Qatar is located on the east side of Arabian Peninsula, with a total area of 11,521 square kilometers, equivalent to .7 Beijing. Qatar has no clear provincial administrative divisions, centering on some major cities. As of September 222, the total population of Qatar was 2.658 million, and the population of Doha, the capital, was 1.4 million.
Qatar is rich in oil and gas resources. The proven crude oil reserves account for 1.5% of the world's crude oil reserves, and the natural gas reserves rank third in the world, second only to Russia and Iran. Oil, natural gas and related petrochemical industries are the pillar industries in Qatar, and their output value has long accounted for more than 5% of Qatar's GDP. In 22, the per capita GDP of Qatar residents (including foreigners who have lived for more than one year) will be 55, US dollars, ranking among the top in the world.
The 22nd World Cup is being held in Qatar, which has become the focus of the world.
The oil and natural gas industries are the economic pillars of Qatar, but in recent years Qatar has been promoting diversified economic development. In 28, Qatar's National Vision Plan for 23 mentioned that it is necessary to gradually reduce dependence on hydrocarbon industry and strengthen the role of the private sector. In recent years, the average growth rate of Qatar's non-oil and gas economy has gradually accelerated, which is higher than the overall economic growth rate, and the proportion of oil and gas industry revenue in GDP has gradually declined.
The 22 Tax Report jointly issued by the World Bank and PricewaterhouseCoopers shows that in terms of tax payment convenience, among the 189 economies selected in the report, Qatar ranks third with its overall tax rate of 11.3%, average tax payment frequency of five times a year and tax compliance cost time of 41 hours. The continuous improvement of Qatar's business environment has attracted many China enterprises to invest in Qatar. However, when China enterprises "go global", they need to know more about local tax policies.
1
The tax system is relatively simple
The tax system in Qatar is relatively simple, and the main taxes collected include corporate income tax, personal income tax, customs duties and consumption tax.
both resident enterprises and non-resident enterprises in Qatar should pay enterprise income tax on the income generated from their business activities in Qatar. Non-resident enterprises that set up permanent institutions have the same tax obligations as resident enterprises, and non-resident enterprises that do not set up permanent institutions are required to pay 1% withholding income tax according to regulations. The tax rate of 35% is applicable to the income obtained from oil and gas operations and projects related to petrochemical operations.
Qatar has not enacted a separate law on personal income tax, and all the tax provisions on personal income are implemented under the framework of the Income Tax Law and its implementing rules. Qatar does not levy personal income tax on wages and salaries, but imposes personal income tax on business or professional business activities, royalties, gains from movable and immovable property in Qatar, and capital gains arising from business operations, with a tax rate of 1%.
Qatar's consumption tax system is consistent with the consumption tax system agreed by the Gulf Cooperation Council (GCC) member countries. The applicable tax rate for tobacco and tobacco derivatives is 1%, the applicable tax rate for carbonated drinks is 5%, the applicable tax rate for functional drinks is 1%, and the applicable tax rate for other special-purpose commodities is 1%.
Qatar has not levied value-added tax. At the Arab Finance Forum held in February 216, Gulf countries have reached an agreement on levying value-added tax, which will be set at two tax rates, namely, the standard tax rate of 5% and the zero tax rate, but it has not yet been implemented, and the specific levy date has not yet been determined.
Qatar Financial Center applies special tax management systems and regulations. In Qatar Financial Center, tax management is mainly based on the Tax Regulations of Qatar Financial Center and the Tax Operation Guide of Qatar Financial Center Authority. Qatar Financial Center enterprises pay taxes on taxable income originating in Qatar, and the basic tax rate is 1%.
2
Tax policy attracts foreign investment
The Qatari government has made great efforts in attracting foreign investment. Before 219, foreign investors mainly invest in Qatar by establishing joint ventures or equity participation, and the proportion of foreign investors' investment shall not exceed 49% of the total investment. Foreign natural persons cannot directly invest or undertake engineering contracting projects locally, but must establish joint ventures locally. In recent years, the Qatari government has relaxed its restrictions on foreign investment.
