Qatar parent and IIR
We are a Qatar parent with low-taxed foreign units. What applies?
The situation
The IIR makes a Qatari parent pay top-up on low-taxed foreign constituent entities.
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
Compute the effective tax rate for each foreign jurisdiction. Where a foreign unit pays below 15 percent and that country has no qualified DMTT, the Qatar parent pays the top-up under the IIR. A country with its own qualified DMTT collects first.
What to do
- Map foreign units.
- Compute ETR.
- Check foreign DMTTs.
- Compute IIR.
We can do this for youPillar Two scoping, DMTT and IIR readiness for groups with Qatar entities: QAR 18,000