The General Tax Authority confirmed the implementation of global and local minimum tax rules in Qatar, including the income inclusion rule and the supplementary local minimum tax, starting from the fiscal year 2025.
Taxes added in a post on the X platform, “The application includes groups of multinational entities whose total annual revenues reach 750 million euros or more during at least two of the previous four fiscal years, in accordance with the controls in force.” This is effective from fiscal years beginning on or after January 1, 2025.
Entities not covered
Groups that conduct their activities within the State of Qatar are not subject to the global and local minimum tax framework (the second pillar), regardless of their size, unless they are joint projects that fall within the definition of global rules to combat erosion of the tax base.
A minimum tax of 15% is applied to the profits of multinational companies with revenues exceeding 750 million euros. This is to enhance the fight against erosion of the tax base and the shifting of profits, and to ensure the protection of the national tax base.
Qatar’s clear compliance
to international tax standards
Qatar’s global and local minimum tax reflects Qatar’s clear compliance with international tax standards and its alignment with the OECD’s Pillar Two framework.
The decision provides the global and local minimum tax in the State of Qatar with detailed information about the income inclusion rule (IIR) and the local supplementary minimum tax (DMTT), as of fiscal years beginning on or after January 1, 2025.
According to the implementation of Pillar 2 in Qatar, multinational entities with annual revenues exceeding €750 million in two of the past four years will generally be subject to a minimum effective rate of tax of no less than 15% in Qatar on:
(1) Profits of constituent entities and GloBE joint ventures located in Qatar.
(2) Profits of lower-tier constituent entities and GloBE joint ventures located outside Qatar if not previously subject to an effective rate of tax of 15%.
Ensuring that taxes are imposed fairly
The Second Pillar in Qatar is governed by Law No. 22 of 2024 amending the Income Tax Law (Law No. 24 of 2018), and Cabinet Resolution No. 2 of 2026 promulgating the rules for implementing global and local minimum taxes (the Resolution) (which jointly implements the framework for the global and local minimum taxes in Qatar, also known as the “Qatar Second Pillar Framework”). The framework for Qatar’s Pillar Two is an implementation of the global minimum tax set by the OECD, ensuring that large multinational entity groups generally pay an effective rate of tax of at least 15% on profits in each jurisdiction in which they operate.
Qatar adopted the second pillar to combat tax base erosion, to comply with international tax standards, and to ensure fair taxation of major multinational entity groups.
The aim of Qatar’s Pillar 2 framework is to ensure that large multinational entity groups pay the minimum tax on profits, preventing the shifting of profits to low-tax jurisdictions. Qatar’s Pillar 2 framework closely follows global rules to combat base erosion.