taxpayer and the otherAssociated Person referred to in Article 48(1), instead of the actual conditions. A computation on that basis is referred to as a computation on the arm's length basis.(4) For the purposes of this Part—(a) references to a reduction in an amount ofChargeable Profits include references to a reduction to nil or to the accrual of a tax loss or an increased loss; and(b) references to an increase inChargeable Profits include references to the reduction in a tax loss whether to a smaller amount or to nil.(5) This Part applies whenever the conditions in question were made or imposed, whether before, on or after these Regulations come into force.Amended (as from 18th June 2014) Article 49 - Loans
(1) This Article applies where the actual conditions imposed between twoAssociated Persons include the making of a loan, and the matters specified in Article 49(2) are relevant to the determination of the arm's length conditions for the purposes of Article 48.(2) Article 48(2) shall be construed as requiring account to be taken of all factors including—(a) the appropriate level or extent of the borrowing person's overall indebtedness;(b) whether the loan would have been made at all if thePersons had not beenAssociated ;(c) the amount which the loan would have been if thePersons had not beenAssociated ; and(d) the rate of interest and other terms which would have been agreed if thePersons had not beenAssociated ,but is subject to the following provisions of this Article.(3) Where—(a) aPerson makes a loan to anAssociated Person ; and(b) it is not part of the firstPerson's business to make loans generally, the fact that it is not part of the firstPerson's business to make loans generally shall be disregarded in construing Article 49(2).(4) Article 48(2) shall be construed as requiring no account to be taken, in the determination of any of the matters mentioned in Article 49(2), of (or any inference capable of being drawn from) any guarantee provided by aPerson with which the borrowing person isAssociated .(5) Any reference to a guarantee includes a reference to a surety and to any other relationship, arrangement, connection or understanding (whether formal or informal) such that thePerson making the loan to the borrowing person has a reasonable expectation that in the event of a default by the borrowing person he will be paid by, or out of the assets of, one or more Persons.(6) For the purposes of this Article, "the borrowing person" means thePerson which received the loan referred to in Article 49(1).Amended (as from 18th June 2014) Article 50 - Guarantees
(1) This Article applies where the actual conditions are made or imposed by means of a series of transactions which include—(a) the receipt of a loan by aPerson which is one of theAssociated Persons ("the borrowing person"); and(b) the provision of a guarantee by aPerson which is the other of thosePersons .(2) Article 48(2) shall be construed as requiring account to be taken of all factors including—(a) whether the guarantee would have been provided at all if thePersons had not beenAssociated ;(b) the amount that would have been guaranteed if thePersons had not beenAssociated ; and(c) the consideration for the guarantee and other terms which would have been agreed if thePersons had not beenAssociated ,but is subject to the following provisions of this Article.(3) Where—(a) aPerson provides a guarantee in respect of anotherAssociated Person ; and(b) it is not part of the firstPerson's business to provide guarantees generally, the fact that it is not part of the firstPerson's business to provide guarantees generally shall be disregarded in construing Article 50(2).(4) Article 48(2) shall be construed as requiring no account to be taken, in the determination of any of the matters mentioned in Article 50(5), of (or any inference capable of being drawn from) any guarantee provided by aPerson with which the borrowing person isAssociated .(5) The matters are—(a) the appropriate level or extent of the borrowing person's overall indebtedness;(b) whether it might be expected that the borrowing person and a particularPerson would have become parties to a transaction involving the receipt of a loan by the borrowing person or the making of a loan, or a loan of a particular amount, to thatPerson ; and(c) the rate of interest and other terms that might be expected to be applicable in any particular case to such a transaction.(6) Article 49(5) also applies for the purposes of this Article.Amended (as from 18th June 2014) Article 51 - Compensating Adjustment Claims
(1) If—(a) in anAccounting Period and by reason of the actual conditions, an amount ofChargeable Profits of that otherPerson Associated with the first taxpayer, in this Part referred to as the "second taxpayer", is increased;(b) that increase inChargeable Profits corresponds to the reduction inChargeable Profits of the first taxpayer referred to in Article 48(1)(b); and(c) a claim under this Article for a compensating adjustment has been made in writing by the second taxpayer to theTax Department ,the second taxpayer'sChargeable Profits shall be computed as if the arm's length conditions had been made or imposed instead of the actual conditions, and the computation must be consistent with the computation made on that basis in the case of the first taxpayer.(2) Article 51(1) shall not apply unless the amount ofChargeable Profits mentioned in Article 51(1)(a) would be taken into account in computing the amount of the second taxpayer'sChargeable Profits for anAccounting Period .(3) For the purposes of Article 51(2) in a case where no tax loss accrues or a smaller loss accrues, as mentioned in Article 48(4)(b), aChargeable Profit shall instead be deemed to have accrued.(4) A claim by the second taxpayer under Article 51(1) shall not be made in relation to anAccounting Period unless—(a) the first taxpayer had made a return on an arm's length basis for theAccounting Period ; or(b) a relevant notice given to the first taxpayer takes into account a determination in accordance with this Part of an amount falling to be brought into account for tax purposes on that basis for thatAccounting Period ; and(c) the claim is made within 3 years of the date on which that return is made or that notice is given, or such longer time as theTax Department may allow.(5) Where—(a) a claim under Article 51(1) is made by the second taxpayer in relation to a return made on the arm's length basis as is mentioned in Article 51(4)(a); and(b) a relevant notice taking account of such a determination as is mentioned in Article 51(4)(b) is subsequently given to the first taxpayer,the second taxpayer shall be entitled, within the period mentioned in Article 51(4)(c), to make any such amendment of the claim as may be appropriate in consequence of the determination contained in that notice.Amended (as from 18th June 2014) Article 52 - Compensating Adjustment for Guarantor
(1) This Article applies in any case where—(a) aPerson ("the borrowing person") has liabilities under the terms of a loan received by thePerson ;(b) those liabilities are to any extent the subject of a guarantee provided by aPerson ("the guarantor person"); and(c) in computing theChargeable Profits or tax losses of the borrowing person for the purposes of these Regulations, the amounts to be deducted in respect of interest or other amounts payable under the terms of the loan fall to be reduced (whether or not to nil) under Article 48(3) by virtue of Article 49.(2) On the making of a claim in writing to theTax Department by the guarantor person in any such case, the guarantor person shall, to the extent of that reduction, be treated for all purposes of these Regulations as if it (and not the borrowing person)—(a) had received the loan;(b) owed the liabilities under the terms of the loan; and(c) had paid any interest or other amounts paid under the terms of the loan by the borrowing person.(3) Where the borrowing person's liabilities under the terms of the loan are the subject of two or more guarantees (whether or not provided by the same Person) the total of the amounts brought into account by the guarantor persons by virtue of Article 52(2) must not exceed the total amount of the reductions that fall within Article 52(1)(c).(4) Articles 51(4) and (5) shall apply in relation to a claim under Article 52(2) as they apply in relation to a claim under Article 51(1) by the second taxpayer but taking references in Article 48—(a) to the first taxpayer, as references to the borrowing person; and(b) to the second taxpayer, as references to the guarantor person.(5) Article 49(5) also applies for the purposes of this Article.Amended (as from 18th June 2014) Article 53 - Balancing Payments
(1) This Article applies where—(a) the circumstances are as described in Articles 51(1)(a) and (b); and(b) one or more payments (the "balancing payments") are made to the first taxpayer by the second taxpayer; and(c) the sole or main reason for making those payments is that Article 48(3) applies.(2) To the extent that the balancing payments do not in aggregate exceed the amount of the available compensating adjustment, those payments shall not be taken into account in computing theChargeable Profits or tax losses of either the first taxpayer or the second taxpayer.(3) In this Article the "available compensating adjustment" means the difference between—(a) theChargeable Profits or tax losses of the second taxpayer computed on the basis of the actual conditions; and(b) theChargeable Profits or tax losses of the second taxpayer as they fall or would fall to be computed on a claim under Article 51(1),for this purpose taking the amounts in subparagraphs (a) and (b) above as a positive amount if it is an amount ofChargeable Profit and as a negative amount if it is an amount of tax loss.Amended (as from 18th June 2014) Article 54 - Balancing Payments by Guarantor
(1) This Article applies where—(a) the circumstances are as described in Article 52(1);(b) one or more payments (the "balancing payments") are made by the guarantor person to the borrowing person; and(c) the sole or main reason for making those payments is that Article 48 applies by virtue of Article 50 or that Article 52 applies.(2) To the extent that the balancing payments by all the guarantor persons do not in aggregate exceed the total amount of the reductions as mentioned in Article 52(3), those payments shall not be taken into account in computing theChargeable Profits or tax losses of the guarantor person or persons or the borrowing person.Article 55 - Effect on Double Taxation Relief
Where a claim under Article 51(1) or an amended claim under Article 51(5) is allowed and the claimant has been or may be given credit for overseas tax under a
Double Taxation Agreement or under Article 38, in computing the amount of that credit—(a) the overseas tax to be taken into account as having been paid or as being payable by the claimant shall exclude any amount of overseas tax which would not have been paid or payable if the computation of the income to which the claim or amended claim relates, had, so far as it includes income to which the claim relates, been made on the arm's length basis; and(b) the amount of the income to be taken into account as having been received by the claimant and in respect of which the claimant is or may be given credit for overseas tax shall be determined, so far as it includes income to which the claim or amended claim relates, on the arm's length basis.Amended (as from 18th June 2014) Article 56 - Associated Persons
For the purposes of this Part,
Persons areAssociated with each other if oneControls the other, either directly or indirectly, or both areControlled by the samePerson orPersons .Article 57 - Control
(1) For the purposes of these Regulations, and subject to Article 57(2), "Control " in relation to aCompany means the power of aPerson to secure—(a) by means of the holding of shares or the possession of voting rights in or in relation to thatCompany ; or(b) by virtue of any powers conferred by the articles of association or other document regulating that or any otherCompany ,that the affairs of the firstCompany are conducted in accordance with the wishes of thatPerson , and in relation to aPartnership , means the right of aPerson to a share of more than one-half of the assets, or of more than one-half of the income of thatPartnership .(2) For the purposes of these Regulations, aPerson who exercisesControl , or is able to exercise or is entitled to acquire, direct or indirect,Control over the affairs of aCompany or aPartnership shall be taken to haveControl of thatCompany or thatPartnership , as the case may be.(3) Without prejudice to the generality of Articles 57(1) and (2), aPerson ("the potential controller") shall be taken to have indirectControl of aCompany or aPartnership at a particular time if he would be taken to be directlyControlling thatCompany or thatPartnership if the rights and powers attributed to him included the rights and powers ofPersons with whom the potential controller isConnected .(4) For the purposes of this Article twoPersons areConnected with each other if—(a) one of them is an individual and the other is his spouse, a relative of his or of his spouse, or the spouse of such a relative;(b) one ("the firstPerson ") is in partnership with the other ("the secondPerson ") or is the spouse or relative of the secondPerson ; or(c) one of them is the trustee of aSettlement and the other is—(i) aPerson who in relation to thatSettlement is aSettlor ; or(ii) aPerson who is connected with aPerson falling within subparagraph (i) above.(5) For the purposes of Article 57(4) "relative" means brother, sister, ancestor or lineal descendant including a step-child.Amended (as from 18th June 2014) Article 58 - Transfer Pricing Appeals
