Doha, Qatar: As part of its ongoing efforts to align the national tax system with international best practices, the General Tax Authority announces the commencement of the implementation of Chapter Seven (Repealed and Re-enacted) of the Income Tax Law issued under Law No. (24) of 2018 and its amendments, which sets out the rules for applying the global and domestic minimum tax.
This decision comes within the context of implementing Pillar Two of the global initiative led by the Organization for Economic Co-operation and Development (OECD) and the Group of Twenty (G20) to address the tax challenges arising from the digitalisation of the economy, known as
the Global Minimum Tax Agreement. This imposes an effective minimum tax rate of 15% on the profits of multinational enterprises with foreign operations, provided that their revenues exceed €750m.
It also represents the implementation of the latest amendment to the Income Tax Law and introduces two fundamental rules in modern tax policy: the Global Minimum Tax (Qualified Income Inclusion Rule) and the Domestic Minimum Tax (Qualified Domestic Minimum Top-up Tax). This decision also underscores the State’s leading role in strengthening the Inclusive Framework of the OECD and the G20 on Base Erosion and Profit Shifting (BEPS), as well as in protecting the national tax base from the unlawful shifting of profits to low-tax jurisdictions or the loss of national tax revenues to other countries.
