• 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) A QFC 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 Qatar
      may elect for special exempt status.
      (2) Subject to Article 86A, a QFC Entity on electing for special exempt status shall be exempt from tax under these Regulations for the Accounting 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 the Tax Department within 6 months from the end of the Accounting 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 any QFC 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 a Distribution and paid in priority to other Distributions and performance fees.
      Amended (as from 21th December 2020)

    • Article 83 - Registered Fund

      (1) A Registered Fund is a QFC Scheme or a Private Placement Scheme.
      (2) A QFC Scheme has the meaning given by Rule 1.2.6 of the Collective Investment Scheme Rules 2010.
      (3) A Private 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 any Company, Partnership, trust or Other Permitted Form of QFC Entity which—
      (a) is not a Registered Fund;
      (b) is managed by an Approved 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 a Single Family.
      (3) An Approved QFC Entity is a Person permitted to manage the special investment fund under an approval, an authority or a licence (however described) given by the QFC Authority under the QFC Law.
      Amended (as from 18th June 2014)

    • Article 85 - Special Funding Company

      (1) A special funding company is a Company 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 other Companies where the whole, or substantially the whole, of the Company'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 a Special Purpose Company, any of the activities listed in Article 9.1(a) to (d) of the Special Company Regulations;
      (f) in relation to a Holding Company, any of the activities listed in Article 20.1(a) to (f) of the Special 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 a QFC Entity established solely for the purposes of managing risk, but which is not a QFC Captive Insurer.
      (2) To qualify as an alternative risk vehicle, 75% of the risk management activities must relate to members of the same Group to which the alternative risk vehicle belongs.
      Amended (as from 18th June 2014)

      • Article 86A – Conditions for the Special Exempt Status

        (1) A QFC 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 an Accounting Period must ensure that the following conditions are met during that Accounting Period:
        (a) The QFC Entity has in Qatar an adequate number of full-time employees with adequate qualifications to perform their professional responsibilities;
        (b) The QFC Entity incurs an adequate amount of operating expenditures to undertake its activities; and
        (c) The QFC Entity ensures that its Core Income Generating Activities are carried out in Qatar.
        (2) The Tax 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 the Tax Department consider that the sole or main purpose of the QFC Entity is the avoidance of tax under these Regulations.