When the question in dispute on any appeal within Article 135 is or involves a determination of whether this Part has effect as respect any conditions made or imposed between any two
Persons and the question relates to any conditions made or imposed between twoPersons each of whom is within the charge to tax under these Regulations in respect of profits arising from the relevant activities, then—(a) each of thePersons as between whom the actual conditions were made or imposed shall be entitled to appear and be heard byThe Regulatory Tribunal , or to make representations to them in writing;(b)The Regulatory Tribunal shall determine that question separately from any other questions in those proceedings; and(c) their determination on that question shall have effect as if made on an appeal to which each of thosePersons was a party.Amended (as from 18th June 2014) Article 59 - Supplementary Provisions
(1) For the purposes of this Part—(a) "transaction" includes arrangements, understandings and mutual practices (whether or not they are, or are intended to be, legally enforceable);(b) "a series of transactions" includes references to a number of transactions each entered into (whether or not one after the other) in pursuance of, or in relation to, the same arrangement;(c) a series of transactions shall not be prevented by reason only of one or more of the matters mentioned in Article 59(1)(d) from being regarded as a series of transactions by means of which conditions have been made or imposed between any twoPersons ;(d) the matters are—(i) that there is no transaction to which both thosePersons are parties;(ii) that the parties to any arrangement in pursuance of which the transactions in the series are entered into do not include one or both of thosePersons ; and(iii)that there is one or more of the transactions in the series to which neither of those is a party.(2) In this Article, "arrangement" means any scheme or arrangement of any kind (whether or not it is, or is intended to be, legally enforceable).(3) For the purposes of this Part, where conditions are made or imposed betweenAssociated Persons in their commercial or financial relations by means of a transaction or series of transactions—(a) it shall be assumed, unless the contrary is shown to the satisfaction of theTax Department , that different conditions or no conditions would have been imposed if thePersons were notAssociated ; and(b) where a claim is made under Article 51(1), it shall be for the claimant to show that the claim satisfies that paragraph.(4) Any adjustment required to be made by virtue of this Part may be made by way of discharge or repayment of tax by modification of any assessment or otherwise.(5) In this Part "relevant activities" in relation to anyPerson who is one of thePersons as between whom any conditions have been made or imposed, means such of his activities as—(a) comprise the activities in the course of which, or with respect to which, those conditions are made or imposed; and(b) are not activities carried on either separately from those activities or for the purposes of a different part of thatPerson's business.(6) In this Part "relevant notice" means—(a) a closure notice under Article 124 in relation to an enquiry into a return filed under Article 109, or into a return amended under Article 116, or into aPartnership return;(b) a notice of a discovery assessment under Article 128(1); or(c) a notice of a discovery determination under Article 128(2).Amended (as from 18th June 2014) Part 9: Part 9: General Partnerships and Limited Partnerships
Article 60 - Policy Statement on General Partnerships and Limited Partnerships
A
GP & LP Partnership is liable to tax under these Regulations as if it were a separate legal entity, but the tax liability is attributed to the individualPartners . There is a restriction on the deduction allowable forPartners' Remuneration .Amended (as from 18th June 2014) Article 61 - General Scheme for General Partnerships and Limited Partnerships
This Part contains provisions relating to:
(a)General Partnerships andLimited Partnerships incorporated or established under thePartnership Regulations 2007 ; and(b)Non-QFC Partnerships that have registered a branch under Part 8 of thePartnership Regulations 2007 , each referred to in this Part as aGP & LP Partnership .Amended (as from 18th June 2014) Article 62 - Payment of Tax and Computation of Chargeable Profits of General Partnerships and Limited Partnerships
(1) Tax charged under these Regulations on aGP & LP Partnership for anAccounting Period shall be attributed to thePartners in accordance with their profit share for thatAccounting Period .(2) If any tax payable by aGP & LP Partnership remains unpaid 6 months after the due and payable date theTax Department may collect such unpaid tax from thePartners , based on their profit share.(3) Any tax to which Article 62(2) applies shall become a joint liability of theGP & LP Partnership and each of thePartners . The extent to which a particularPartner is liable under this Article is restricted to a fraction of the total unpaid tax, that fraction being the same as his share ofGP & LP Partnership profits for theAccounting Period in question. Where the profit share of aPartner is unknown this Article shall apply as if thePartners shared profits equally.(4) In arriving at theChargeable Profits of aGP & LP Partnership for anyAccounting Period , aGP & LP Partnership is entitled to a deduction in respect of anyRemuneration paid toPartners that is considered just and reasonable by theTax Department up to a maximum of 50% of theChargeable Profits of theGP & LP Partnership , as the case may be, for thatAccounting Period as calculated prior to the deduction ofPartners' Remuneration .(5) References to a “Partner ” in Article 62(4) shall also includeDisguised Partners .Amended (as from 18th June 2014) Part 10: Part 10: Limited Liability Partnerships
Article 63 - Policy Statement on LLPS
An
LLP is liable to tax under these Regulations as if it were a separate legal entity. There is a restriction on the deduction allowable forMembers' Remuneration .Amended (as from 18th July 2019) Article 64 - General Scheme for LLPS
This Part contains provisions relating to:
(a) Limited liability partnerships incorporated or established under theLimited Liability Partnership Regulations 2005 ; and(b)Non-QFC Limited Liability Partnerships that have registered under Part 10 of theLimited Liability Partnership Regulations 2005 ,each referred to as an
LLP .Amended (as from 18th July 2019) Article 65 - Computation of Chargeable Profits of LLPS
(1) In arriving at theChargeable Profits of anLLP for anyAccounting Period , anLLP is entitled to a deduction in respect of any Remuneration paid to Members of theLLP that is considered just and reasonable by theTax Department up to a maximum of 50% of theChargeable Profits of theLLP for thatAccounting Period , as calculated prior to the deduction ofMembers' Remuneration .(2) A Member of anLLP is:(a) in respect of a limited liability partnership established or registered under theLimited Liability Partnership Regulations 2005 , as defined by Article 11 of theLimited Liability Partnership Regulations 2005 ; or(b) in respect of aNon-QFC Limited Liability Partnership , a person who is considered a member of theNon-QFC Limited Liability Partnership under the law of incorporation or establishment of theNon-QFC Limited Liability Partnership .(3) References to a “Member” in Article 65(1) shall also includeDisguised Members .Amended (as from 18th July 2019) Part 11: Part 11: Islamic Finance
Article 66 - Policy Statement on Islamic Finance
The
QFC supports the development of Islamic financial services withinQatar through a tax regime which ensures that the tax treatment ofIslamic Financial Institutions andIslamic Finance Transactions is no more burdensome than that of conventional finance alternatives.Amended (as from 18th June 2014) Article 67 - Taxation of Islamic Financial Institutions
(1) Where any of the conditions of Article 67(3) are met anIslamic Financial Institution may make a claim, in respect of anyAccounting Period , for a tax adjustment.(2) In this Article a "tax adjustment" means a decrease in theChargeable Profits , or an increase in the tax loss, of anIslamic Financial Institution , and such tax adjustment can create a tax loss.(3) The conditions required for a tax adjustment are—(a) the profit declared in accounts prepared under standards issued by the Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) is materially higher, or in the case of a loss the loss is lower, than would have been declared underIFRS ; or(b) theChargeable Profit , or tax loss, in respect of anIslamic Finance Transaction , or series of transactions, is materially higher or, in the case of a tax loss, lower, than would have arisen from an equivalent transaction, or series of transactions, structured as aConventional Finance Transaction .(4) For the purposes of Article 67(3) "materially" means more than 5%.(5) The amount of a tax adjustment under this Article shall be such as is required to adjust theChargeable Profits or, as the case may be, the tax loss for theAccounting Period of claim to the figure that would have arisen had the profit or loss been declared underIFRS or the transaction, or series of transactions, had been structured as aConventional Finance Transaction .(6) Where the whole or part of a tax adjustment arises from the timing of the recognition of income or expenditure, theChargeable Profits or tax losses of subsequentAccounting Periods shall be adjusted to take into account the reversal of any such timing difference.Amended (as from 18th June 2014) Article 68 - Funding Costs of Islamic Financial Institutions
(1) In computingChargeable Profits or tax losses for anAccounting Period , anIslamic Financial Institution is entitled to a deduction for the equivalent funding amount.(2) The "equivalent funding amount" for anAccounting Period is the deduction for funding costs that would be allowable under Part 4 for thatAccounting Period if theIslamic Financial Institution were aConventional Financial Institution funding its operations usingConventional Finance Transactions , less the actual funding amount.(3) The "actual funding amount" for anAccounting Period is the deduction for funding costs actually allowable for thatAccounting Period under Part 4.(4) "Funding costs" means the cost of servicing debt obligations, excluding capital repayments.(5) The transfer pricing provisions of Part 8 apply to the calculation of the equivalent funding amount in Article 68(2).Amended (as from 18th June 2014) Article 69 - Taxation of Islamic Finance Transactions
(1) This Article applies to anyQFC Entity entering into anIslamic Finance Transaction with anIslamic Financial Institution .(2) If on making a claim aQFC Entity can show, to the reasonable satisfaction of theTax Department , that by entering into anIslamic Finance Transaction it has either—(a) paid an amount of tax earlier; or(b) over the period of the transaction paid a greater amount of tax, than would have been the case if the transaction had been entered into as aConventional Finance Transaction , then an adjustment may be made to the self-assessment of theQFC Entity for theAccounting Periods covering the period of the transaction.(3) An adjustment under this Article shall be such as is required to put theQFC Entity in the same position, with respect to its liability to tax, that would have been the case if theIslamic Finance Transaction had been entered into as aConventional Finance Transaction .Amended (as from 18th June 2014) Article 70 - Islamic Finance and Special Purpose Company
An
LLC , aQFC Partnership orOther Permitted Form of QFC Entity incorporated inQatar and established solely for the purposes of supporting or facilitating anIslamic Finance Transaction may elect for special exempt status in accordance with Part 14.Amended (as from 18th June 2014) Part 12: Part 12: Participation Exemptions
Article 71 - Policy Statement on Participation Exemptions
Capital gains and dividends in respect of qualifying shareholdings are exempt from tax under these Regulations.
