Capital Gains Tax

Profit generated from the disposal of real estate located within the state, or the disposal of shares, property rights and any tangible or intangible assets associated with an activity conducted within the State of Qatar, is subject to capital gains tax.


Tax Exemptions

Notwithstanding any tax exemptions provided for by special laws or international agreements or by Article (35)  of Law No. 24 of 2018 Promulgating the Income Tax Law, the following income sources are exempt from taxation:  
•    Capital gains derived from the disposal of real estate or securities by natural persons, provided that the real estate or securities in question are not associated with assets of a taxable business or activity.
•    Capital gains arising from the revaluation of a company's assets that are offered as an in-kind contribution in exchange for an increase in the capital of a resident joint-stock company within the State of Qatar, provided that the shares received in exchange for the in-kind contribution are nominal and non-transferable for a minimum period of five years.

Tax Rate
•    The tax rate is (10%) ten percent of the taxpayer's taxable income during the tax year.
•    The tax rate is (35%) ten percent of the taxpayer's taxable income during the tax year.

Registration and Declaration 

•    The taxpayer is required to submit the capital gains tax return and make the associated payment to the General Tax Authority (GTA) within 30 days from the date of the asset sale.
•    Taxpayers who have fully or partially discontinued or disposed of their business activities or operations are required to notify the General Tax Authority (GTA) using the designated form within 30 days from the date of discontinuation or disposal of the activity.
•    The taxpayer shall be exempt from the aforementioned notification requirement if they have already submitted a tax return on their income and capital gains for the specified period.

 Submission of Tax Returns
•    All taxpayers, registered or unregistered, are required to file a capital gains tax return within 30 days of disposing of real estate property, shares, equity rights, or any tangible or intangible assets of a business conducted within the State of Qatar and not included in the balance sheet. This is to be done from the contract date or disposal of assets, whichever occurs first. 
•    Income tax registrants may voluntarily submit a capital gains return for assets included in the balance sheet, even though these assets must be disclosed in the income tax return in any case. This is an optional disclosure, and profits from the sale or disposal transactions will not be subject to income tax.

 Accounting Obligations

All taxpayers conducting any business activity within the State of Qatar are obligated to maintain accurate and detailed accounting records, books and documents in compliance with both the laws of Qatar and international accounting standards.  These records must be kept for the duration specified in the Regulations. The General Tax Authority (GTA) may grant certain taxpayers exemption from the requirement to maintain such records under the conditions and circumstances outlined in the regulations.