GTL Summary:

Article 7 defines taxable income as gross income from all transactions minus allowable deductions and losses. To be deductible, expenses must be necessary for generating income, actually incurred, documented, and related to the specific tax year. Crucially, expenses that increase the value of fixed assets are not deductible. The article also permits the carry-forward of losses incurred during a tax year to offset net income in subsequent years, as specified by the Regulations. This provision establishes the fundamental formula for calculating the net tax liability of a business entity in Qatar.

Document Type: Tax Law Article
Law: Income Tax Law 24 of 2018
Article Number: 7
Country: 🇶🇦 Qatar
Location: Section 3 - Tax Calculation &rsaquo; Chapter 1 - Taxable Income
Order: 13
Last updated at: 2026-02-23 12:13:40 UTC

SECTION 3 - TAX CALCULATION

Chapter 1 - Taxable Income

Article 7

Taxable income is determined based on the gross income arising from all transactions executed by the taxpayer, after deducting allowable deductions and losses stipulated in this Article.

Allowable deductions refer to the expenses and costs incurred by the taxpayer that meet the following conditions:

They are necessary to achieve gross income.
They have been actually incurred and are supported by documentation.
They do not increase the value of fixed assets used in the activity.
They are related to the tax year.

The taxpayer may deduct losses incurred during the tax year from the net income of subsequent years.

All of this is as determined by the Regulation.

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