Article 72 - Participation Exemption on Investment in Shares
(1) Subject to Article 73, the gain arising on the disposal of a qualifying shareholding shall be exempt from tax, and any loss arising on the disposal shall not be available for relief under Part 5.(2) AQFC Entity holds a "qualifying shareholding" in aCompany if it meets the following conditions—(a) it holds an interest of at least 10% of theOrdinary Share Capital of theCompany ;(b) it, or anotherCompany orLLP in the sameGroup , has held the interest mentioned in Article 72(2)(a) for a continuous period of at least 6 months immediately preceding the date of disposal; and(c) the shares in theCompany have not been held wholly or mainly with a view to resale.Amended (as from 18th June 2014) Article 73 - Interaction between Article 42 and Article 72
(1) The exemption conferred by Article 72 shall not apply to a disposal that by virtue of Article 42(1) is deemed to be for a consideration of such amount as would secure that neither a gain nor a loss would accrue to thePerson making the disposal.Amended (as from 18th June 2014) Part 13: Part 13: Insurance Companies
Article 74 - Policy Statement on Insurance Companies
Insurers are liable to tax under these Regulations on the basis of theirAccounting Profits , determined by accounts prepared in accordance withGAAP (as defined by Article 15(2)) and the laws of theQFC . AQFC Captive Insurer or aReinsurer may elect for itsChargeable Profits to be charged to tax at theConcessionary Rate in accordance with Part 15.Amended (as from 18th June 2014) Article 75 - Taxation of Insurers
(1) This Part applies to allQFC Entities licensed to carry on business as anInsurer .(2) Subject to the provisions of this Part, anInsurer is liable to tax on itsAccounting Profit as defined by Article 15, and as adjusted by these Regulations.(3) AnInsurer is taxable on investment income generated from itsLicensed Activity .(4) The funded basis of accounting is not acceptable for the purpose of these Regulations.Article 76 - Provisions
(1) In arriving at itsChargeable Profits , anInsurer shall be entitled to a deduction for any specific provisions established in respect of a present obligation arising from a past event, provided that the past event occurred after the commencement date of these Regulations.(2) In arriving at theChargeable Profits of anInsurer , no deduction may be allowed in respect of provisions of a general nature or for equalisation or catastrophe reserves established in respect of future events.Article 77 - Takaful
(1) This Article applies to anyInsurer that—(a) is anIslamic Financial Institution which conductsIslamic Financial Business which isInsurance Business ; or(b) is anAuthorised Firm which conductsInsurance Business by means of anIslamic Window and complies with Chapter 8 of the Islamic Finance Rules 2005.(2) AnInsurer meeting the requirements of Article 77(1) shall be referred to as a Takaful Entity.(3) A Takaful Entity shall set off the net surplus or deficit attributable to Takaful Business for anAccounting Period againstChargeable Profits of the sameAccounting Period .(4) Takaful Business for the purposes of this Article shall mean theInsurance Business referred to in Article 77(1)(a) or Article 77(1)(b) as applicable, and carried on by the relevantIslamic Financial Institution orAuthorised Firm referred to in Article 77(1)(a) or Article 77(1)(b), as applicable.Amended (as from 18th June 2014) Article 78 - QFC Captive Insurers
(1) AQFC Entity that is aQFC Captive Insurer may elect for itsChargeable Profits to be charged to tax at theConcessionary Rate in accordance with Part 15.Amended (as from 18th June 2014) Article 79 - Reinsurers
A
Reinsurer may elect for itsChargeable Profits arising from itsReinsurance Business to be charged to tax at theConcessionary Rate in accordance with Part 15.Amended (as from 18th June 2014) Article 80 - [Deleted]
Deleted (as from 18th June 2014) Article 81 - [Deleted]
Deleted (as from 18th June 2014) Article 80 - Cessation of Business
(1) AnInsurer , ceasing to effectContracts of Insurance , will be treated as being in a period of run-off until all liabilities to policyholders relating to theInsurance Business have been met.(2) During the period of run-off, anInsurer will be entitled to all reliefs and allowances provided for within these Regulations, including but not limited to the carry forward of tax losses from previousAccounting Periods .Amended (as from 18th June 2014) Part 14: Part 14: Special Exemptions
Article 81 - Policy Statement on Special Exemptions
In support of financing and investment activities carried on by
QFC Entities these Regulations provide for the establishment of tax exempt vehicles.Amended (as from 18th June 2014) Article 82 - Election for Special Exempt Status
(1) AQFC Entity which is:(a) one of the exempt vehicles listed in Article 82(3); or(b) listed on the Qatar Stock Exchange or another approved public market in Qatarmay elect for special exempt status.(2) Subject to Article 86A, aQFC Entity on electing for special exempt status shall be exempt from tax under these Regulations for theAccounting Period to which the election relates.(3) For the purposes of this Part exempt vehicles are—(a) a registered fund as defined in Article 83;(b) a special investment fund as defined in Article 84;(c) a special funding company as defined in Article 85;(d) an alternative risk vehicle as defined in Article 86.(4) Subject to Article 82(5),Distributions received from a registered fund or a special investment fund which has elected for special exempt status are exempt from tax under these Regulations.(5) Payments in respect of management fees shall not be exempt from tax under these Regulations pursuant to Article 82(4).(6) An election under this Article shall be made in writing to theTax Department within 6 months from the end of theAccounting Period for which special exempt status is to apply.(7) An election for special exempt status will be allowed only if the conditions provided for in Article 86A are met.(8) Part 5 does not apply to anyQFC Entity that is exempt from tax under this Article.(9) For the purposes of Article 82(5), management fees are amounts charged for the management of a registered fund's or a special investment fund's business of making investments, excluding such fees which are paid by way of aDistribution and paid in priority to otherDistributions and performance fees.Amended (as from 21th December 2020) Article 83 - Registered Fund
(1) ARegistered Fund is aQFC Scheme or aPrivate Placement Scheme .(2) AQFC Scheme has the meaning given by Rule 1.2.6 of the Collective Investment Scheme Rules 2010.(3) APrivate Placement Scheme has the meaning given by Rule 1.1.4 of the Private Placement Schemes Rules 2010.Amended (as from 18th June 2014) Article 84 - Special Investment Fund
(1) A special investment fund is anyCompany ,Partnership , trust orOther Permitted Form of QFC Entity which—(a) is not aRegistered Fund ;(b) is managed by anApproved QFC Entity ; and(c) is established solely for one of the permitted activities listed in Article 84(2).(2) The permitted activities are—(a) private equity investments;(b) venture capital investments;(c) making investments, including investments in property;(d) making investments on behalf of aSingle Family .(3) AnApproved QFC Entity is aPerson permitted to manage the special investment fund under an approval, an authority or a licence (however described) given by theQFC Authority under theQFC Law .Amended (as from 18th June 2014) Article 85 - Special Funding Company
(1) A special funding company is aCompany carrying on one or more of the activities listed below and no other activity, apart from any activity incidental to such activities—(a) acquiring, holding and managing financial assets forming the whole or part of the security for a funding arrangement;(b) acting as a guarantor in respect of loan relationships, derivative contracts, finance leases or other liabilities of otherCompanies where the whole, or substantially the whole, of theCompany's rights in respect of the guarantee form the whole or part of the security for the funding arrangement;(c) acquiring, holding and managing financial assets forming the whole or part of the security for a funding arrangement entered into by another special funding company;(d) entering into and being a party to a creditor relationship with another special funding company;(e) in relation to aSpecial Purpose Company , any of the activities listed in Article 9.1(a) to (d) of theSpecial Company Regulations ;(f) in relation to aHolding Company , any of the activities listed in Article 20.1(a) to (f) of theSpecial Company Regulations .(2) A "funding arrangement" is any arrangement for the raising of funds, or the creation of any form of debt instrument.Amended (as from 18th June 2014) Article 86 - Article 86 - Alternative Risk Vehicles
(1) An alternative risk vehicle is aQFC Entity established solely for the purposes of managing risk, but which is not aQFC Captive Insurer .(2) To qualify as an alternative risk vehicle, 75% of the risk management activities must relate to members of the sameGroup to which the alternative risk vehicle belongs.Amended (as from 18th June 2014) Article 86A – Conditions for the Special Exempt Status
(1) AQFC Entity , other than a vehicle referred to in Articles 82(3)(a) or 82(3)(b), that makes an election for the special exempt status under Articles 82(1) of these Regulations in relation to anAccounting Period must ensure that the following conditions are met during thatAccounting Period :(a) TheQFC Entity has in Qatar an adequate number of full-time employees with adequate qualifications to perform their professional responsibilities;(b) TheQFC Entity incurs an adequate amount of operating expenditures to undertake its activities; and(c) TheQFC Entity ensures that its Core Income Generating Activities are carried out in Qatar.(2) TheTax Department shall monitor QFC Entities that have made an election under Article 82 of these Regulations to ensure that the conditions provided for in Article 86(A)(1) are met.(3) An election under Article 82(1) of these Regulations will not be valid if the conditions under Article 86A(1) are not met or theTax Department consider that the sole or main purpose of theQFC Entity is the avoidance of tax under these Regulations.Part 15: Concessionary Rate
Article 87 - Policy Statement on the Concessionary Rate
These Regulations provide for a
Concessionary Rate to apply to theChargeable Profits of aQFC Entity in certain circumstances.Inserted (as from 18th June 2014) Article 88 - Election for the Application of the Concessionary Rate
(1) This Part applies to aQFC Entity that is—(a) aQatari Owned QFC Entity ;(b) aQFC Captive Insurer ;(c) aReinsurer ; or(d) anInvestment Manager .(2) Subject to Article 88(8), aQFC Entity that is aQatari Owned QFC Entity or aQFC Captive Insurer may elect for itsChargeable Profits to be charged to tax at theConcessionary Rate .(3) Subject to Article 88(8), aQFC Entity that is aReinsurer may elect for itsChargeable Profits arising from itsReinsurance Business to be charged to tax at theConcessionary Rate and for this purpose income of aReinsurance Business shall include investment income related to thatReinsurance Business .(4) Subject to Article 88(6) and Article 88(8), aQFC Entity that is anInvestment Manager may elect for itsChargeable Profits arising from carrying onQualifying Investment Activities to be charged to tax at theConcessionary Rate .(5)Qualifying Investment Activity means:(a) managing investments as defined in the QFC Financial Services Regulations Schedule 3, Part 2;(b) operating a collective investment fund as defined in the QFC Financial Services Regulations Schedule 3, Part 2;(c) operating a Special Investment Fund; or(d) managing a Special Investment Fund;(6) An election by anInvestment Manager under this Article shall only be valid for anAccounting Period if theInvestment Manager meets all the following requirements in thatAccounting Period :(a) TheInvestment Manager is duly authorized to carry on theQualifying Investment Activities ;(b) TheInvestment Manager employs on a full-time basis an adequate number of qualified investment professionals that are resident inQatar each earning a total monthly salary (including fringe benefits) of at least QAR 15,000 per month, provided that this number shall not be less than three;(c) The value of assets under management of theInvestment Manager is at least QAR 150 million;(d) TheInvestment Manager incurs an adequate amount of operating expenses, which shall not be less than QAR 1,000,000 perAccounting Period ; and(e) TheInvestment Manager's accounts are audited and reported on by an external auditor.(7) An election under this Article shall be made in writing to theTax Department within 6 months from the end of the firstAccounting Period to which the election is to apply and once made will remain in force in respect of the three subsequentAccounting Periods .(8) An election under this Article shall only be valid if theQFC Entity has paid the Concessionary Rate Charge to the Tax Department in accordance with Article 91.(9) TheTax Department shall monitor QFC Entities that made an election under this Article to ensure that theCore Income Generating Activities are carried out in Qatar.(10) An election under this Article will not be valid if theCore Income Generating Activities are not carried out inQatar or theTax Department consider that the sole or main purpose of theQFC Entity is the avoidance of tax under these Regulations.Amended (as from 18th July 2019) Article 89 - Qatari Owned QFC Entity
