What is Double Taxation?
Double taxation occurs when the same person is subject to tax on the same items of income (and/or capital) in more than one jurisdiction. If it remains unaddressed, double taxation can hinder international trade and economic growth.
What is a Double Taxation Agreement?
Double Taxation Agreements (DTAs) are treaties between two or more jurisdictions to avoid double taxation. They allow the contracting jurisdictions to share their taxation rights in relation to income earned by their respective residents. They also allow prevention of tax evasion and ensure that taxpayers in both jurisdictions are treated equally.
Qatar has concluded more than 80 DTAs with most of its economic partners. While there are certain common features in these DTAs, each agreement remains a different and separate treaty with its own provisions. It is, therefore, necessary to check the respective agreement to ascertain the tax position and the benefits potentially available under the treaty.
Tax benefits under DTA include non-taxation of non-resident companies with no permanent establishments in Qatar and reduced rates of (or exemption from) withholding tax on payments made to Qatari residents, provided certain conditions are met.