BDO Corporate Tax News

The Qatar Financial Centre (QFC) has introduced a business-related expense incentive that allows qualifying entities to receive a tax credit based on qualifying expenses, which will result in a nil tax liability. The QFC, an onshore financial and business centre in the region that aims to engage with global industry leaders, startups and investors, has its own legal, regulatory, tax and business environment aimed to help drive economic development in the country.

The tax credit will match a qualifying entity's tax liability for five years following the date the entity received its licence. All qualifying entities remain subject to the QFC tax rules and standards for computing taxable profits, as well as administrative requirements.

To be eligible for the tax credit, an entity must satisfy the following criteria:

• Have registered for and attended the QFC’s web summit in 2025;
• Not be connected to an entity already incorporated in the QFC that operates in the same or a similar industry;
• Have an innovative business model that incorporates technology as a key component; and
• The business model must be scalable and demonstrate significant growth potential.

When calculating its taxable profits, a qualifying entity will determine the tax credit due in respect of qualifying expenses. If the tax due exceeds the qualifying expenses, the excess tax may be carried forward to the next period, allowing the firm to offset qualifying expenses against the current and carried-forward tax liabilities.

The tax credit may not be combined with any other tax relief or concession. It will be revoked if any changes in the firm's ownership or scope of licence result in the firm no longer meeting the qualifying criteria or if the credit is misused.

Guidance on the operation of the tax credit available to all QFC web summit firms has been published in the QFC Tax Manual, which provides detailed information on how the incentive works.

Gavin Brown
BDO in Qatar