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 a Company, a Person has a 51% Interest in a QFC Entity that is a Company if more than 50% of the Ordinary Share Capital of the QFC Entity is held, directly or indirectly, by that Person; and
(b) in relation to an LLP, a Person has a 51% interest in a QFC Entity that is an LLP if that Person beneficially owns more than (i) 50% of the LLP assets; or (ii) 50% of the income earning rights in the LLP.

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 the Financial Services Regulations to carry on Regulated Activities.

Authorised Firm — a Person that has been granted, and continues to hold, an Authorisation in accordance with Part 5 of the Financial 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 a Partnership is connected with another Company or Partnership if the same Person has Control of both, or a Person has Control of one and Persons connected with him, or he and Persons connected with him, have Control 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 a Person is exposed under a Contract 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 an Islamic Financial Institution.

Director of Tax — the person appointed by the QFC Authority to be responsible for the day to day administration and operations of the Tax Department.

Disguised Member — a Person who performs services for an LLP and receives Remuneration.

Disguised Partner — a Person who performs services for a GP & LP Partnership and receives Remuneration.

Distribution

(a) in relation to a Company, any dividend paid by a Company, including a capital dividend, or anything distributed out of assets of a Company in respect of shares and securities in the Company; or
(b) in relation to a Partnership, any distribution of the profits of the Partnership.

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 a QFC Entity whose activities in an Accounting Period are wholly within the activities described at PIIB 1.3.4 (Category 4 activities) shall not be regarded as a Financial Institution for that Accounting 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 a QFC 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) effecting Contracts of Insurance; (b) carrying out Contracts of Insurance.

Insurer — a Person carrying on either or both of the Regulated Activities of effecting a Contract of Insurance or carrying out a Contract of Insurance, as defined in Part 2 of Schedule 3 of the Financial 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 whose Authorisation 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 the Authorised 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 its QFC 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 the Director 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 the QFC Law or rules made by the Regulatory Authority or QFC Authority; or
(b) otherwise permitted under an approval, authority or licence (however described) given by the QFC Authority under the QFC Law.

Ownership — has the meaning of beneficial ownership.

PartnersPersons considered to be a partner under Article 7 of the Partnership Regulations 2007.

Partnership — any GP & LP Partnership and any LLP.

Partnership Regulations 2007 — QFC Regulations No. 13 — QFC Partnership Regulations.

Passive Interest Income — interest income derived by a Person other than a Financial 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, a QFC Licence, or a trust registered with the QFCA.

QFC LawLaw No. (7) of 2005 of the State, as amended by Law No.(14) of 2009 of the State.

QFC Partnership

(a) a GP & 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 the QFC 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 the QFC established pursuant to Article 8 of the QFC 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 a Reinsurance 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 a Partnership.

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 the Limited 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 the Partnership Regulations 2007, in relation to a branch a person appointed under Article 117(2)(A) of the Company Regulations 2005 (Principal Representative), Article 45(2)(A) of the Limited Liability Partnership Regulations 2005 (Principal Representative) or Article 75(2)(A) of the Partnership Regulations 2007, as applicable, and in relation to any other QFC Entity any person appointed under the relevant QFC law to represent the QFC 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 any Person by whom the Settlement 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 a QFC Entity immediately succeeding the Initial 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 the Director of Tax and responsible to the Director General, entrusted with the imposition, administration and collection of tax enacted under Article 17 of the QFC 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)