Qatar signs double tax treaties with the UAE and Saudi
The Qatari government signed Double Taxation Avoidance Agreements (DTAAs) with both the UAE and Saudi Arabia on 30 May, signalling a significant step in strengthening economic and trade relations between the three Gulf nations and promising to unlock a number of benefits for businesses and individuals operating in these countries.
Individuals and businesses operating in Qatar and the UAE or KSA will benefit from provisions aimed at avoiding double taxation on income earned across borders. This will promote investment and economic activity by providing certainty and clarity on tax liabilities.
The treaties also facilitate the exchange of tax-related information between Qatar and the UAE and KSA, enhancing transparency and compliance with tax regulations. This is intended to enhance efforts to combat tax evasion and ensures a level playing field for businesses operating in the region.
Both treaties further establish mechanisms for resolving tax disputes between contracting parties in a partner state, offering a framework for timely and efficient resolution of any disagreements. This provision will create a more stable and predictable tax environment for taxpayers and investors.
By reducing tax barriers and providing greater certainty in respect of tax liabilities, the treaties and intended to promote cross-border investment flows between Qatar and the UAE or the KSA. This fosters economic growth, job creation, and prosperity across the region.
The two DTAAs were signed on the side-lines of the 121st meeting of the GCC Financial and Economic Cooperation Committee in Doha and will enter into force following the exchange of ratification instruments between treaty partners.
“These new double taxation agreements are indicative of Qatar’s strong economy, which has recently ranked 4th globally for economic performance, and the growing relationships for regional and international business.” – Nazar Musa, Head of KSA & Qatar at Sovereign Corporate Services
