The General Tax Authority announced the availability of direct application of double taxation avoidance agreements, with the aim of enabling eligible entities to benefit directly from the benefits of double taxation avoidance agreements, through simplified procedures and clear standards that enhance efficiency and transparency.
The General Tax Authority explained that this service provides approved entities with the possibility of applying the reduced withholding tax rate at source or exemption from withholding tax at source when making payments to non-resident beneficiaries, in line with the provisions of the agreements to avoid double taxation in force between the State of Qatar and the countries of tax residence of the beneficiaries. This contributes to speeding up procedures, reducing complications, and improving tax compliance.
The service allows eligible taxpayers to apply for “approved debtor” status via the “Taxa” platform, using approved forms, in accordance with the mechanisms specified by the Authority. Eligible entities to apply include ministries, government agencies, public bodies and institutions, financial institutions, and companies listed on the Qatar Stock Exchange.
This service focuses on supporting the business environment by enabling the direct application of double taxation avoidance agreements and improving the efficiency of cross-border transactions, which reflects positively on cash flows and enhances investor confidence.
The Authority determines the criteria for granting “approved debtor” status, which includes meeting the minimum number or value of withholding tax transactions at source during the previous tax year, while reserving the right to invite government agencies or qualified taxpayers to apply in accordance with the approved controls.
This service comes within the Authority’s efforts to simplify tax procedures, enhance transparency and justice, support the diversification of the national economy, and attract foreign investments, which contributes to raising the competitiveness of the tax system in the State of Qatar and supporting financial sustainability.