GTL Summary:

Cabinet Decision No. 39 of 2019, Article 5, provides detailed instructions for calculating gross and taxable income. It specifies that capital gains from tangible, intangible, and real estate assets are calculated based on market price or consideration. Deductible expenses must be necessary for the activity, documented, and related to the specific tax year. The article also limits the carry-forward of losses to five years and prohibits the deduction of losses from exempt income sources. This ensures that only legitimate, documented business costs offset the taxpayer's gross revenue.

Document Type: ERS - Executive Regulations
Law: Income Tax Law 24 of 2018
Decision Number: executive-regulations-39-article-5
Year: 2019
Country: 🇶🇦 Qatar
Official Name: Article 5
Last updated at: 2026-02-23 12:13:40 UTC

SECTION 2 - TAX CALCULATION

Chapter 1 - Taxable Income

Article 5

  1. To determine the gross income, all revenues arising from transactions carried out by the taxpayer, including the disposal of assets and incidental operations, are considered unless exempt. Compensation due for the damage of an asset is treated as revenue arising from the disposal of that asset. Revaluation gains of assets are not considered unless they are actually realized.

  2. The capital gains arising from the disposal of tangible and intangible assets are calculated as follows:

    1. For non-depreciable assets, the gain is calculated as the difference between the received consideration or market price, whichever is higher, and the cost of the asset.

    2. For depreciable assets, the gain is calculated as the difference between the received consideration or market price, whichever is higher, and the net book value.

    3. For the disposal of ownership shares in legal persons, the gain is calculated as the difference between the sale price or fair value, whichever is higher, and the seller's share in the capital, provided all supporting documents are submitted, considering all surrounding circumstances of the transaction.

    4. For the disposal of real estate owned by non-residents who do not engage in activities within the state, the gain is calculated as the difference between the sale price or market price, whichever is higher, and the acquisition cost of the property.

  3. To determine the taxable income, expenses and costs meeting the following conditions are deducted from the gross income:

    1. They must be necessary for the purpose of the activity, in a way that gross income cannot be achieved without them, excluding costs incurred for personal purposes or another taxpayer's activity.

    2. They must have been actually incurred and supported by documents, including especially contracts, invoices, receipts, etc. In the case of depreciation and deductible provisions, this condition is considered met if the depreciation or provision is recorded in the accounting, with supporting documents provided.

    3. They should not increase the value of the fixed assets used in the activity, and fixed assets are determined according to the accounting standards in force in the state.

    4. They must relate to the concerned tax year and be recorded in the accounting.

  4. The taxpayer may deduct losses incurred during the tax year from the net income of subsequent years in accordance with the provisions of Article 7 of the Law, subject to the following:

    1. Losses are not carried forward for more than five (5) years starting after the end of the tax year in which they were incurred.

    2. Losses arising from exempt or non-taxable income sources are not deductible.

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