(1) AQatari Owned QFC Entity is anLLC , which throughout theAccounting Periods to which the election referred to in Article 89 relates, fulfils the following conditions—(a) at least 90% of theOrdinary Share Capital of theLLC is beneficially owned, directly or indirectly, byPersons who areQatari Nationals ;(b)Persons who areQatari Nationals are beneficially entitled to at least 90% of any profits of theLLC available forDistribution to equity holders of theLLC ;(c)Persons who areQatari Nationals are beneficially entitled to at least 90% of any assets of theLLC available to equity holders on a winding up of theLLC ; and(d) it is not anAuthorised Firm .Amended (as from 12th June 2017). Article 90 - Concessionary Rate
(1) TheConcessionary Rate is 0% and where aQFC Entity is taxed at this rate, Part 5 does not apply.Inserted (as from 18th June 2014) Article 91 - Concessionary Rate Charge
(1) TheConcessionary Rate Charge is—(a) in respect of aQFC Entity which, at the relevant time, has issued share capital of an amount ofQR 1,500,000 or less,QR 10,000; or(b) in respect of aQFC Entity which, at the relevant time, has issued share capital of an amount aboveQR 1,500,000,QR 20,000.(2) “Relevant time” in Article 91(1) shall mean the last day of the firstAccounting Period to which the election referred to in Article 88 is to apply.(3) TheConcessionary Rate Charge is payable on the day following the expiry of 6 months from the end of the firstAccounting Period to which the election referred to in Article 88 is to apply.Inserted (as from 18th June 2014) Article 92 - Apportionment of Chargeable Profits
(1) Where theChargeable Profits of aQFC Entity are liable to tax under these Regulations in part at the standard rate and in part at theConcessionary Rate , those profits shall be apportioned on a basis which appears to theTax Department to be just and reasonable.Inserted (as from 18th June 2014) Part 16: Credit for Tax Losses
Article 93 - Policy Statement on Credit for Tax Losses
Where the conditions of this Part are fulfilled, a
QFC Entity which is anLLC may be entitled to a reimbursement in respect of certain tax losses.Inserted (as from 18th June 2014) Article 94 - Credit for Tax Losses
(1) Subject to the provisions of this Part, including Article 97, aQFC Entity is entitled to make a claim under Article 96 for payment of a tax credit in respect of aReimbursable Tax Loss for aReimbursable Accounting Period if it meets each of conditions A to E set out in this Article throughout the relevantReimbursable Accounting Period .(2) The amount of the tax credit in respect of aReimbursable Tax Loss to which aQFC Entity is entitled to make a claim is determined in accordance with Article 95 and Article 96.(3) Condition A is that theQFC Entity is anLLC .(4) Condition B is that theQFC Entity carries on aLicensed Activity .(5) Condition C is that theQFC Entity has at least 3 full-time employees.(7) Condition E is that theQFC Entity has not elected for special exempt status in respect of theReimbursable Accounting Period or for itsChargeable Profits to be charged to tax at theConcessionary Rate .Inserted (as from 18th June 2014) Article 95 - Reimbursable Tax Losses
(1) AReimbursable Tax Loss is a tax loss calculated in accordance with Article 27 and as adjusted by this Article.(2) In computing aReimbursable Tax Loss of aQFC Entity , no deduction shall be available in respect of—a) expenses which are not shown to the satisfaction of theTax Department to have been incurred in theState ;(b) depreciation of tangible fixed assets;(c) amortisation of intangible fixed assets;(d) interest incurred on indebtedness; and(e) anyDistribution .Inserted (as from 18th June 2014) Article 96 - Payment of Reimbursable Tax Losses
(1) For aQFC Entity to receive a payment of a tax credit in respect of aReimbursable Tax Loss for aReimbursable Accounting Period , it must make a claim in writing to theTax Department within 6 months from the end of theReimbursable Accounting Period to which theReimbursable Tax Loss relates. The claim must specify theReimbursable Accounting Period in respect of which it is made.(2) The amount of the tax credit to which aQFC Entity is entitled in respect of aReimbursable Tax Loss for aReimbursable Accounting Period is the amount stipulated in theTax Rules (Tax 15).(3) If theTax Department determine that aQFC Entity is entitled to a payment of a tax credit under this Part, it shall pay the amount of such tax credit to theQFC Entity within 6 months from the date a return is filed by thatQFC Entity for the relevantReimbursable Accounting Period under Article 109.(4) A payment of a tax credit under this Part shall not be taken into account in computing theChargeable Profits of aQFC Entity .(5) A tax credit due and payable under this Part, which is paid after the (5) date specified in Article 96(3), shall not carry any additional charge or compensation.Inserted (as from 18th June 2014) Article 97 - Requirement for QFC Entity to be a Going Concern
(1) AQFC Entity may only make a claim under Article 96 at a time when it is a going concern.(2) If aQFC Entity ceases to be a going concern after making a claim under Article 96, but before payment of the tax credit by theTax Department , it is treated as if it had not made the claim.(3) For the purposes of Article 97(1) and Article 97(2), and subject to Article 97(4), aQFC Entity is a going concern if—(a) its latest accounts prepared in accordance withGAAP and the laws of theQFC were prepared on a going concern basis;(b) nothing in those accounts indicates that they were only prepared on a going concern basis because of an expectation that theQFC Entity would receive a tax credit in respect ofReimbursable Tax Losses under this Part; and(c) it is actively seeking business.(4) AQFC Entity is not a going concern at any time if it is in administration or liquidation.(5) For the purposes of this Article, aQFC Entity is in administration if—(a) it is in administration under the Insolvency Regulations 2005, or(b) a corresponding situation under the law of a country or territory outside theState exists in relation to theQFC Entity .(6) For the purposes of this Article aQFC Entity is in liquidation if—(a) it is in liquidation within the meaning of the Insolvency Regulations 2005, or(b) a corresponding situation under the law of a country or territory outside theState exists in relation to theQFC Entity .(7) For the purposes of Article 97(3), accounts prepared in accordance withGAAP has the same meaning given by Article 15(2).Inserted (as from 18th June 2014) Article 98 - Restriction on Carry Forward of Tax Losses and Group Relief where a Tax
(1) This Article applies if aQFC Entity claims a tax credit under this Part.(2) For the purposes of Article 32, aQFC Entity's tax loss for anAccounting Period , which may be set off against anyChargeable Profits of a secondQFC Entity by way ofGroup Relief , is to be treated as reduced by the amount of theReimbursable Tax Loss for thatAccounting Period in respect of which theQFC Entity has received payment of a tax credit under this Part.(3) For the purposes of Article 28, aQFC Entity's tax loss for anAccounting Period , which shall be set off against anyChargeable Profits generated by thatQFC Entity in succeedingAccounting Periods , is to be treated as reduced by the amount of theReimbursable Tax Loss for thatAccounting Period in respect of which theQFC Entity has received payment of a tax credit under this Part.Inserted (as from 18th June 2014) Article 99 - Artificial Arrangements
(1) To the extent that theTax Department consider that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it is to be disregarded for the purpose of determining aReimbursable Tax Loss to which aQFC Entity is entitled to make a claim for payment of a tax credit under this Part.(2) Arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable aQFC Entity to obtain:(a) a tax credit under this Part to which it would not otherwise be entitled; or(b) a tax credit under this Part to a greater amount than that to which it would otherwise be entitled.(3) In this Article “arrangements” include any action, activity, scheme, agreement or understanding.Inserted (as from 18th June 2014) Article 100 – Restriction to Elect for Special Exempt Status or for the Concessionary
(1) If aQFC Entity has received payment of a tax credit in respect of aReimbursable Tax Loss under this Part, in the three subsequentAccounting Periods following theReimbursable Accounting Period in respect of which theReimbursable Tax Loss was claimed it shall not be entitled to:(a) elect for special exempt status; or(b) elect for itsChargeable Profits to be charged to tax at theConcessionary Rate .Inserted (as from 18th June 2014) Part 17: Part 17: Administration
Amended (as from 18th June 2014) Article 101 - Establishment of the Tax Department
(1) ATax Department shall be established by theQFC Authority pursuant to Article 6 of theQFC Law.(2) TheTax Department shall administer these Regulations and all aspects ofQFC corporation tax.(3) TheTax Department shall be managed by theDirector of Tax who shall determine its procedure and management.(4) TheTax Department shall be subject to the supervision of theQFC Authority which shall have the power and function to—(a) ensure that theTax Department exercises its statutory powers and performs its statutory functions;(b) review the performance of theTax Department and the use of its resources; and(c) give theTax Department written directions as to the furtherance of any of its objectives or the performance of its functions.(5) TheTax Department shall have the following functions, among others, as set forth in these Regulations—(a) to investigate any contravention of, and to enforce, these Regulations and theTax Rules ;(b) to maintain relations with allState authorities involved in matters addressed in these Regulations, to coordinate with such authorities in the implementation of these Regulations and any rules, policies or orders issued thereunder, to provide such authorities with any documents or materials to which they have a right under these Regulations and any applicable laws, rules or regulations of theState and to represent theQFC in dealings with such authorities; and(c) all other functions provided for in these Regulations and theTax Rules considered by it to be necessary, desirable or appropriate to achieve, further or assist in relation to any of the above.(6) TheTax Department may, at any time, of their own accord or on request from aQFC Entity , issue a concessionary statement of practice setting out that they will treat Persons as if they were entitled to—(a) a reduction in a liability to tax;(b) or any other concession relating to tax, to which they are not, or may not be, entitled in accordance with these Regulations.(7) A concessionary statement of practice as described in Article 101(6) is binding on theTax Department until it is revoked by theTax Department .(8) TheTax Department shall make concessionary statements of practice available to the public by such medium as they consider appropriate.Amended (as from 18th June 2014) Article 102 - Power to Delegate
(1) TheDirector of Tax may delegate to anyOfficer of the Tax Department any duties, powers and functions conferred or imposed on theDirector of Tax under these Regulations except—(a) the power of delegation conferred by this Article; and(b) the power of authorisation under Article 138.(2) A delegation under Article 102(1) shall be in writing and shall specify the duties, powers and functions delegated to anOfficer of the Tax Department . Any modification, extension or revocation of a delegation shall also be in writing and shall specify the modification, extension or revocation being made.(3) Where theDirector of Tax delegates to anOfficer of the Tax Department any duty, power or function under this Article, that Officer shall remain under the supervision of theDirector of Tax throughout the entire period during which the delegation is in effect.Amended (as from 18th June 2014) Article 103 - Power to Make Rules
The
QFC Authority may make rules to the extent set out in theQFC Law , these Regulations and any other related Regulations made under theQFC Law conferring powers, duties or functions on theQFC Authority as it deems necessary or appropriate to enable it, theTax Department and theDirector of Tax to implement, carry out or enforce their duties, functions and powers under theQFC Law , these Regulations and any other related regulations made under theQFC law .Amended (as from 18th June 2014) Part 18: Part 18: Rulings by Tax Department
Amended (as from 18th June 2014) Article 104 - Policy Statement on Rulings
A key tenet of the
QFC tax regime is to provideQFC Entities with certainty and clarity regarding their tax liabilities. To support this objective theTax Department will provide an efficient and timely rulings procedure for specific transactions and, through the issue of practice notes, clarify general issues of difficulty or doubt about any aspect of these Regulations or theTax Rules .Amended (as from 18th June 2014) Article 105 - Rulings
(1) TheTax Department may, on application in writing by aQFC Entity , give a written ruling setting out theTax Department's position regarding the application of these Regulations and theTax Rules with respect to an arrangement proposed or entered into by theQFC Entity .(2) TheTax Department are not obliged to give a ruling where they are of the opinion that the main object, or one of the main objects of the arrangement proposed or entered into is the avoidance of tax, the application is frivolous or vexatious or the application does not involve genuine points of doubt or difficulty.(3) TheTax Rules may prescribe the form of an application under this Article, the fee payable and other administrative matters relating to rulings (TAX 7).(4) Subject to Article 105(5) a ruling under this Article is binding on theTax Department with respect to the application of these Regulations and theTax Rules , as in force at the time of the ruling, to theQFC Entity with respect to the arrangement, provided that—(a) theQFC Entity makes a full and true disclosure, prior to the ruling, to theTax Department of all aspects of the arrangement relevant to the ruling; and(b) the arrangement proceeds in all material aspects as described in the application.(5) A ruling given by theTax Department under this Article in respect of a proposed arrangement shall not be binding on theTax Department if the proposed arrangement has not been entered into within 12 months of the date of the ruling.(6) An application for a ruling in respect of an arrangement al entered into must be made at least 60 days prior to the filing date for the return for theAccounting Period during which the arrangement was entered into.(7) Where there is inconsistency between a practice note issued under Article 106 and a ruling under this Article, the terms of the ruling shall apply.Amended (as from 18th June 2014) Article 106 - Practice Notes