Qatar has stipulated in Law No.1 of 219 that foreign investors can enjoy exemption from enterprise income tax (up to 1 years), exemption from customs duties on imported machinery and equipment for engineering, exemption from customs duties on imported raw materials and semi-finished products needed by manufacturing industry and not available in Qatar's local market.
Qatar has two free trade zones, namely, the International Airport Free Trade Zone and the Hamad Port Free Trade Zone. Enterprises in the free trade zone allow foreign investors to hold 1% of the shares, and can also enjoy a tax exemption period of up to 2 years for corporate income tax, personal income tax and customs duties. In addition, foreign companies operating in Qatar Free Trade Zone can also enjoy a series of safeguard policies such as no capital circulation restrictions, limited liability company system, application of bilateral tax treaties in more than 65 countries, data and intellectual property protection.
Qatar also has two special economic zones, namely Qatar Financial Center and Qatar Science and Technology Park. The legal system of Qatar Financial Center stipulates that in addition to general tax-free items, registered funds, special investment funds, special fund companies, innovative risk control institutions, listed enterprises in Qatar and charities can enjoy special tax-free concessions. Licensed projects established in Qatar Science and Technology Park can be exempted from enterprise income tax indefinitely, and imported goods and services are exempted from customs duties.
3
Pay attention to the particularity of tax system
In recent years, China-Qatar economic and trade cooperation has maintained a rapid development momentum. China has become Qatar's largest trading partner since 22, and Qatar is also an important natural gas partner of China. FIFA World Cup Qatar 222 is a microcosm of the rapid development of China-economic and trade cooperation, and "made in China" can be seen everywhere in the stadium: Lusaier Stadium built by China Railway Construction and "Made in Yiwu" occupy 7% of the commodity market around the World Cup, special pure electric buses supplied by China car companies, Alcazar photovoltaic power station built by China, lawn irrigation and maintenance technology provided by Ningxia University, and acoustic and photoelectric system competition services provided by Zhouming Technology ...
Data show that in 221, In the first half of this year, the bilateral trade volume between China and Qatar reached US$ 12.83 billion, a year-on-year increase of 71%.
Facing the increasingly close economic and trade relations between China and Qatar, Chinese investment enterprises in Qatar should fully understand Qatar's investment policies and avoid tax risks while seizing investment opportunities.
First, we should avoid the "do not do" areas of investing in Qatar. In Qatar's newly revised foreign investment law in 219, although the proportion of foreign investment was liberalized, the regulations prohibiting foreign investors from investing in Qatar's banking, insurance, business agents and real estate industries were still retained.
Second, we should pay attention to the special tax regulations of Qatar Financial Center. For example, on the issue of capital weakening, it is usually stipulated that the interest expenses can be deducted for the part of the related party loan that does not exceed 3 times the owner's equity and the loan is used for the taxpayer's daily operation. However, in Qatar Financial Center, the interest expenses whose creditor's rights ratio between related parties and borrowers does not exceed a certain proportion can be deducted, and the excess part cannot be deducted. This ratio is 4: 1 for financial institutions and 2: 1 for non-financial institutions.
the third is to predict "uncertainty". When a Qatari resident taxpayer pays money to non-resident taxpayer, withholding tax shall be deducted from the remittance, and non-resident taxpayer may apply for tax refund according to the applicable bilateral tax agreements. It takes a long time to apply for tax refund, usually about one year, and there are cases where the tax refund application has not been completed for two years. Investment enterprises in China should leave enough space in capital planning so as not to affect the normal operation of enterprises. (Author: No.1 Inspection Bureau of Changsha Municipal Taxation Bureau, State Taxation Administration of The People's Republic of China; State Taxation Administration of The People's Republic of China Xiangtan High-tech Industrial Development Zone Taxation Bureau; School of Economics and Trade, Hunan University)