Double Taxation Agreement: Qatar
A first-time comprehensive Double Taxation Agreement between the United Kingdom and the State of Qatar was signed in London on 25 June 2009 by the Rt Hon Stephen Timms MP, Financial Secretary to the Treasury and H.E. Yousef Hussain Kamal, Qatar's Minister of Economy and Finance.
Welcoming the Agreement, the Financial Secretary commented that 'This treaty is a welcome addition to the UK's tax treaty network; it will strengthen economic ties between our two countries and will be good for British companies doing business in Qatar'.
The treaty generally follows the OECD Model Double Taxation Convention. Important features include:
- the latest OECD provision on exchange of information
- zero rate of withholding tax on dividends (except for REITs)
- zero rate of withholding tax on interest but with a provision to ensure the benefits of the interest article can only flow to Qatari residents and companies owned by Qatari residents
The text of the new Agreement is available on HM Revenue & Customs' website, at: Tax Treaties - Signed/not in force and will be published by the Stationery Office as soon as it is presented to Parliament for approval.
The Agreement enters into force thirty days after both countries have completed their legislative procedures. The provisions of the Agreement will then take effect from the next calendar year.