(1) TheTax Department may at any time, of their own accord or on request from aQFC Entity , issue a practice note setting out their interpretation of any aspect of these Regulations or theTax Rules .(2) A practice note is binding on theTax Department until revoked, but is not binding onQFC Entities .(3) TheTax Department shall make practice notes available to the public by such medium as they consider appropriate.Amended (as from 18th June 2014) Part 19: Part 19: Records and Returns
Amended (as from 18th June 2014) Article 107 - Policy Statement on Records and Returns
All
QFC Entities within the charge to tax must file a return for eachAccounting Period . Appropriate records are to be maintained and preserved and accounts, computations, and other documents, as specified by theTax Department , are to be submitted with the return. Each return is to contain a self-assessment of tax payable. Returns may be amended within 12 months of the filing date. Financial sanctions may be imposed in respect of late or incorrect returns. Returns may be filed electronically.Amended (as from 18th June 2014) Article 108 - Records
(1) TheTax Rules may specify the books of account and other records to be maintained and preserved byQFC Entities (TAX 6).(2) AQFC Entity which fails to maintain and preserve books of account and other records as specified in theTax Rules is liable to a financial sanction not exceedingQR 20,000.Amended (as from 18th June 2014) Article 109 - Obligation to File a Return
(1) EveryQFC Entity shall for eachAccounting Period file a return with theTax Department , on or before the filing date as defined by Article 111.(2) Every return shall be signed by the Representative of theQFC Entity filing the return and include a declaration to the effect that the return is to the best of his knowledge correct and complete.(3) Where no return for anAccounting Period is filed by aQFC Entity on or before the filing date theTax Department may determine, to the best of their information and belief, the amount of tax payable by thatQFC Entity for theAccounting Period in question.(4) A determination under Article 109(3) may not be made more than five years after the filing date for theAccounting Period in question.(5) If, after a determination of tax payable has been made under Article 109(3), theQFC Entity files a return for anAccounting Period ending in or at the end of theAccounting Period specified in the notice of determination, the self-assessment in that return supersedes the determination.(6) Article 109(5) does not apply to a return filed—(a) more than 5 years after the day on which the power to make a determination became exercisable; or(b) more than 12 months after the date of the determination, whichever is the later.(7) TheTax Rules may make procedural and administrative provisions regarding the making of a determination under this Article (TAX 8).Amended (as from 18th June 2014) Article 110 - Partnership Return
(1) The obligation to file a return under Article 109 shall apply, in the case of aQFC Entity that is aPartnership (other than anLLP ), to thePartnership rather than to thePartners .(2) APartnership return shall contain a statement of the allocation ofTaxable Profits (the profit share) between thePartners which shall be binding on them with regard to attributing tax liability to them under Article 62 for theAccounting Period in respect of which the return is filed.(3) A return of aQFC Entity which carries on a business inPartnership (other than by way of anLLP ), must include a statement of its share of any profit or loss.(4) Where the return of aQFC Entity (the "QFC member") includes, under Article 110(3), a share of a profit or loss in aPartnership , and thatPartnership is itself aQFC Entity (the "QFC Entity Partnership"), the share shall not be taxed or relieved, as the case may be, on the member to the extent it is taxed or relieved, as the case may be, on theQFC Entity Partnership .Amended (as from 18th June 2014) Article 111 - Filing Date
(1) The filing date for a return under Article 109 is 6 months from the end of theAccounting Period to which the return relates.(2) TheTax Rules may provide for an extension to the filing date (TAX 8).Amended (as from 18th June 2014) Article 112 - Self-Assessment
Every return filed under Article 109 must include an assessment (a "self-assessment") of the amount of corporation tax payable by the
QFC Entity for theAccounting Period for which the return is filed.Amended (as from 18th June 2014) Article 113 - Calculation of Tax Payable
(1) The amount of corporation tax payable for anAccounting Period is calculated by applying the appropriate rate of tax to theQFC Entity's Taxable Profits for theAccounting Period .(2) Except where otherwise provided, references in these Regulations and theTax Rules to the amount of tax payable by aQFC Entity for anAccounting Period are to the amount shown in theQFC Entity's self-assessment as the amount payable.Amended (as from 18th June 2014) Article 114 - Claims
The
Tax Rules may contain administrative provisions regarding the procedure for making claims (TAX 13).Amended (as from 18th June 2014) Article 115 - Prescribed Form and Information to Accompany Return
(1) A return filed under Article 109 shall—(a) be in the manner and form prescribed by theTax Department ; and(b) include such information, accounts, statements and reports as may reasonably be required by theTax Department for the purpose of ascertaining theTaxable Profits or tax losses, if any, and the tax liability of theQFC Entity filing the return.(2) TheTax Rules may contain administrative provisions relating to the electronic filing of returns (TAX 12).Amended (as from 18th June 2014) Article 116 - Amended Returns
(2) In the case of aPartnership a return may be amended by thePartnership's Representative .(3) A notice under this Article shall be in such form, contain such information and be accompanied by such statements as theTax Department may require.(4) AQFC Entity may not amend a return under this Article more than 12 months after the filing date.Amended (as from 18th June 2014) Article 117 - Acknowledgement of Returns
The
Tax Department shall, within 30 days of receiving a return filed under Article 109 or an amended return under Article 116, give notice in writing to theQFC Entity having filed the return to the effect that the return, or amendment, has been received.Amended (as from 18th June 2014) Article 118 - Obvious Errors
(1) TheTax Department may amend a return, by notice to theQFC Entity that filed the return, to correct obvious errors or omissions in the return whether errors of principle, arithmetical mistakes, or otherwise.(2) No correction under this Article may be made by theTax Department more than 4 months after—(a) the day on which the return was filed; or(b) if the correction is required in consequence of an amendment by theQFC Entity under Article 116, the day on which that amendment was made.Amended (as from 18th June 2014) Article 119 - Financial Sanctions Relating to Returns
(1) AQFC Entity which fails to file a return for anAccounting Period under Article 109 by the filing date as defined by Article 111, or the filing date as extended under theTax Rules (TAX 8), is liable to a flat-rate financial sanction under this Article. It may also be liable to a tax-related financial sanction under Article 119(4).(2) The flat-rate financial sanction is—(a)QR 3,000, if the return is delivered within 60 days from the filing date as defined by Article 111; and(b)QR 6,000, in any other case.(3) The flat-rate financial sanctions under Article 119(2) are increased toQR 5,000 andQR 10,000 respectively where—(a) theQFC Entity is within the charge to tax under these Regulations for three consecutiveAccounting Periods ;(b) theQFC Entity is obliged to file a return for each of thoseAccounting Periods under Article 109;(c) theQFC Entity was liable to a penalty under Article 119(1) in respect of the first two of thoseAccounting Periods ; and(d) theQFC Entity is liable to a penalty under Article 119(1) in respect of the thirdAccounting Period .(4) AQFC Entity which fails to file a return for anAccounting Period under Article 109 within 12 months after the filing date as defined by Article 111, or the filing date as extended under theTax Rules (TAX 8), is liable to a tax-related financial sanction, in addition to any flat-rate financial sanction under Article 119(1).(5) The tax related financial sanction is—(a) the higher ofQR 10,000 or 10% of any unpaid tax, if the return is delivered within 18 months after the filing date; and(b) the higher ofQR 20,000 or 20% of any unpaid tax, in any other case.(6) The “unpaid tax” means the amount of tax payable by theQFC Entity for theAccounting Period which the return was required remaining unpaid on the date the liability to the financial sanction under this Article arises.(7) Where corporation tax is charged by an assessment issued under Article 128 or by a determination made under rule 8.2 of theTax Rules , “tax payable by theQFC Entity for theAccounting Period which the return was required” in Article 119(6) shall mean the amount of tax assessed or determined to be payable by theTax Department under Article 128 or rule 8.2 of theTax Rules , respectively.(8) A financial sanction under Article 119(1) or the tax related financial sanction under Article 119(4) may be set aside if it appears to theTax Department , on application in writing by theQFC Entity for that purpose, that throughout the period of default theQFC Entity had a reasonable excuse for not filing the return. An application under this Article may not be made until the return in question has been filed and must be made within 30 days of that date.(9) AQFC Entity which—(a) fraudulently or negligently files a return which is incorrect; or(b) discovers that a return filed by it, neither fraudulently or negligently, is incorrect and does not remedy the error without unreasonable delay,is liable to a tax-related financial sanction of an amount not exceeding the tax understated.(10) The tax understated in Article 119(9) is the difference between the amount of tax payable by theQFC Entity for theAccounting Period for which the return is filed and the amount of tax which would have been so payable on the basis of the return filed.Amended (as from 18th June 2014) Part 20: Part 20: Enquiries
Amended (as from 18th June 2014) Article 120 - Policy Statement on Enquiries
The
Tax Department has broad powers, including information powers, to enquire into returns. An enquiry must normally be opened within 12 months of a return being filed or amended as the case may be. This limited enquiry window, together with a provision allowing theTax Department to indicate it does not intend to enquire into a return, givesQFC Entities a degree of certainty regarding their tax liability. The enquiry time limits are extended where theTax Department considers there has been fraud or neglect. AQFC Entity may ask, by way of appeal, for an enquiry to be closed if it considers theTax Department is not justified in continuing the enquiry.Amended (as from 18th June 2014) Article 121 - Notice of Enquiry and Notice of Intention not to Enquire
(1) TheTax Department may enquire into a return filed under Article 109 if it gives notice of its intention to do so ("notice of enquiry") to theQFC Entity which filed the return, within the time allowed.(2) The time allowed is—(a) if the return was filed on or before the filing date, up to the end of the period of 12 months after the filing date;(b) if the return was filed after the filing date, up to the end of the period of 12 months after the return was filed; and(c) if the return is amended under Article 116, up to the end of the period of 12 months after the amendment was made.(3) A return which has been the subject of one notice of enquiry may not be the subject of another, except one given in consequence of an amendment (or another amendment) of the return by theQFC Entity .(4) TheTax Department may, with regard to any return or amended return, inform aQFC Entity by notice in writing that it does not intend to raise an enquiry under this Article in respect of that return or amended return.(5) Where a notice has been given to aQFC Entity under Article 121(4) theTax Department may not commence an enquiry under this Article into the return or amended return specified in the notice unless they form the opinion that the return or amended return was filed fraudulently or negligently.Amended (as from 18th June 2014) Article 122 - Scope of Enquiry
(1) Subject to Article 122(2), an enquiry into a return filed under Article 109 may extend to anything contained in the return, or required to be contained in the return, including any claim.(2) If a notice of enquiry is given as a result of an amendment of a return under Article 116—(a) at a time when it is no longer possible to give notice of enquiry under Article 121(2)(a) or (b); or(b) after an enquiry into the return has been completed,the enquiry is limited to matters to which the amendment relates or which are affected by the amendment.Amended (as from 18th June 2014) Article 123 - Amendment of Self-Assessment During Enquiry to Prevent Loss of Tax or Overpayment of a Tax Credit
