Qatar Rejects Tax Exemption For Foreign Investors
Qatar’s Advisory Council has rejected a proposal to exempt foreign individuals and institutional investors from capital gains and income tax on domestic stock market investments.
The proposal, which was approved by the State Cabinet and the Financial and Economic Affairs Committee, sought to grant foreign individual and institutional equity investors exemption from taxes on capital gains and income earned from cash dividends and interest from bonds, treasury bills, and debentures.
The Advisory Council rejected a draft law on the exemption, calling for the revision of three of its articles. The council argued that granting favorable conditions to foreign equity investors would not benefit the Qatari economy since many foreign investors exit the market after making a profit.
A spokesperson for the council argued that foreign investors in the stock market should be treated the same as foreign owners in Qatari companies. “When we tax a non-Qatari owner of a Qatari company or industry, why should we exempt a stock investor from tax on profits he makes through capital gains or income from dividends or interest on debt instruments?” he said.
Source: tax-news
