Pillar Two for QFC entities of large groups
Our group has QFC entities. Does Qatar's minimum tax apply to them?
The situation
Law No. 22 of 2024 overrides conflicting measures, so entities in special zones may be in scope.
The law
- Law No. 22 of 2024 amending Law No. 24 of 2018 (global minimum tax): IIR and DMTT at 15 percent for MNE groups with EUR 750 million revenue in two of the four prior years, for years from 1 January 2025
What it means for you
If the group meets the EUR 750 million test, include QFC and free zone entities in your Qatar effective tax rate calculation. Exempt or low taxed profit can create DMTT.
What to do
- Map all Qatar entities.
- Compute Qatar ETR.
- Model DMTT.
- Follow GTA notification rules.
We can do this for youSetting up in the Qatar Financial Centre or a Qatar Free Zone, and registering for QFC tax: QAR 12,000