(1) Where an enquiry into a return is in progress and theTax Department forms the opinion—(a) that the amount stated in the self-assessment contained in the return as the amount of tax payable is insufficient or the amount of tax losses is inflated; and(b) that unless the self-assessment is immediately amended there is likely to be a loss of tax to theQFC or an overpayment of a tax credit in respect of aReimbursable Tax Loss under Part 16,theTax Department may by notice to theQFC Entity whose return is under enquiry, amend the self-assessment to make good the deficiency or inaccuracy.(2) In the case of an enquiry which under Article 122(2) is limited to matters arising from an amendment of a return, Article 123(1) applies only so far as the deficiency or inaccuracy is attributable to the amendment.(3) An appeal may be made against an amendment made under this Article by notice in writing to theTax Department , given within 30 days after the amendment was notified to theQFC Entity .(4) An appeal under Article 123(3) shall not be heard or determined before the completion of the enquiry.Amended (as from 18th June 2014) Article 124 - Completion of Enquiry
(1) An enquiry into a return filed under Article 109 is completed when theTax Department by notice (a "closure notice") informs theQFC Entity whose return it is that they have completed their enquiry and state their conclusions. The notice takes effect when it is issued.(2) A closure notice must either—(a) state that in the opinion of theTax Department no amendment of the return is required; or(b) make the amendments to the return to give effect to the conclusions.(3) AQFC Entity whose return is subject to an enquiry may apply, by way of an appeal, for a direction requiring theTax Department to issue a closure notice within a specific period.(4) Where an application under this Article is heard byThe Regulatory Tribunal , that tribunal shall give the direction applied for under Article 124(3) unless they are satisfied theTax Department has reasonable grounds for not giving a closure notice within a specified period.(5) An amendment of a return under Article 124(2)(b) shall displace any amendment of a self-assessment made during the course of the enquiry under Article 123.Amended (as from 18th June 2014) Article 125 - Notice to Produce Documents and Information
(1) Where theTax Department has given a notice of enquiry to aQFC Entity under Article 121(1), they may by notice require theQFC Entity —(a) to produce to them such documents as are in theQFC Entity's power or possession; and(b) to provide them with such information, in such form, as they may reasonably require for the purposes of the enquiry.(2) A notice under this Article must specify the time within which theQFC Entity is to comply with it.(3) TheTax Department may take copies of, or make extracts from, any documents produced to them under this Article.(4) An appeal may be made against a requirement imposed by a notice under this Article to produce information or provide documents.(5) Where an appeal under this Article is heard byThe Regulatory Tribunal , that tribunal—(a) shall set aside the notice so far as it requires the production of documents, or the provision of information, which appears to them as not reasonably required for the purposes of the enquiry; and(b) shall confirm the notice so far as it requires the production of documents, or the provision of information, which appears to them as reasonably required for the purposes of the enquiry.(6) A notice confirmed byThe Regulatory Tribunal (or in so far as it is confirmed) has effect as if the period specified in it for complying was 30 days from the determination of the appeal.(7) The decision ofThe Regulatory Tribunal on an appeal under this Article is final and binding.(8) AQFC Entity which fails to comply with a notice to produce documents or information under this Article is liable—(a) to a financial sanction ofQR 1,000; and(b) if the failure continues after a financial sanction is imposed under Article 125(8)(a), to a further financial sanction or financial sanctions not exceedingQR 1,000 for each day on which the failure continues.(9) No financial sanction shall be imposed under Article 125(8) in respect of a failure at any time after the failure has been rectified.Amended (as from 18th June 2014) Article 126 - Amendment of Return by QFC Entity During Enquiry
(1) This Article applies if a return is amended under Article 116 at a time when an enquiry into that return is in progress. The amendment does not restrict the scope of the enquiry.(2) So far as the amendment affects the amount stated in the self-assessment included in the return as the amount of tax payable or the amount of aReimbursable Tax Loss that entitles aQFC Entity to a payment of tax credit under Part 16, it does not take effect while the enquiry is in progress, and—(a) if theTax Department take the amendment into account in formulating the amendments contained in a closure notice issued under Article 124, or conclude the amendment is incorrect, the amendment shall not take effect;(b) otherwise the amendment takes effect when a closure notice under Article 124 concluding the enquiry is issued.Amended (as from 18th June 2014) Part 21: Part 21: Assessments
Amended (as from 18th June 2014) Article 127 - Policy Statement on Assessments
The self-assessment regime means that the
Tax Department need not routinely make assessments. An assessment may be made where it is discovered there has been a loss of tax or an overpayment of a tax credit in respect of aReimbursable Tax Loss under Part 16. Discovery assessments may not be made where information has been provided timeously. Assessments may only be made within specified time limits. Relief is provided for where aQFC Entity has overpaid tax due to an error or mistake in a return.Amended (as from 18th June 2014) Article 128- Discovery Assessments and Determinations
(1) If theTax Department discover with regard to anAccounting Period of aQFC Entity that—(a) an amount which ought to have been assessed to tax has not been assessed;(b) an assessment to tax is or has become insufficient; or(c) relief has been given which is or has become excessive, including relief under Part 16,they may, subject to Article 128(3), make an assessment (a "discovery assessment") in the amount or further amount which ought in their opinion to be charged or amended in order to make good the loss of tax or the overpayment of a tax credit in respect of aReimbursable Tax Loss under Part 16.(2) If theTax Department discover that a return filed by aQFC Entity for anAccounting Period incorrectly states—(a) an amount that affects, or may affect, the tax payable by thatQFC Entity for anotherAccounting Period ; or(b) an amount that affects, or may affect, the tax liability of anotherQFC Entity ,they may, subject to Article 128(3), make a determination (a "discovery determination") of the amount which in their opinion ought to have been stated in the return.(3) A discovery assessment or discovery determination under this Article may only be made if either Article 128(4) or Article 128(5) applies.(4) A discovery assessment for anAccounting Period for which aQFC Entity has filed a return, or a discovery determination, may be made if at the time that theTax Department —(a) ceased to be entitled to give notice of enquiry into the return; or(b) completed their enquiries into the return,they could not have been reasonably expected, on the basis of information made available to them before that time, to be aware of the situation mentioned in Article 128(1) or (2).(5) A discovery assessment for anAccounting Period for which aQFC Entity has filed a return, or a discovery determination, may be made if the situation mentioned in Article 128(1) or (2) is attributable to the fraudulent or negligent conduct of theQFC Entity or aPerson acting on thatQFC Entity's behalf.Amended (as from 18th June 2014) Article 129 - Time Limits for Assessments
(1) Subject to any provision of these Regulations allowing a longer period, no assessment may be made more than 6 years after the end of theAccounting Period to which it relates.(2) An assessment may be made for the purpose of making good a loss of tax or the overpayment of a tax credit in respect of aReimbursable Tax Loss under Part 16 attributable to the fraudulent or negligent conduct of aQFC Entity , or of anyPerson acting on thatQFC Entity's behalf, at any time up to 20 years after the end of theAccounting Period to which it relates.Amended (as from 18th June 2014) Article 130 - Error or Mistake
(1) If aQFC Entity that has paid tax under an assessment (whether a self-assessment or otherwise) asserts that the assessment was excessive by reason of some error or mistake in a return, it may make an application in writing to theTax Department for relief, not more than 6 years after the end of theAccounting Period to which the return relates.(2) On receiving an application under Article 130(1) theTax Department shall enquire into the matter and give such relief, by way of repayment, in respect of the error or mistake as is just and reasonable.(3) AQFC Entity may appeal against theTax Department's decision under Article 130(2).Amended (as from 18th June 2014) Article 131 - Assessment Procedure
(1) Notice of an assessment to tax must be served on theQFC Entity assessed stating—(a) the date on which the notice is issued; and(b) the period within which any appeal against the assessment may be made.(2) Where a notice of assessment has been served on aQFC Entity , the assessment may not be altered except in accordance with the provisions of these Regulations or theTax Rules .(3) TheTax Department shall keep a record of every assessment made.Amended (as from 18th June 2014) Part 22: Part 22: Appeals
Amended (as from 18th June 2014) Article 132 - Policy Statement on Appeals
This Part provides the framework for a dispute resolution process that is accessible, transparent and just. In the first instance the
Tax Department will review its own decisions. If a matter is not resolved by the review process, the appeal may be taken toThe Regulatory Tribunal and ultimately toThe QFC Court .QFC Entities have the right to bypass the review process.Amended (as from 18th June 2014) Article 133 - Appeal Procedure
(1) Within 60 days of the amendment to a return under Article 124(2)(b), the date of service of a notice of assessment under Article 128 or any other matter which may be appealed under these Regulations or theTax Rules , aQFC Entity may by notice in writing to theTax Department , appeal against the amendment, assessment, decision or determination.(2) A notice under Article 133(1) shall state the grounds of appeal.(3) All appeal proceedings under these Regulations and theTax Rules shall be brought beforeThe Regulatory Tribunal .Amended (as from 18th June 2014) Article 134 - Tax Department Review
(1) Subject to Article 134(4), upon receipt of an appeal under Article 133 theTax Department shall conduct a review of the subject matter of the appeal.(2) TheTax Department shall give theQFC Entity written notice of their decision following a review under Article 134(1).(3) If theQFC Entity agrees in writing to a decision issued by way of notice under Article 134(2) the appeal shall be regarded as determined by agreement under Article 135(5), in the terms of the notice, on the date the written agreement by theQFC Entity is received by theTax Department .(4) Where a review under this Article is in progress, and before a notice is issued under Article 134(2), aQFC Entity may apply to theTax Department , by notice in writing, for the appeal to be referred directly toThe Regulatory Tribunal and upon receipt of such an application theTax Department shall make the referral, notifying theQFC Entity in writing that it has done so.(5) If a referral toThe Regulatory Tribunal is made following an application from aQFC Entity under Article 134(4) theTax Department is not obliged to issue a decision notice under Article 134(2).Amended (as from 18th June 2014) Article 135 - Appeals
(1) If aQFC Entity is dissatisfied with theTax Department's decision under Article 134(2) theQFC Entity may apply to theTax Department , by notice in writing, for the appeal to be referred toThe Regulatory Tribunal and upon receipt of such an application theTax Department shall make the referral, notifying theQFC Entity in writing that it has done so.(2) Nothing in these Regulations or theTax Rules shall prevent aQFC Entity from referring an appeal directly toThe Regulatory Tribunal and requesting a hearing.(3) TheTax Rules may make administrative provisions regarding appeals.(4) Upon the hearing of an appeal,The Regulatory Tribunal may confirm, increase or order the reduction of any assessment or make any other order as they think fit.(5) Where, before an appeal is determined byThe Regulatory Tribunal , theQFC Entity and theTax Department come to an agreement in writing to disallow the appeal or to allow it either wholly or in part, the like consequences shall ensue for all purposes as would have ensued if, at the time the agreement was come to,The Regulatory Tribunal had determined the appeal in that manner.(6) An assessment or self-assessment, including a self-assessment amended under Article 124, shall stand good unless it is shown to the satisfaction ofThe Regulatory Tribunal , by examination of the appellant on oath or affirmation or by other evidence that the assessment is excessive.(7) Within 30 days of the final determination of an appeal byThe Regulatory Tribunal any party to the proceedings, if dissatisfied with the determination or decision as being erroneous in point of law, may by notice served onThe Regulatory Tribunal , require it to state and sign a case for the opinion ofThe QFC Court .Amended (as from 18th June 2014) Article 136 - Late Appeals
