The General Tax Authority (GTA) stressed that the Excise Tax represents a real investment in human capital and is designed to help build a healthier society by discouraging the consumption of harmful goods, and it aimed at a more healthy and environmentally healthy society and a sustainable healthy lifestyle. The taxation system also lays the foundation for a better economic future that is strong and sustainable.
The GTA will support the goals of the Qatar National Vision 2030 to ensure the sustained welfare of citizens and residents, and provide a mechanism for Qatar to reduce its dependence on a hydrocarbon-based economy. The statement pointed out that the establishment of the Authority is considered one of the means of achieving greater economic stability of the State and maintaining its sustainability, and even increasing it at the same level.
The success of the GTA in following up its role and the unity of the State sectors will have a positive impact on the level of living of the individual in the coming decades, especially in the case of declining dependence on the hydrocarbon resources of the state or during periods of recession that may go through these resources. The GTA has been established as a separate entity, under the supervision of the Ministry of Finance, and will be in charge of implementing all tax laws and improving tax compliance.
The law establishing the GTA, mandates the authority to, implement all tax laws and setup all related bylaws, procedures and instructions and be responsible for their implementation, review and assess tax return forms, collect taxes from subject entities,represent Qatar in relevant international and regional organizations and at international conferences and events,and sign tax agreements with other countries to encourage economic cooperation and joint investments.
The GTA will regulate the work of the taxation system through financial instruments that positively influence the level of welfare of citizens and residents alike, as well as improve public services such as healthcare, education, roads and infrastructure.
The taxation system also lays the foundation for a better economic future that is strong and sustainable. As tax resources are considered as the safest, and it is one of the most important pillars in support of the national economy of any country, especially when the tax system deals with the issues of justice and proceeds, and be applied in accordance with the latest regulations and international tax standards.
The Income Tax law number 24 of 2018 amends the previous law on corporate income tax and stipulates that the salaries and wages of citizens and residents shall not be subject to any tax and grants exemptions for equity shares listed on a recognized stock exchange, profits of banking deposits and companies working in the agricultural sector and fisheries. Marine and aerial transportation are also exempted from tax on condition of reciprocity.
The corporate income tax on foreign companies working in Qatar or on the stake of foreign partners in joint ventures remains at the same level, which is 10 percent of the taxable income. The GTA stressed that the income tax law came in many tax reform procedures. The reform process focused on facilitating procedures according to international standards in this framework without increasing the price or type of tax, as well as innovative scientific solutions in the areas of information exchange and action, in a manner that allows for the improvement of the climate attractive to investment.
The Excise Tax law number 25 of 2018 came into force on January 1, 2019 and imposes a tax on certain health-damaging goods. It includes a list of the targeted goods, with a 100 percent tax on tobacco products, alcohol and energy drinks and a 50 percent tax on carbonated drinks, and a 100 percent tax on special purpose goods.
