Qatar’s Council of Ministers issued Decision No. 3 of 2023 on 16 May, which amends the Executive Regulations to the Income Tax Law in respect of permanent establishments (PEs) and related changes introduced by Law No. 11 of 2022.
Law No. 11 of 2022, which was gazetted on 2 February, introduced new provisions for the taxation of certain income arising from sources outside Qatar, including income from immovable property, dividends, royalties, interest, technical service fees, and other services, provided that such income is not attributable to a foreign permanent establishment.
The amended regulations principally focus on:
- The expanded definition of permanent establishment (PE) in the Income Tax Law.
- A revised determination of taxable income for a PE.
- Amendments to certain criteria for tax exemption.
- Expanded powers of the General Tax Authority (GTA) to collect information.
- New economic substance rules.