(1) An appeal may be brought out of time if on application for the purpose, theTax Department are satisfied there was a reasonable excuse for not bringing the appeal within the time limit, and that the application was made thereafter without unreasonable delay.(2) Where theTax Department do not accept an application under Article 136(1) theQFC Entity whose appeal it is may apply to theTax Department , by notice in writing, for that decision to be reviewed under Article 134 as if it were a separate appeal.(3) If the question of whether a late appeal should be accepted or not is referred to theRegulatory Tribunal , that Tribunal may hear the question separately, or as a preliminary matter in the hearing of the appeal itself.Amended (as from 18th June 2014) Part 23: Part 23: Information Powers
Amended (as from 18th June 2014) Article 137 - Policy Statement on Information Powers
The
Tax Department has wide powers in relation to obtaining information fromQFC Entities , including the examination and retention of documents and the examination of individuals. These powers will generally only be used to tackle serious cases of evasion or non-compliance and will not be used routinely.Amended (as from 18th June 2014) Article 138 - Notice to Obtain Information
(1) TheTax Department may, by service of a notice in writing, require aPerson , whether or not liable for tax under these Regulations—(a) to produce, including by way of creation of a document, within the time specified in the notice, any information that is described with reasonable certainty in the notice;(b) to attend at the time and place designated in the notice for the purposes of being interviewed by theDirector of Tax , or by anOfficer of the Tax Department authorised in writing by theDirector of Tax or a duly authorised agent of theTax Department , concerning the tax affairs of thePerson or any otherPerson ; or(c) to produce at an interview under Article 138(1) (b) and for the purposes of that interview any document, in the possession or power of thePerson , that is described with reasonable certainty in the notice.(2) This Article shall apply only toQFC Entities andPartners andMembers in, and directors, officers,Representatives , employees and trustees of,QFC Entities .(3) AnyPerson to be interviewed under Article 138(1)(b) is entitled to legal or other representation throughout the interview.(4) Where aPerson fails, wholly or in part, to comply with a notice under this Article they shall be liable to a financial sanction not exceedingQR 50,000.Amended (as from 16th June 2020) Part 24: Part 24: Payment and Recovery
Amended (as from 18th June 2014) Article 139- Policy Statement on Payment and Recovery
This Part provides for due dates of payment and the collection and recovery of corporation tax or an overpayment of a tax credit under Part 16. Tax paid late shall carry an additional charge and compensation is payable on refunds made by the
Tax Department . The rate of such charge or compensation, as applicable, will be set at a commercial rate and is not penal. The additional charge levied on tax paid late is not an allowable tax deduction, and compensation received on refunds is not taxable.Amended (as from 18th June 2014) Article 140 - Due and Payable Date
(1) Corporation tax for anAccounting Period is due and payable on the day following the expiry of 6 months from the end of that period.(2) However, where—(a) a self-assessment is amended under Article 116 or Article 124 any additional corporation tax is due and payable 30 days after the date on which the amendment is made;(b) corporation tax is charged by an assessment issued under Article 128 or recovered under Article 141 it is due and payable 30 days after the assessment is issued; or(c) corporation tax is charged by a determination made under rule 8.2 of theTax Rules it is due and payable 30 days after the date on which the determination is issued.Amended (as from 18th June 2014) Article 141 - Recovery of Overpayment
Where an amount of corporation tax has been repaid to a
QFC Entity which ought not to have been repaid, that amount of tax may be assessed and recovered as if it were unpaid tax.Amended (as from 18th June 2014) Article 142 - Collection and Recovery
(1) TheTax Rules may make provisions regarding the collection and recovery of tax payable under these Regulations.(2) Any tax, charge, financial sanction or other amount payable by aQFC Entity under these Regulations or theTax Rules is a debt due to theQFCA and ranks pari passu with any other amounts owed to theQFCA by thatQFC Entity .Amended (as from 18th June 2014) Article 143 - Late Payment of Tax Charge
(1) Tax due and payable under the provisions of these Regulations and theTax Rules shall carry an additional charge at the rate stipulated in theTax Rules (TAX 10) from the first day following the expiry of 6 months from the end of the Accounting Period (to which the tax due relates) to the date of payment.(2) The additional charge under Article 143(1) shall become due and payable as it is incurred.(3) The additional charge under Article 143(1) shall not be regarded as financial sanction under these Regulations.Amended (as from 12th June 2017). Article 144 - Compensation for Overpayment of Tax
Tax repayable under the provisions of these Regulations and the
Tax Rules , excluding any repayment made pursuant to Article 130, shall carry compensation at the rate stipulated in theTax Rules (TAX 10) from the later of—(a) the date on which the amount being repaid was received by theTax Department ; and(b) the due and payable date for that amount in accordance with Article 140(1), to the date of repayment.Amended (as from 18th June 2014) Article 145 - Tax Treatment of Charges and Compensation Under Articles 143 and 144
(1) In arriving at theChargeable Profits of aQFC Entity for anyAccounting Period a deduction shall not be allowed in respect of any additional charge levied under Article 143 during thatAccounting Period .(2) Any compensation paid to aQFC Entity under Article 144 shall not be included in the calculation ofChargeable Profits of theQFC Entity for theAccounting Period during which the compensation was paid by theTax Department .Amended (as from 18th June 2014) Article 146 - Due and Payable Date in Respect of an Overpayment of a Tax Credit
(1) Where:(a) a self-assessment is amended under Article 116 or Article 124 and as a result a payment of a tax credit in respect of aReimbursable Tax Loss has been paid under Part 16 which is excessive, the amount reflecting the excess is due and payable 30 days after the date on which the amendment is made; or(b) an assessment issued under Article 128 determines that a payment of a tax credit in respect of aReimbursable Tax Loss under Part 16 is excessive, the amount reflecting such excess is due and payable 30 days after the assessment is issued.Inserted (as from 18th June 2014) Part 25: Part 25: Financial Sanctions
Amended (as from 18th June 2014) Article 147 - Criminal Proceedings
These Regulations and the
Tax Rules do not affect any criminal proceedings that may be taken in theState and do not themselves impose any criminal sanctions.Amended (as from 18th June 2014) Article 148 - Determination of Financial Sanction
(1) TheTax Department may make a determination imposing a financial sanction under any provision of these Regulations that provides for a financial sanction, determining the amount of the financial sanction at such level, up to the maximum amount provided for, as they consider correct and appropriate except that a determination in respect of a financial sanction under Article 119(1) shall be up to an amount of QR 20,000 or, in respect of a tax-related sanction imposed by Article 119(4), 20% of any unpaid tax (if higher thanQR 20,000).(2) Notice of a determination of a financial sanction under this Article shall be served on thePerson liable to the financial sanction and shall state the date on which it is issued and the time within which an appeal against the determination may be made.(3) The provisions of these Regulations regarding appeals, collection and recovery shall apply with respect to the determination of a financial sanction issued under this Article as if the determination were an assessment to corporation tax and the financial sanction imposed by the determination was tax payable under such an assessment issued on the same day as the determination of the financial sanction.(4) The financial sanction imposed by a notice of determination issued in accordance with this Article shall be due and payable 30 days from the date of issue of the notice.(5) Where the amount of a financial sanction is to be ascertained by reference to tax payable by aQFC Entity for anyAccounting Period the financial sanction may be determined—(a) at any time within 6 years after the date on which the financial sanction was incurred; or(b) within 3 years after the final determination of the amount of tax by reference to which the amount of the financial sanction is to be ascertained,whichever is later.(6) Where the amount of any financial sanction is to be ascertained other than by reference to tax payable by aQFC Entity for anyAccounting Period the financial sanction may be determined at any time within 6 years after the date on which the financial sanction was incurred.(7) TheTax Department may in their discretion mitigate, partly or wholly, or entirely remit any financial sanction exigible under these Regulations.Amended (as from 18th June 2014) Part 26: Part 26: Miscellaneous and Supplemental
Amended (as from 18th June 2014) Article 149 - Responsibility of Representatives
Anything specified to be done by a
QFC Entity under these Regulations and theTax Rules shall be done by theQFC Entity acting through itsRepresentative and service on aQFC Entity of any document under or in pursuance of these Regulations or theTax Rules may be effected by serving it on itsRepresentative .Amended (as from 18th June 2014) Article 150 - Dividend Exemption and Exempt Returns on Public Treasury Bonds
(1) The receipt of a dividend shall be exempt from tax under these Regulations.(2) Interest and returns on public treasury bonds are exempt from tax under these Regulations.Amended (as from 18th June 2014) Article 151 - Government Exemption
The Government of
Qatar , local authorities, statutory bodies and anyQFC Entity wholly owned by the Government ofQatar or by any of the aforementioned authorities or bodies are exempt from tax under these Regulations.Amended (as from 18th June 2014) Part 27: Part 27: Interpretation and Definitions
Amended (as from 18th June 2014) Article 152- Interpretation
(1) In these Regulations, a reference to—(a) a provision of any law or regulation includes a reference to that provision as amended or re-enacted from time to time;(b) an obligation to publish or cause to be published a particular document shall, unless expressly provided otherwise in these Regulations, include publishing or causing to be published in printed or electronic form;(c) a calendar year shall mean a year of the Gregorian calendar;(d) a month shall mean a month of the Gregorian calendar;(e) the masculine gender includes the feminine and the neuter; and(f) writing includes any form of representing or reproducing words in legible form.(2) The headings in these Regulations shall not affect their interpretation.(3) These Regulations are to be interpreted in keeping with the spirit of the Regulations and with regard to the objective and purpose as well as the letter of the Regulations.(4) The object and purpose of any provision in these Regulations will be derived primarily from the wording of the provision itself and from the context both within the Part of the Regulations in which it appears and other related provisions elsewhere in the Regulations.(5) A reference in these Regulations to an Article or Part using a short form description of such Article or Part in parenthesis are for convenience only and the short form description shall not affect the construction of the Article or Part to which it relates.(6) A reference in these Regulations to a Part or Article by number only, and without further identification, is a reference to a Part or Article of that number in these Regulations.(7) A reference in an Article or other division of these Regulations to a paragraph, subparagraph or Article by number or letter only, and without further identification, is a reference to a paragraph, sub-paragraph or Article of that number or letter contained in the Article or other division of these Regulations in which that reference occurs.(8) Any reference in these Regulations to "include", "including", "in particular", "for example", "such as" or similar expressions shall be considered as being by way of illustration or emphasis only and are not to be construed as limiting the generality of any words preceding them.(9) Any reference in these regulations to profit and loss account includes a reference to the income statement of aQFC Entity preparing accounts underIFRS .Amended (as from 18th June 2014) Article 153- Definitions
The following words and phrases shall, where the context permits, have the meanings shown against each of them—
51% Interest —
(a) in relation to aCompany , aPerson has a51% Interest in aQFC Entity that is aCompany if more than 50% of theOrdinary Share Capital of theQFC Entity is held, directly or indirectly, by thatPerson ; and(b) in relation to anLLP , aPerson has a 51% interest in aQFC Entity that is anLLP if thatPerson beneficially owns more than (i) 50% of theLLP assets; or (ii) 50% of the income earning rights in theLLP .Accounting Period — has the meaning given by Article 17.
Accounting Profit — has the meaning given by Article 15.
Approved QFC Entity — has the meaning given by Article 84(3).
Associated — has the meaning given by Article 56.
