GTL Summary:

Cabinet Decision No. 39 of 2019, Article 70, clarifies tax liability during corporate restructuring. In a merger, the surviving company inherits all tax obligations of the merged entities. In cases of division, the resulting companies are liable for the original company's prior tax obligations, limited to the value of the assets they received. This ensures that corporate changes like mergers or demergers do not result in the evasion of tax liabilities, maintaining the State's right to collect taxes accrued before the restructuring was completed.

Document Type: ERS - Executive Regulations
Law: Income Tax Law 24 of 2018
Decision Number: executive-regulations-39-article-70
Year: 2019
Country: 🇶🇦 Qatar
Official Name: Article 70
Last updated at: 2026-02-23 12:13:40 UTC

SECTION 9 - GENERAL PROVISIONS

Article 70

In the event of a merger according to the Commercial Companies Law, the merged company assumes all tax obligations of the merged companies arising before the merger's completion.

Similarly, companies resulting from a division assume all tax obligations of the original company related to obligations arising before the division's completion, within the limits of what they received from the divided company.

Fast-loading version for search engines - Click here for the interactive version