Article 88 - Election for the Application of the Concessionary Rate
(1) This Part applies to a
QFC Entity that is—
Qatari Owned QFC Entity;
QFC Captive Insurer;
(2) Subject to Article 88(8), a
QFC Entity that is a Qatari Owned QFC Entity or a QFC Captive Insurer may elect for its Chargeable Profits to be charged to tax at the Concessionary Rate.
(3) Subject to Article 88(8), a
QFC Entity that is a Reinsurer may elect for its Chargeable Profits arising from its Reinsurance Business to be charged to tax at the Concessionary Rate and for this purpose income of a Reinsurance Business shall include investment income related to that Reinsurance Business.
(4) Subject to Article 88(6) and Article 88(8), a
QFC Entity that is an Investment Manager may elect for its Chargeable Profits arising from carrying on Qualifying Investment Activities to be charged to tax at the Concessionary Rate.
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 an
Investment Manager under this Article shall only be valid for an Accounting Period if the Investment Manager meets all the following requirements in that Accounting Period:
Investment Manager is duly authorized to carry on the Qualifying Investment Activities;
Investment Manager employs on a full-time basis an adequate number of qualified investment professionals that are resident in Qatar 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 the
Investment Manager is at least QAR 150 million;
Investment Manager incurs an adequate amount of operating expenses, which shall not be less than QAR 1,000,000 per Accounting Period; and
Investment Manager's accounts are audited and reported on by an external auditor.
(7) An election under this Article shall be made in writing to the
Tax Department within 6 months from the end of the first Accounting Period to which the election is to apply and once made will remain in force in respect of the three subsequent Accounting Periods.
(8) An election under this Article shall only be valid if the
QFC Entity has paid the Concessionary Rate Charge to the Tax Department in accordance with Article 91.
Tax Department shall monitor QFC Entities that made an election under this Article to ensure that the Core Income Generating Activities are carried out in Qatar.
(10) An election under this Article will not be valid if the
Core Income Generating Activities are not carried out in Qatar or the Tax Department consider that the sole or main purpose of the QFC Entity is the avoidance of tax under these Regulations.
|Amended (as from 18th July 2019)|