Authorisation — an authorisation granted by the
Regulatory Authority under Part 5 of theFinancial Services Regulations to carry onRegulated Activities .Authorised Firm — a
Person that has been granted, and continues to hold, anAuthorisation in accordance with Part 5 of theFinancial Services Regulations .Chargeable Profits — has the meaning given by Article 11(2).
Charitable Loan Arrangement — any arrangement so far as it consists of a loan of money made by an individual to a
Charity either (a) for no consideration, or (b) for a consideration which consists only of interest.Charity — an entity established only for the purpose of the relief of poverty, the advancement of education or religion, the promotion of health or art, the protection of the environment or any other purposes which are beneficial to the general public.
Claimant Entity — has the meaning given by Article 32(1).
Company — any body corporate, but does not include any
Partnership .Company Regulations 2005 — The QFC Regulations No.2 — Companies Regulations.
Concessionary Rate — has the meaning given by Article 90.
Concessionary Rate Charge — has the meaning given by Article 91(1).
Connected or Connected Persons — has the meaning given by Article 57(4). In addition, a
Company or aPartnership is connected with anotherCompany orPartnership if the samePerson hasControl of both, or aPerson hasControl of one andPersons connected with him, or he andPersons connected with him, haveControl of the other.Contract of Insurance — the specified product described in paragraph 10 of Part 3 of Schedule 3 of the
Financial Services Regulations .Contract of Reinsurance — a
Contract of Insurance covering all or part of a risk to which aPerson is exposed under aContract of Insurance .Control — has the meaning given by Article 57.
Core Income Generating Activities — has the meaning set out in the rules provided for in the 2015 final report on BEPS Action 5 on Countering Harmful Tax Practices More Effectively, Taking into Account Transparency and Substance, or any later rules in substantially the same or equivalent terms.
Conventional Finance Transaction — any financial transaction that is not an
Islamic Finance Transaction .Conventional Financial Institution — a
Financial Institution that is not anIslamic Financial Institution .Director of Tax — the person appointed by the
QFC Authority to be responsible for the day to day administration and operations of theTax Department .Disguised Member — a
Person who performs services for anLLP and receivesRemuneration .Disguised Partner — a
Person who performs services for aGP & LP Partnership and receivesRemuneration .Distribution —
(a) in relation to aCompany , any dividend paid by aCompany , including a capital dividend, or anything distributed out of assets of aCompany in respect of shares and securities in theCompany ; or(b) in relation to aPartnership , any distribution of the profits of thePartnership .Double Taxation Agreement — an agreement made between
Qatar and another country for the purposes of avoiding double taxation in relation to income tax, corporation tax or any other taxes of a similar nature.Financial Institution — A
Person who carries on, in any jurisdiction, the business of banking, deposit-taking, provision of credit facilities, factoring of debts, trading or dealing in investments whether as principal or as agent, insurance, reinsurance, asset management or any similar business or combination of such businesses. Provided that for the purposes of Article 10 aQFC Entity whose activities in anAccounting Period are wholly within the activities described at PIIB 1.3.4 (Category 4 activities) shall not be regarded as aFinancial Institution for thatAccounting Period .Financial Services Regulations — QFC Regulations No. 2 — Financial Services Regulations.
GAAP — generally accepted accounting principles.
General Partnership — has the meaning given by Article 9 of the
Partnership Regulations 2007 .GP & LP Partnership — has the meaning given by Article 61.
Group — has the meaning given by Article 34.
Group Relief — has the meaning given by Article 32.
Holding Company — has the meaning given in the Special Company Regulations.
IFRS — International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board, including International Accounting Standards (IASs) issued by its predecessor, the Board of the International Accounting Standards Committee.
Initial Accounting Period — the first
Accounting Period of aQFC Entity under these Regulations.Insolvency Regulations 2005 — The QFC Regulations No. 5 — Insolvency Regulations.
Insurance Business — is the business of conducting either or both of the following
Regulated Activities : (a) effectingContracts of Insurance ; (b) carrying outContracts of Insurance .Insurer — a
Person carrying on either or both of theRegulated Activities of effecting aContract of Insurance or carrying out aContract of Insurance , as defined in Part 2 of Schedule 3 of theFinancial Services Regulations .Intangible Fixed Asset — an identifiable non-monetary asset that is without physical substance and which is properly recognised in the relevant
QFC Entity's accounts.Internal Intangible Fixed Asset — has the meaning given by Article 24(3).
Investment Manager — A QFC Entity that carries on one or more of the
Qualifying Investment Activities .Islamic Finance Transaction — a financial transaction conducted in accordance with Shari'a.
Islamic Financial Business — the business of carrying on one or more
Regulated Activities in accordance with Shari'a.Islamic Financial Institution — an
Authorised Firm whoseAuthorisation includes a condition that the whole of the firm's business must be conducted in accordance with Shari'a.Islamic Window — the part of an
Authorised Firm's business conducted in accordance with Shari'a, where theAuthorised Firm conducts a part (but not the whole) of its business in accordance with Shari'a.Licensed Activity — the activities a
QFC Entity is permitted to carry on under the terms of itsQFC Licence .Limited Liability Partnership Regulations 2005 — The QFC Regulations No.7 — QFC Limited Liability Partnership Regulations.
Limited Partnership — has the meaning given by Article 9 of the
Partnership Regulations 2007 .LLC — a limited liability company incorporated under the Company Regulations 2005
LLP — has the meaning given by Article 64.
Local Source, Local Source Profits and Local Source Taxable Profits — derive their meaning from Article 10(1) read in conjunction with Article 11(1).
Market Value — the price an asset might reasonably be expected to fetch on a sale in the open market.
Member — unless the context requires otherwise, has the meaning given by Article 65(2)
Minister — the Minister of Economy and Finance.
Non-QFC Limited Liability Partnership — has the meaning given by Article 74 of the
Limited Liability Partnership Regulations 2005 .Non-QFC Partnership — has the meaning given by Article 95 of the
Partnership Regulations 2007 .Officer of the Tax Department — any
Tax Department employee authorised by theDirector of Tax to exercise duties, powers and functions under these Regulations.Ordinary Share Capital — all the issued share capital of a
Company other than capital which only gives a right to a fixed rate dividend.Other Permitted Form of QFC Entity — an entity whose legal form is:
(a) permitted under regulations made under theQFC Law or rules made by theRegulatory Authority orQFC Authority ; or(b) otherwise permitted under an approval, authority or licence (however described) given by theQFC Authority under theQFC Law .Ownership — has the meaning of beneficial ownership.
Partners —
Persons considered to be a partner under Article 7 of thePartnership Regulations 2007 .Partnership — any
GP & LP Partnership and anyLLP .Partnership Regulations 2007 — QFC Regulations No. 13 — QFC Partnership Regulations.
Passive Interest Income — interest income derived by a
Person other than aFinancial Institution .Permanent Establishment — as defined by (i) the rules which, at the enactment of these Regulations, were contained in Article 5 of the Model Tax Convention on Income and on Capital published by the OECD, or (ii) any later rules in substantially the same or equivalent terms.
Person — includes a natural or legal person, body corporate or body unincorporate, including any
Partnership .PIIB — QFC Investment and Banking Business Rules 2005.
Private Placement Scheme — has the meaning given by Article 83(3).
Qatar — the State of Qatar.
Qatari Nationals — individuals holding, or entitled to hold, a Qatari passport.
Qatari Owned QFC Entity — has the meaning given by Article 89.
QFC — the Qatar Financial Centre.
QFC Authority or QFCA — the Qatar Financial Centre Authority established pursuant to Article 3 of the
QFC Law .QFC Captive Insurer — has the meaning given in the QFC Captive Insurance Business Rules 2011.
QFC Entity — a body corporate,
Partnership , individual, unincorporated association, which has been granted, and continues to hold, aQFC Licence , or a trust registered with the QFCA.QFC Law — Law No. (7) of 2005 of the State, as amended by Law No.(14) of 2009 of the
State .QFC Partnership —
(a) aGP & LP Partnership incorporated or otherwise established under the Partnership Regulations 2007; or(b) a limited liability partnership incorporated or otherwise established under the Limited Liability Partnership Regulations 2005.QFC Licence — a licence, approval or authorisation issued by the
QFCA pursuant to Article 11.1 of theQFC Law .QFC Scheme — has the meaning given by Article 83(2).
QR — Qatari Riyals.
Qualifying Investment Activity — have the meaning given by Article 88(5).
Registered Fund — has the meaning given by Article 83(1).
Regulated Activities — an activity that is a regulated activity under the Financial Services Regulations.
Regulatory Authority — the
Regulatory Authority of theQFC established pursuant to Article 8 of theQFC Law .Reimbursable Accounting Period — the Initial Accounting Period and the Succeeding Accounting Period.
Reimbursable Tax Loss — has the meaning given by Article 95.
Reinsurance Business — the business of entering into and managing
Contracts of Reinsurance .Reinsurer — an
Insurer whose business consists of, or includes, the carrying on of aReinsurance Business .Remuneration — means any remuneration, salary, bonus, income, compensation, emoluments or other amount paid to a
Person , which is a distribution of, based on, or otherwise calculated by reference to, the profits of aPartnership .Representative — in relation to an LLC a person appointed under Article 60 of the
Company Regulations 2005 (Secretary), in relation to an LLP a Designated Member, which shall be construed in accordance with Article 15 of theLimited Liability Partnership Regulations 2005 (Designated Member), in relation to a Limited Partnership a General Partner, which shall be construed in accordance with Article 37 of thePartnership Regulations 2007 , in relation to a branch a person appointed under Article 117(2)(A) of theCompany Regulations 2005 (Principal Representative), Article 45(2)(A) of theLimited Liability Partnership Regulations 2005 (Principal Representative) or Article 75(2)(A) of thePartnership Regulations 2007 , as applicable, and in relation to any otherQFC Entity any person appointed under the relevantQFC law to represent theQFC Entity .Resident in Qatar — has the meaning given by Article 8.
Settlement — includes any disposition, trust, covenant, agreement, arrangement or transfer of assets, except that it does not include a
Charitable Loan Arrangement .Settlor — in relation to a
Settlement , means anyPerson by whom theSettlement was made.Single Family — a family described in Article 8 of the
Single Family Office Regulations .Single Family Office Regulations — The QFC Regulations No. 16 — QFC Single Family Office Regulations.
Special Company Regulations — The QFC Regulations No. 15 — QFC Special Company Regulations.
Special Purpose Company — has the meaning given in the Special Company Regulations.
State — the State of Qatar.
Succeeding Accounting Period — the
Accounting Period of aQFC Entity immediately succeeding theInitial Accounting Period .Surrendering Entity — has the meaning given by Article 32(1).
Taxable Profits — has the meaning given by Article 11(1).
Tax Department — the division of the
QFC Authority , administered by theDirector of Tax and responsible to the Director General, entrusted with the imposition, administration and collection of tax enacted under Article 17 of theQFC Law .Tax Rules — rules made under Article 103.
The QFC Court — The Civil and Commercial Court of The Qatar Financial Centre established pursuant to
QFC Law .The Regulatory Tribunal — The Qatar Financial Centre Regulatory Tribunal established pursuant to
QFC Law .Trust Regulations 2007 — QFC Regulations No. 12 — QFC Trust Regulations.
UK GAAP — generally accepted accounting principles in the United Kingdom.
US GAAP — generally accepted accounting principles in the United States.
Amended (as from 16th June 2020)
QFC Legislation