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) Where
Qatarhas entered into Double Taxation Agreements, the provisions of those Double Taxation Agreementsshall apply in preference to any similar provisions in these Regulations and the Tax Rules.(2) Credit for tax paid under the law of any country other than Qataris 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 a Double Taxation Agreementmade between Qatarand 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 than
Qataron income subject to tax under these Regulations, by allowing that tax as a credit against corporation tax, notwithstanding that no Double Taxation Agreementsare 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 to QFC Entitiesregarded as Resident in Qatarunder 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 the
QFCAunder these Regulations on the income in respect of which that overseas tax has been paid.
Article 40 - Election to Treat as an Expense
QFC Entitymay elect, in writing to the Tax Departmentwithin 18 months from the end of an Accounting Period, for overseas tax paid in respect of overseas income subject to tax under these Regulations in that Accounting Periodto 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.